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Deferred bank Interest Tracking on the G/L Level

Ahmed_Samir
Participant
0 Kudos

Dears Experts,

My customer requirement is to track the Deferred bank Interest for the following years on the G/L level.

So is T.code: TPM44 can be used for such a requirement?

I see that during posting the accrual it also displays the remaining balance for the interest, I'm thinking it can be covered as below:

Loan principal amount: 1 M $

Interest for 5 years: 200,000 $

During running the accrual after the first year ends which equal 40,000 $ for example,

T.code: TPM44 display 160,000 as a remaining Deferred interest, so is it applicable to post the amount to be as below:

Dr. Deferred Interest          160,000    

     Cr. Loan                               160,000

and to be reversed the following day.

After the second year which also equal 40,000 $ for example the below entry should happened:

Dr. Deferred Interest          120,000    

     Cr. Loan                               120,000

and to be reversed the following day as well.

Regards,

Ahmed Samir

Accepted Solutions (1)

Accepted Solutions (1)

jasmine_li
Contributor
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Hello Ahmed,

Whether an accrual or deferral is done depends only on the posting date of the revenue flow with respect to its revenue period. Posted at the end of the revenue period it is accrual, posted at the beginning of the revenue period it is deferral.

Here is an example:

You have an interest flow of 30 EUR that is calculated from 1.1.-31.1.

1) If you post it on 31.1. and run TPM44 let's say on 21.1., then you will get an accrual of 20 EUR (for the period 1-21.1.).

2) On the other hand, if you post the same interest already on 1.1., TPM44 on 21.1. will calculate backwards from 31.1, so you will then get a deferral of 10 EUR (for the period 21-31.1.).

You can find more information in online document for customizing "Assign Update types for Accrual/Deferral)",  Transitorische Abgrenzung -> Update type Deferral.

Hope this helps.

Best regards,

Jasmine

Ahmed_Samir
Participant
0 Kudos

Dear Jasmine,

Thanks for your respond, I'm familiar with the procedure for the what your refer too.

My issue is that my customer wants to post all the interest amount for the whole contract "200,000 $ as per my example" at the first posting period for the contract and to be posted to an asset account like below:

Dr. Deferred Bank interest      200,000

     Cr. Loan account                     200,000

And then each month using TPM44 the below entry should happened:

Dr. Bank interest                         10,000      (Amount related to each month)

     Cr. Deferred Bank interest           10,000 (Amount related to each month)

i tried using the option "due date at the start of the period" but in one of my cycles which the payment is through installment it displays a lot of wrong values! so is that applicable on SAP?

Regards,

Ahmed Samir

jasmine_li
Contributor
0 Kudos

Dear Ahmed,

You may consider to use Netting for accrual/deferral.

Please refer to the below notes for more details:

918570 TPM44: Reset procedure and netting

912679 TPM44: Difference procedure and netting

1389359 Difference procedure and netting

KBA: 1953071

Also below document:

http://help.sap.com/erp2005_ehp_05/helpdata/en/b9/17da531198434de10000000a174cb4/content.htm?framese...

Hope this helps.

Best regards,

Jasmine

Ahmed_Samir
Participant
0 Kudos

Hi Jasmine,

I really appreciate your respond, i checked the document but i don't know the financial effect, if you can send me the Financial entries from the contract start till closure it will be really appreciated.

Regards,

Ahmed Samir

jasmine_li
Contributor
0 Kudos

Hi Ahmed,

Please see the above example for details.

Best regards,

Jasmine

Ahmed_Samir
Participant
0 Kudos

Dear Jasmine,

I really can't describe how much it's appreciated for me , my last question i promise .

is the same applicable on borrowing loans with the same financial entries, as i don't get why there is a revenue account involved in the entries?

At the end, thanks so much for your valuable feedback.

Regards,

Ahmed Samir

jasmine_li
Contributor
0 Kudos

Dear Ahmed,

You are welcome!

Yes, the same should be applicable on borrowing loans.

I just provided an example for securities.

Best regards,

Jasmine

Answers (1)

Answers (1)

former_member198450
Active Contributor
0 Kudos

HI Samir,

Yes, it does.

Regards,

Jain

Ahmed_Samir
Participant
0 Kudos

Dear Jain,

Thanks,So could you provide me with the required configuration for the above, i really appreciate you assistant.

Regards,

Ahmed Samir

Ahmed_Samir
Participant
0 Kudos

Dear Jain,

I really need your fast respond regarding the above topic.

Regards,

Ahmed Samir

former_member198450
Active Contributor
0 Kudos

Hi Samir,

The configuration will be same as you made for any product in money market.

Please try and let me  know if you get stuck in between.

Regards,

Jain

Ahmed_Samir
Participant
0 Kudos

Dear Jain,

It looks like you didn't get my Question, thanks anyway.

Regards,

Ahmed Samir