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Former Member

Principal decrease at rollover

Hi Experts,

I'm a FICO consultant and I do not know much about TR module but I need to implement offshore loans (transactions with no FI postings) for our users.

Below are the configurations we have done:

Configuration for offshore loans

Financial Supply Chain Management > Treasury and Risk Management > Transaction Manager > Money Market > Transaction Manager.

  1. Product type (not required)
  2. Transaction types
    • Introduce new transaction type EXT for offshore loan
    • Introduce new number range (to be configured in target system)
  3. Flow types – new flow types starting with 8 series, description (no FI); 8203 for bonds, seldom used in our company.
  4. Update types – required when there are new flow types introduced; similarly, created new update types MM8*
  5. Condition types – 8 series exclude (CP)

However, we encounter errors when we are testing the rollover.

When we try to increase or decrease the principal while doing rollover, the cash flow is generated with and extra line of Final repayment automatically.

(See attached screenshot)

When we rollover for a normal loan transaction (with postings to FI), this dose not happen.

Please advise what is the possible cause of this extra cash flow and how to control the auto generated cash flows of a transaction.

Thank you.

Sei

Capture.JPG (55.1 kB)
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    author's profile photo Former Member
    Former Member
    Posted on Jan 21, 2014 at 01:10 AM

    Thanks Renatas, but our company is not using derived flows.

    I have found out that if I untick relevant to posting in the flow type definition of money market, the extra cash flow will be generated. But if I tick the option, the flow disappear and everything looks fine.

    However, I do not need FI postings for this business scenario and this behavior of SAP is rather strange to me.

    I'm going to log to OSS to find out if this is a bug and if there's any note we can apply.

    Thanks.

    Sei

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  • Posted on Jan 20, 2014 at 08:50 AM

    Hi Sei,

    one important thing to understand is that in case of roll-over you either increase or decrease the principal amount, you final repayment amount (at maturity) should change automatically, e.g. you borrowed 10 mio THB on 01Jan2014 with maturity date on 01Febr2014, then on 01Febr2014 you decide to roll-over for another month with nominal decrease 1mio THB, so your final repayment amount (if no other changes) should be 9 mio THB.

    however, it looks quite strange (both from Process logic and setup), that due to increase or decrease of the principal during rollover, the extra Final repayment flow is is generated automatically - at least I don't get such result on the Demo system I'm using. I guess you need either to re-test your scenario and make sure you execute your steps in the correct order; if this does not work, then you need to check your Customising - probably you should start from Derived flows -> SPRO -> TRM -> Transaction Manager -> Money Market -> Transaction Management -> Flow Types -> Derived Flows - see if any Define Derivation Procedures and Rules generates this 8120 Final repayment flow due to increase or decrease of the principal amount - this is just my assumption.

    hope this will help you.

    Kind regards,

    Renatas

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