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Add spread to interest rate

Hi Experts,

I would like to add a spread rate to existing interest rates. I would like to use variable Libor interest rate and maintain interest rates in the table. business would like to add the spread (Additional rate) to the libor.

For example, The Libor interest rate is 2.34 and would like to add 0.06 as spread. The total interest is 2.34 + 0.06 = 2.4. Business would like to use 2.4% for interest calculation.

I have the option to enter the spread one time while creating the investment/borrowing deal, but would like to update every month or as and when spread rate changed.

Please suggest the options available to achieve this requirement.

Thanks

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3 Answers

  • Posted on Jul 27, 2016 at 01:41 PM

    I found the way to use spread functionality by using formula.

    Use the standard formula 0001=V*V2+V3

    V= variable interest rate (for ex: LIBORUSD01) = 2%

    Let say V3= Spread interest rate (IM_USD_1)

    V1= 2% (LIBORUSD01)

    V2= Constant value =1

    V3 = 0.5% (IM_USD_1)

    Therefore 2%*1+0.5% = 2.5%

    If required we can design our own formulas.


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  • Posted on Jul 11, 2016 at 03:09 PM

    Hi AR AR,

    Change an Excel file with the spread you want and upload it with TBEX .

    As far as I know, there is no standard way in SAP to do it.

    Kind Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 11, 2016 at 03:45 PM

    HI,

    You need to add new condition every month whenever the spread in the deal changes and the system will then use the latest spread for the interest.

    Regards,

    Nikhil

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