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Money market Amortization via TBB4/TPM44

May 08, 2017 at 07:48 PM

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So, we are only using Money Market standard Product types (no Security module) commercial paper, fixed rate & variable rate bonds (550 Product category).

Can I use Accrual/Deferral configuration via Difference procedure to carry out the amortization of Issuance/Premium/Discount/Upfront fees? Or do I have to use Amortization procedure under Position Management settings to trigger amortization? We only have USD transactions. By using amortization procedure, under Position management configuration, system will still amortize any upfront cost by dividing it by the # of days from issuance to maturity, correct? Any insight will be highly appreciated!

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2 Answers

Gustavo Vazquez May 09, 2017 at 01:16 PM
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Hi Anish,

What do you want to do, amortization accrual ?

You could use amortization procedure with

LAC , NET, Amort. for installment repayment, Adjustment for translation flows.

SAP Note 1787054.

https://help.sap.com/erp2005_ehp_07/helpdata/en/60/19c55368511d4be10000000a174cb4/content.htm

Kind Regards


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Hi Gustavo,

For some reason, I am not being able to get the amortization running via TPM1 for 550 Product categoty. Below are the steps that I have taken into my configuration in order to amortize Premium/Discount (1903 flow) & Issuance cost (1901 flow) in Money Market:- Now, we are on Enhancement Pack 17, Service pack 12 SAP system

1. I have made all the Product types with 550 product category to enable Premium/Discount check on Product type itself.

2. Configured the Amortization Procedure under PMP

3. I have assigned update types under Derived Business transactions for Inflo & Outflow related to Premium & Discounts

After all these, I am still not being able to change the Position change category for Amortization flow:-

I am showing you this below screen shot from TPM13 for one of the transactions that I have created to kick off the Primium flow:-

Kindly let me know, what else might be an issue here! Many thanks for your help.
jejpy.png (80.6 kB)
wwmt6.png (63.3 kB)
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Anish Jhaveri May 09, 2017 at 03:23 PM
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Hi Gustavo,

Thanks a lot for your answer above - basically, I want to use amortization for Premium/Discount, issuance fees on variable/fixed rate bonds and also for utilized/unutilized, upfront fees for facility. I can use Accrual/Deferral config to assign various AD series update types to the 1900 seriess & 1200 serieses flows, which can be amortized. And using Difference procedure for those update types to create posting of Amortization from Balance sheet to Expense every month end by running TPM44.

Do you see any disadvantage of doing amortization that way? Or suggest something else. We are only using Money market module.

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Hi Anish,

You approach is correct with TPM44 transaction, especially if you need to do amortization for other flows from the transaction.

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