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Best way to manage end term of ongoing loans

Jun 22, 2017 at 06:05 PM

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Former Member

Hi Experts,

We would like to track ongoing activity for intercompany loans. As part of the process, there is no clear end date to enter at the time of deal creation for intercompany loans. Let say there are two legal entities- X & Y. X lend money to Y and there is no designated end date to receive money from Y. Whenever funds available Y will give it to X. It can be 1 month or 1 year or 3 years. We calculate interest every month and book accounting entries.

Couple of points to consider-

1. If we give current month/ current year as end of the term, most likely users will forget to update the end term of one month or one year.

2. If i give end date as 31 Dec 9999, system will give run time error for unlimited cash flow generation.

What is the good end term user need to give at the time of deal creation?

Pls suggest.

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3 Answers

Best Answer
Grigoriy Babitskiy Jun 26, 2017 at 06:08 AM
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1. If we give current month/ current year as end of the term, most likely users will forget to update the end term of one month or one year.

Write ABAP programm Reminder to check the dates of all intercompany loans. For example, before a week to remind them to extend all deals.

Plan this programm using SM37.

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Jain varghese Jul 02, 2017 at 09:54 AM
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Hi,

This is open ended loan, In this case what we did is updated end of term as 2099 which most likely no loan will continue till this date.

In case you want to make development then you can proceed with changes in program or you can opt this approach too it business call.

Regards,

Jain varghese

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Former Member Jul 13, 2017 at 01:58 PM
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Thanks everyone. We have decided to use it as year end activity.yearly once users update end date.

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