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Interest calculation issue in SAP Treasury

Hi Experts,

We would like to adjust interest earned amount first at the time of repayment of loan.

Let say, Company-A give a 2 Million loan to Company-B on 01 Jan. Company-B paid 2 Million back to Company- A on 20th Jan. Assume interest is 20000/- for first 20 days. Company-A adjust 20000/- as a interest from the repayment and they treat that Company-B paid principal amount 1980000 (2,000,000-20,000). The outstanding principal amount is 20000 as on 20th Jun.

when user enter 2 Million repayment, system should adjust 20000 to interest and 1980000 to principal amount automatically. (Note- Company never calculate interest on interest)

Can we achieve this scenario in SAP?

Pls suggest


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3 Answers

  • Jun 26, 2017 at 07:19 AM

    Check product type 53A

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  • Jun 26, 2017 at 02:46 PM

    Thanks Grigoriy !

    I was waiting for your response. Appreciate your response.

    I have tried Prod. type 53A. There are couple of limitations- A) Variable interest rates option is not available (B) If I enter interest rate is "Price" is updating automatically. (C) There is no option to enter the ongoing additional investments and repayments.

    We are using interest rate instruments (Prod. Category - 550 ) for inter-company loans implementation.

    Detailed Scenario-

    1. Company-A Paid $2Million to Company-B on 27 Feb 2017

    2. Interest rate for Feb is 2.28% and the interest is 126.67 for 1 day

    3. Company-A received payment $2 Million from Company-B on 03 Mar 2017, which includes Interest $ 508.33 and principal amount $1,999,491.67. The outstanding principal amount is $508.33

    4. Company-A received total principal amount and interest together $508.66 on 13 Mar 2017 from Company-B, which includes principal amount $508.33 and interest $0.32.

    We would like to build this scenario.


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  • avatar image
    Former Member
    Jun 27, 2017 at 12:05 AM


    You may also want to look at Bond product type which has a repayment type - Perpetual Bonds. Perpetual bonds can be created with no condition type of repayment. So there is no end date. You can enter a Sell transaction through FTR_CREATE to repay / close the loan.



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