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Product Type 04I amortization of Discount

Jul 13, 2017 at 01:37 PM

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Former Member

Hi SAP Gurus

I have a requirement that I want to amortize Premium paid on purchase of Bonds. But don't want to amortize Discount.

How to achieve this.

With Regards

Rajesh

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5 Answers

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Former Member
Jul 18, 2017 at 03:55 PM
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Hi,

Best way is to use Amortization procedure - SAC / LAC net instead of gross. You will have to make 2 new flows for Premium and Discount as other flow conditions. You will have to set the Premium update type in node - Set effects of update type appropriately and for the Discount flow the category should be - no position changes. In this way only your premium will be amortized and discount will just be a flow to post without amortization .

Regards,

Nikhil

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Former Member

Hi Nikhil

At the outset, I thank you for prompt answer.

Your solution is working. But now issue is that system at the time of sale is not considering discount that I had captured in other flows. For Example,

I had made purchase of INR 1,00,00,000.00 with discount of INR 20,00,000.00 in other flows. And I am making sale of INR 1,10,00,000.00. System is posting profit of INR 10,00,000.00 with (1,10,00,000.00 - 1,00,00,000.00) Tcode TPM18. But I want system to book profit of INR 30,00,000.00 (i.e. considering discount also)

Regards

Rajesh

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Former Member Jul 19, 2017 at 05:57 AM
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Hi Nikhil

At the outset, I thank you for prompt answer.

Your solution is working. But now issue is that system at the time of sale is not considering discount that I had captured in other flows. For Example,

I had made purchase of INR 1,00,00,000.00 with discount of INR 20,00,000.00 in other flows. And I am making sale of INR 1,10,00,000.00. System is posting profit of INR 10,00,000.00 with (1,10,00,000.00 - 1,00,00,000.00) Tcode TPM18. But I want system to book profit of INR 30,00,000.00 (i.e. considering discount also)

Regards

Rajesh

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Former Member Jul 20, 2017 at 11:15 AM
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Hi Nikhil

Is there a way around to consider discount amount at the time of sale of bonds

With Regards

Rajesh Gupta

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Former Member
Jul 21, 2017 at 07:36 PM
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Hi Rajesh,

I believe the system behavior is correct in terms of Posting. Any changes in actual position will always be booked with position component. In this case the only way I see is to toggle the GL accounts for Gain update type same as the Discount flow, so you GL balances is correct. But make sure this change doesn't affect the other Gains/losses update types, may be you could create new update types.

Regards,

Nikhil

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Jain varghese Jul 27, 2017 at 03:16 AM
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Hi,

Please change position change category.It will work.


Regards,

Jain Varghese

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