Amortisation Proc 4000, SAC - Gross Calculation

[former_member536436]

Dear Expert,

We are implementing Fixed Interest Bonds with Premium and Discount with 04I.

Nominal Value - 10000, with 1000 as Premium, so Total Payment Value = 11000.

Amortisation Proc 4000, SAC - Gross Calculation.

Contract start Date 01.01.2018, End Date 31.12.2018, Int. Cal. Method - ACT/360. 5% Interest.

When I check in Amortisation Log per day 2.88 and when ran on 31.01.2018 getting the value as 86.07.

I want to understand the calculation. Can anybody explain me the calculation with the above example.

Attachment for your help.

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Regards,

Sarfaraz

[former_member536436]

Hello Gustavo Vazquez,

Thank you for the screen shot and the link, still I am not able to achieve the results.

I have achieved the result in Excel with IRR formula and the same is matching with SAP.

Attached is the working of Premium & Discount.

Kindly assist me to achieve the result manually to show it to client.

Regards,

Sarfaraz

discount-irr.png

premium-irr.png

[Gustavo_Vazquez]

Hi,

With end date 26.12.2018, total days is 356. Check with trx FIMA.

What difference do you get ?

Kind Regards

[former_member536436]

Hello Gustavo,

When I check in FWZZ in Condition type, it shows me as 360 days.

Regards,

Sarfaraz

[Gustavo_Vazquez]

The condition could be 360 days, but day calculation is 356

If you don't trust SAP, trus Excel with DAYS360 function 😛

please share your screenshot

Kind Regards

[former_member536436]

Dear Gustavo Vazquez,

My Int Calcultation Method is Act/360.

capture.png

Regards,

Sarfaraz

[Gustavo_Vazquez]

https://help.sap.com/viewer/40a20b5064fa4392b8d5e00f0f9421c2/6.17.14/en-US/980bda531198434de10000000...

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Kind Regards

[former_member536436]

Hello Nikhil,

Thank you for the Note. I did not find the calculation in specific for Premium/ Discount.

Can you please give the calculation (Working) here with the above example I have given.

Regards,

Sarfaraz

[NikhilAdke]

Hi,

check note 864857 for complete explanation on SAC Amortization method.

Regards,

Nikhil