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# Amortisation Proc 4000, SAC - Gross Calculation

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.

capture1.png

capture2.png

capture.png

Regards,

Sarfaraz

capture.png (30.8 kB)
capture1.png (21.8 kB)
capture2.png (26.2 kB)
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### 4 Answers

• Jan 29, 2018 at 01:33 AM

Hi,

check note 864857 for complete explanation on SAC Amortization method.

Regards,

Nikhil

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• Jan 29, 2018 at 10:15 AM

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

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• Jan 29, 2018 at 11:05 AM

analysis-02.png (51.9 kB)
analysis-03.png (41.5 kB)
analysis-04.png (41.7 kB)
analysis-00.png (28.9 kB)
analysis-01.png (31.4 kB)
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• Jan 30, 2018 at 01:39 PM

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

premium-irr.png (30.2 kB)
discount-irr.png (30.7 kB)
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