EMI calculation

[Former Member]

Dear all,

Is it possible to calculate Equated monthly installment (EMI), Simple interest and compound interest say for some principal amount in B one using some UI and complex the mapping process will be with finance module so that accounts are geting effected properly.

Good example for this will be concept used in home loans.

Thanks and Regards

swapnil

[Former Member]

Hi Swapnil

SAP Business One does not cater as standard for interest calculations on loans for example. You could use Freight Charges (Additional Exp. in 2005) to accrue the interest calculation upfront on the invoice and use recurring journals to post the monthly interest charge. Unfortunately any late payments, additional interest or interest rate changes will have to be computed manually and posted as adjustments. You could then use installments to collect the monthly charge, but to change the installment if the interest rate changes will be a problem. I am almost certain that there is an add-on that might cater for some of this functionality. Could be a bit tricky and complex to set up in standard SAP. Other alternative is SDK development.

Kind regards

Peter Juby

[Former Member]

Try out using 'Financials -> Recurring Postings' which Posts JE on specified Intrevals.

or

Try using 'No. of Installments" in the "Payment Terms Setup"