Hi Nuno,
Effective Interest rate is calculated based on the chasflow, which eventually is based on the bond interest rate.
You may want to take a look at NPV (Net Present Value).
https://en.wikipedia.org/wiki/Net_present_value
https://en.wikipedia.org/wiki/Internal_rate_of_return
https://en.wikipedia.org/wiki/Effective_interest_rate
https://blogs.sap.com/2016/06/01/sap-effective-interest-rate-vs-ms-excel-irr-xirr/
https://blogs.sap.com/2016/06/08/npv-analysis/
Hope this helps.
Kind Regards
Hello Gustavo Vazquez,
Thank you for answering but my doubt is not about the concept of Interest Rate or Intereste Rate.
My question is related of posting both Nominal Interest Values and Effetive Interest Values (so i have a result gain or loss of the Interest).
Do you think is possible?
I notice your links relate to Money Market but i'm only configuring Securities.
Thank you again,
Nuno Anjos
Hi Nunjo,
I think it's not possible. You could create another condition to post Effective Interest, but this will affect cashflow of the bond.
In the examples I talked about Money Market, but the same is valid for Securities.
Kind Regards
Hello Gustavo,
Yes, SAP confirmed it's not possible. They also sugested to use the 54A product but i need the information about the SECURITY_ID and i do not have it in that type of transaction.
We will inform the client and maybe develop something. Thank you very much for your help.
Nuno Anjos
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