Amortization of Premium/Discount for Bonds

[Former Member]

Hi,

I think the results of SAP's amortization are okay since at the end of the term the amortization amount is zeroed out. But my problem is, I cannot show the client as to how the amortization value per key date is calculated by SAP. Has anyone of you tried manually computing the value and were you able to get the exact computation? How's the EIR used in the amortization computed? As we know, if you're using an Excel you simply have to create the cashflow and use the goal seek function to get the EIR.

Amortization 3000-SAC Net I'm using in ECC6 version has the following settings;

Calculation category - SAC

Gross/Net - Net

Amortization To - Amortization to End of Term (SE/LO SAC)/Int.Calc.(LO LAC)

Include Interest - Include Interest, Accrued Interest Adjustment (Sec.Only)

Treat.EffInRate - Adjust Effective Interest Rate Immediately (Standard)

Thanks,

Chaikaru

[Former Member]

Hi,

EP3 has been applied already but Amortization log option in TPM1 still does not appear. In the Amortization log, will it show the EIR computed and how the amortization amount was computed. I wonder if anyone can provide me a sample screenshot of how the log looks like. Would appreciate it very much.

THanks,

Chaikaru

[lorenz_sperl]

Hi,

when starting TPM1, you can flag the field "Amortization Log" in the Output Controll of the selection screen.

Perhaps this helps.

Regards,

Lorenz

[Former Member]

Hi Lorenz,

Thanks but I there's no selection option for "Amortization Log" in TPM1. I already clicked "Selection Options" in Edit Menu but its not appearing.

Thanks,

Chaikaru

[lorenz_sperl]

Hi,

...if I'm right, the Amortization log was introduced with EhP3. At least, in SNote 1163091 there is only a correction instruction for EhP3 mentioned

Regards,

Lorenz

[jasmine_li]

Hi Chaikaru,

You may refer to note 864857 which documents functionality provided by the system. It also explains the calculations

performed by the system to determine the effective interest rate and the SAC value.

Note 1049697 provides analysis tool which helps by analysis of the calcualtion.

In the screen of the TPM13, to run the tool please mark the amortization flow (derived business transaction), write into the

ok field 'analyse_amort' and hit enter. Afterwards the Excel will be started and a new sheet with flows and amortization

calculation will be created.

Best regards,

Jasmine