Dear Experts,
Calculation of Interest:
Can any one tell me how to link above two condition to transaction and interest rate instrument
For Interest transaction how to assign two conditions (Interest - 1210 and Interest on Interest -1151 ) to Interest Rate Instrument
Need to create tow different Interest Rate instruments Say :
1. for Interest -1210 - 10 % interest rate
2. for Interest on Interest - 1151 - 5% Interest on Interest
can any one advice me how to handle different two condition types with loan
Regards
Sadiq
Hi Sadiq,
Let me see if I understand your requirement correctly:
Period 1
1) you have a nominal base amount
2) you calculate 10% interest on this nominal
3) this interest is not settled/paid; Instead it is capitalized (added to the nominal/borrowed amount)
Period 2
4) You have the initial nominal base amount. In addition you have a separate capitalized interest "nominal amount"
5) interest on the initial nominal amount is calculated (10%) and is capitalized
6) the interest on the capitalized amount is calculated (5%) and is capitalized
And so forth.
This does not fit with standard SAP IRI functionality; In standard, Interest capitalization amount is added to the nominal base amount and therefore the standard interest amount is applicable on this amount. Secondly it is not possible to assign two interest conditions to one deal.
Regards,
Ivo
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