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Former Member
Sep 21, 2012 at 11:53 PM

Re-Payment Interest calculation Issue


Dear Friends,

Could you please help me in resolving the below issue?

I am trying to create an Inter Co loan ( using a product type which is copy of the variable interest rate adjustment 55A since we are still in ECC 6.0 )

The repayments will not be known at the start of the loan, so in the structure tab I left the amount blank.

For example;

Loan amount $1M

Tenure: 5 years

Fixed interest : 10%

Start of the loan ; 09/01/2012

Now if there is a one time repayment for $20k on say 09/01/2013, the interest of 10% should be calculated from 09/01/2012 on the base amount of 0.8M

I tried to copy the repayment condition with an effective date of 09/01/2013 , due date being same and update rule as adjusted.

I could see the repayment amount in the projected cash flows but system doesnt show the interest flows after the repayment?

Please let me know if I am doing this correclty or what am I missing?

Attached are some screen shots.