Hello Experts,
Could someone guide me on this? Presently, our client is not tracking discount or premium in a separate account and does not post any entry for discount or premium during purchase of bond. The discount or premium is amortized every month.
The posting would be as follows for example where par value is 10000.
Purchase Entry
Investments Dr 8500
Bank clearing Cr 8500
Amortization Entry
Investments Dr 125
Interest Revenue Cr 125
Interest Accrual Entry
Interest Receivable Dr 45.20
Interest Revenue Cr 45.20
In such case, how do we migrate discount / premium to SAP and track historical amortization. Please guide.
Regards
Raj