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Former Member
Oct 29, 2012 at 09:51 AM

Discount/Premium tracking during legacy data transfer

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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