Loan - Interest Fix Rate Method on Principal amount.

[Former Member]

Dear Experts,

I have configured the Loan - IT0045.  I want to calculate Interest by fix rate method on Principal amount i.e. Rs.45000/-

Now I am getting Interest by reducing balance method on balance amount.

Scenario is as follows:

Principal: 45000/-

Interest: 10% - Flat/Fix & up to last instalment should be deduction on Rs.45000 principal. Period: 60 Months

Instalment: 750/-

Thanks in advance.

Regards,

Santosh Shivane

[Sanky]

Hi Santosh,

I think you can go with below solution. Check it and it's feasiable for your client.

1. Create two interest rate 10 % and another one is No interest.

2. In the 1st month when you are creating a loan then used 10% interest rate and check the repayment plan. From there you will get the 1st month Interest amount and now keep this in mind.

3. Now copy this loan and make a start date is next month without interest and maintain that interest amount in another wage type of IT14 with delimit date of the new copied loan's delimit date.

4.Post this wage type interest amount to vendor as same for /LID posting.

Hope so it will work.

Regards,

Sankarsan

[Former Member]

Hi Santosh,

I believe the scenario that you can be handled only through a custom enhancement. You can use feature 40LIN to specify the interest calculation and repayment. You can create a custom function module for this purpose, and assign the same in the feature. I have not explored the possibilities of the function module in detail. But, I guess it should be possible to do an interest calculation on the full amount as per your requirement.

Cheers,

Rahul

[Former Member]

Hi Santosh

You can set the conditions. pls refer screenshot below

[Former Member]

Dear Experts,

Please give the solution for the same.

This is very appreciated.

Regard,

Santosh Shivane

[Former Member]

Hey Santosh,

Did you get the answer to it, if yes pls share...

Thanks

[Former Member]

Hi santosh,

can you please share how you completed this requirement.

[raghu_c]

Pl Check In the Conditions for loan type ..Interest Calc Method as ACT/ACTy

Raghu

[Former Member]

Dear Raghu Sir,

Thanks for your prompt reply.

I checked method ACT/ACTy, this is not working.  any other method.

Now system calculating the Reducing Method, but my client required Fix/Flat Interest Method

Regards,

Santosh Shivane