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Capitalise intercompany loan contract trm

Former Member
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Dear experts

Any advise in how to capitalise an  intercompany loan contract  inTRM?

My client needs to capitalize an intercompany loan, but we have not found any condition types available to do so. I am Not talking about a capitalization of interest but that credit becomes part of the capital...Can we do it?

Movement should be similar to  5523xxxx/2403xxx

very much appreciated

Accepted Solutions (1)

Accepted Solutions (1)

former_member198450
Active Contributor
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Hello Julio,

Treasury and Risk Management-Transaction Manager-General Settings-Accounting-Settings for Position Management-Set the Effects of the Update Types on the Position Components

The standard assign position change category is 1010 in system you should change the same to 1015

Please note, incase this situation is applicable to few product, I would recommend you to create new update type for your product and work, Because once change this it will apply for all the product where interest is coming into picture.

Let me know if you need any futher inputs.


Regards,

Jain

Former Member
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Seems ok, but...you are talking about interest...not sure if ok

Former Member
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I am going to try this with a new update type...

cheers

Answers (1)

Answers (1)

grigoriy_babitskiy
Active Contributor
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Hello, Julio

Can you clarify what does it mean to "capitalize intercompany loan" ?

"part of the capital" in your case what is capital? Is it transaction? Or what?

I Understand what is "capitalization of interests", but i don't understand "loan capitalization".

Former Member
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Hello Grigoriy,

i understand from user point of view, Capitalization of the loan is to convert the loan into equity of the company,

can i do this in TRM?

former_member198450
Active Contributor
0 Kudos

Dear Julio,

I assume i understand your requirement. You want loan to be used for investment ?

Please correct me if i'm wrong? In case yes then in SAP TRM we have a concept of facilities which you can use.

Example i have borrowed 10 M from bank used the same to invest in FD. in this case i will create a loan with same amount and link the same into my product.

Again, Let me know whether my perception about your requirement is correct?

All the best !

Regards,

Jain