Money Market - Variable Int Rate - Rounding rule for Interest amount

[Former Member]

We have a Interest Rate Instrument with a Variable Interest Rate form. The Interest Rate adjustment takes place daily. The Interest Rate % is of 7 places of decimal. The Interest Capitalization amount that appears in the Cash Flow Tab has only 2 places of decimal. Is there a way to increase the number of places of decimal for the Interest Capitalization amount in the Cash Flow tab?

I have already tried using the Rounding rule option in the Condition type for the Interest Capitalization flow, but it is not causing any difference. Still the Interest Capitalization amount in Cash flow tab is coming with only 2 places of decimal. This is causing loss of accuracy due to the rounding done daily.

The requirement is to either increase the number of places of decimal in the Interest Capitalization amount, or the system should sum up all the Interest amounts for a month, and then round up, so that accuracy is not affected

Int calculation method =Act/360, Frequency - Manual Input,

Thanks in advance.

[former_member566828 · Accepted solution]

Hi,

amounts in Cash Flow tab are displayed according to the setting of a respective currency in terms of a certain number of decimals (e.g. 2) - I believe it is normal way to do it. also, if both parties are using the same calculation principle, they should end up at the same result.

so I would suggest 2 things:

- make sure you apply the same calculation principles;

- if the previous is not feasible due to any reason, then introduce additional flow just for rounding differences, which should be minor anyway.

Kind regards,

Renatas

[marcelo_trein]

Hi, there is a KBA related to cash flow rounding issues.

http://service.sap.com/sap/support/notes/1956265

[Former Member]

Thanks Marcelo, your link is really helpful.