interest accrual

[Former Member]

Dear all,

We have entered the following loan in SAP Treasury, but the interest accruals are not calculated (see settings for Transaction TBB4 in 2nd image).
Could some help us in this case. Do we need to change the settings of the loan to allow SAP to calculate the interest accrual correctly?

The loan is not visible at all in Transaction TBB4, but if we change the settings to Key Date "Inclusive" we can see the loan but only calculating the interest accrual with 1 day instead of 48 days from 13.03.2015 to 30.04.2015

Any help is much appreciated

Regards,

Gregory

[Former Member]

Hi,

Check these 2 places too in config:

1. Check in define Flow types whether flow type 1200 is checked relevant for Accrual/Defferal. (if you use different flow type for Interest make sure that is checked too )

2. In Treasury and Risk Managementà General Settings à  Accounting à Accrual / Deferral à Money Market: Define Accrual/Deferral - check in Flow type 1200 is maintained. (if you use different flow type for Interest make sure that is entered too )

The Write up / Write Down flows are un realized gains/losses generated from TPM1. Did u run TPM1 on these dates ?can you also Bring in Update type field and post the screenshot again.

The system will generate a Realized gain/loss flow on the final repayment date as this is foreign currency Loan. This is based on the exchange rate difference between the start date of the loan and end date.

Regards,

Nikhil

[grigoriy_babitskiy]

Did you run previous accruals before 30.04.2015.

You can check it with TPM13 transaction (plese post screenshot)

If yes, next time you start accruals system doesn't show you accrual because you have run it.

About "Incl. key date" field.

If i was able to create transaction similar to yours, then you have similar screenshot of flow on 30.04.2015. Calculation period is 31.03.2015 - 29.04.2015.

If you check "incl. key date", then system consider 30.04.2015, but for you transaction this date is new period - so it shows you 1 day accrual - period from 30.04.2015 to 30.04.2015.

[Former Member]

Hi Grigoriy,

Thanks a lot for your answer.

Please find enclosed the screen shot of transaction tpm13.

We don't see any specific accrual, but we see the nominal interest of 31.03. and 30.04 which together should end up in an accrual interest of USD 10'254.

Btw, what are these write-down and write-up in this Loan? And at the end SAP expects a realized loss of USD 998k at 13.03.2016.

Thanks a lot for your help.

Regards,

Gregory

[grigoriy_babitskiy]

What is accruals/defferals: Accruals/deferrals handle the correct, time-based distribution of revenue

or expenses from interest in the Transaction Manager. At the end of each month accruals will show amount of interest that you can get earned, and this amount will be shown in reports. But you cant get this amount of money because of agreement.

Typical example of accruals/defferals: you have deposit from 15.03.2015 till 15.06.2015. You receive interests every month: on 15th.

But at every end of the month you need to prepare reports. It means you need to show accruals/defferal. At the end of month you have to show distribution of revenue. As soon as you start accruals, you will see on 30(31) revenue from 15th till 30 (31). And in most cases you will reset accruals on the 1st of each month. Hope you understand what i wrote.

So in your case you don't have accruals, because you are receiving interests at the end of month. You are earning revenue from the beggining of month till the end of month. You will show it in your reports as revenue and as money your received.

If you use checkmark "Incl." then system takes another period to calculate accruals, i described this earlier.

[grigoriy_babitskiy]

Write up / write down - this is currency valueation. You have deposit in USD, but your local currency is CHF. So you need to prepare your reports in your local currency - CHM.

At the end of month you need to do valueation (tr. TPM1).

At the begging of you deposit (13.03) you have 30 000 000 USD ( 29096843.03 CHM). Exchange rate is 1.0310396893941.

On 31.03 exchange rate changed: it became lower than exchange rate on 13.03. So the system made write down.

On 30.04 exchange reate changed: it became higher than exchange reate on 13.03. So the system made write up.

The same till happen on 31.05. But we don't know exchange rate on this date. So we don't know whether it will be write up or down.

[grigoriy_babitskiy]

About realized loss, usually it is differnce between "Translation of Negative/positive Purchase Value" and "Borrowing / Final Repayment" in local currency. But you also have some derived business transaction "Translation foreign currency valuation possitive"

So: 29144968.22 - 29096843.03 + 950843.03 = 998968.22

At the end of your transaction in 2016 this amount may change. Becaus right now it is only a plan. This amount doesn't depend on TPM1 as it has status (Scheduled). It is calculated on the basis of fixed calculation (status Fixed).