Mortgage Loan Entries

[Ahmed_Samir]

Dear Experts,

I'm handling the mortgage loans using interest rate instrument the financial entry should be as below:

When receiving the loan:

Dr. Property Investment           100,000

     Cr. Mortgage Loan                    100,000

while paying the installment using TBB1:

Dr. Mortgage loan                     50,000

     Cr. Bank                                     50,000 

i checked the flow type and update type and  Posting Specifications and the account symbol, but i didn't find a way for the above entry to happened as every time when making the installment repayment it displays the Property investment account not the Bank account.

Regards,

Ahmed Samir

[grigoriy_babitskiy · Accepted solution]

Hello Ahmed,

IMG -> Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> Money Market -> Transaction Management -> Update Types -> Assign Flow Types to Update Types (tr. SM30 -> V_ATFTA)

Here for flow types we can find update types that we need

IMG -> Financial Supply Chain Management -> Treasury and Risk Management -> Transaction Manager -> General Settings -> Accounting -> Link to Other Accounting Components -> Define Account Determination (tr. SM34 -> TRACX_ACC_DETER)

Here for update types we can find our Posting specs

• Posting spec 11200 is general for all transaction. So if you change something here - all your transactions that use this spec will reflect the changes. So i reccomend you to make a copy of posting spec 11200, for example 11201 "Mortage Loan"

For Posting spec 11201 you have to chagne account symbol 3 "Bank posting in payment currency" to 6 "Other GL posting in position currency" or 7 "Other GL posting in payment currency".

So you'll have your scheme:

When receiving the loan:

Dr. Property Investment           100,000
     Cr. Mortgage Loan                    100,000

So Acc. symbol 1 refferes to Mortage Load and 6 (or 7) reffers to Property Investment.

Then i reccomend you to create flow type 1106 (copy of 1105) (tr. SM30 -> V_BWGART5). Assign it to your product type and transactio type (SM30 -> V_ZBEWGRT5) instead 1105 flow. Then create updat type MM1106+ (copy of MM1105+) and assign to usage "1 Transactio type"(tr SM34 -> TRDCV_DFLOWTYPE2). Then Assign Flow Type 1106 to Update Types MM1106+ (SM30 -> V_ATFTA). And then assign update type MM1106+ to posting spec 11201 (SM34 -> TRACX_ACC_DETER)

So every time you create transaction Mortage load, you'll use flow type 1106, which reffers to update type MM1106+, which reffers to posting spec 11201, which have posting scheme you need.

• For posting spec 11100 don't change anythning as it one to one for your posting scheme.

While paying the installment using TBB1:

Dr. Mortgage loan                     50,000
     Cr. Bank                                     50,000

So you'll need to specify GL accounts for Account Assignment Reference "Mortage Load" and account symbols:

1 - Mortgage loan

3 - Bank

6(7) - Property Investment

[Ahmed_Samir · Accepted solution]

Dear Grigoriy,

Thanks for your feedback, i exactly did what you recommend yesterday while i was testing and it worked properly.

Regards,

Ahmed Samir