XIRR ( EXtended Internal Rate of Return) in sap

[sourabh_muthreja]

Hi

i need to calculate the XIRR , Whether it is possible to calculate  in SAP or not ? if it is   possible .pls explain me

Scheduled Cashflow Date	Scheduled Cashflow Date
Tuesday, July 21, 2015	21-07-2015
Thursday, July 23, 2015	23-07-2015
Saturday, July 23, 2016	23-07-2016
Sunday, July 23, 2017	23-07-2017
Monday, July 23, 2018	23-07-2018
Tuesday, July 23, 2019	23-07-2019
Thursday, July 23, 2020	23-07-2020
Friday, July 23, 2021	23-07-2021
Saturday, July 23, 2022	23-07-2022
Sunday, July 23, 2023	23-07-2023
Tuesday, July 23, 2024	23-07-2024
Wednesday, July 23, 2025	23-07-2025
Wednesday, July 23, 2025	23-07-2025

[Gustavo_Vazquez · Accepted solution]

Hi Sourabh,

I tried this sometime ago and its not easy. The function is FIMA_IRR_CALCULATE .

Check sap notes 90591, 316142, 839381, 1035682, 1039478, 1072314, 1728036, 1851890.

Kind Regards

[sourabh_muthreja · Accepted solution]

Hi,   is there any alternative for that , because my client  want xirr inteslf in sap

reasons for that ,

XIRR or IRR (Internal Rate of Return) is a measure/ indication of return/ cost for a stream of specified cashflows on specified dates. It is that common rate which when used to discount all the cashflows to the present value such that the net present value of all the cashflows when added together yields zero.

XIRR is a built in MS-Excel Function which replicates the above concept. For purposes of the bonds issuances we frequently use this measure in various permutations and combinations to arrive at comparative sense of costing across instruments with different structures

[Gustavo_Vazquez · Accepted solution]

Hi Sourabh,

Not that I know of.

kind regards

[sourabh_muthreja]

Hi  Gustavo,

ii am also planned to use of effective interest rate , as there is no other option

the value i am getting through effective interest rate is not as same as XIRR,

Only slightly different , which can be ignored

Thanks

[Gustavo_Vazquez]

Hi Sourabh,

I tried some methods and seems to be Eff.int.methd. 6 ( EU Act/365) is which best suits XIRR .

Could you confirm that ?

Kind Regards

[Gustavo_Vazquez]

SAP Note 839381 says Effective Interest Method 6 (EU Act/365) is the best for Excel XIRR

[sourabh_muthreja]

system is asking for password , i do not have passowrd , when i using the link of sap note

'i request you please share what  sap has written

Thanks

[former_member198450]

Hi,

Please find what Note states

************************************************************************

Symptom

The effective annual interest of a financial transaction should be calculated by using SAP software.

Other Terms

Effective interest rate record, SAPLFV90, FV90

Solution

Remark:
If you want the calculated effective interest rate to correspond to the result in the Excel function XIRR (Internal Rate of Return), you use the effective interest method "EU-act/365".

The 'EFFEKTIVZINS_BERECHNEN' function module is available for the effective interest rate calculation.

Its use is demonstrated by the following example:

A loan of 1004.95 EUR is paid back in 4 monthly installments of 257.63 EUR. How high is the effective interest rate record or effective annual interest?

a) Import parameters

Since most import parameters are optional and have a suitable default value, you only need to define which effective interest rate method should be used to calculate and how the result should be rounded.

I_SEFFMETH = 6  => effective interest method "EU-act/365"

I_RUNIT = 0            => no rounding

or I_RUNIT = 0,0001  => rounding to 4 decimal places

b) The payment structure is set in the table IEFFZ. In this case, the field DDISPO contains the payment due date and the field BCWHR contains the amount with the appropriate positive/negative sign. The remaining fields are mainly used for program-internal purposes.

DDISPO	BCWHR
01.01.2005	1,004.95
01.02.2005	-257.63
01.03.2005	-257.63
01.04.2005	-257.63
01.05.2005	-257.63

c) Export parameters

The effective annual interest in accordance with "EU-act/365" is 13.0413% and can be retrieved from the parameter E_EFFZINS.

In the export parameter E_PERZINS, with the method 'Moosmüller' and the US method, the period interest is also ready for retrieval.

d) Control account

Payment date	Operation	Amount	Balance	Days	Interest
01.01.2005		1,004.95	1,004.95
01.01.2005	Interest capitalization	0.00	1,004.95	31	10.52
01.02.2005		-257.63	747.32
01.02.2005	Interest capitalization	10.52	757.84	28	7.16
01.03.2005		-257.63	500.21
01.03.2005	Interest capitalization	7.16	507.37	31	5.31
01.04.2005		-257.63	249.74
01.04.2005	Interest capitalization	5.31	255.05	30	2.58
01.05.2005		-257.63	-2.58
01.05.2005	Interest capitalization	2.58	0.00

If you require the control account in addition to the effective interest rate record, you can use the function module 'VERGLEICHSKONTO_AUSGEBEN_TAB'.

The figures of the control account are in the output table EDISP

********************************************************************

Regards,

Jain

[sourabh_muthreja]

Dear Gustavo,

Can u share the link of sap recommendation on XIRR , so that i can show to my client as proof

Regards

sourabh Muthreja

[former_member198450]

Hi Sourabh,

I just shared the SAP Note refereed by Gustavo.

Regards,

Jain

[sourabh_muthreja]

thanks  dear

can u share the web link of that

[former_member198450]

You need access to login, Please user id and password.

https://websmp230.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/sno/ui_entry/entry.htm?param=69765F6D6F6465...

[sourabh_muthreja]

what is this login id exactly   ?  u means to say authorized sap partner  can have ?

if niot, what is the path for that that i  can create the  my account

[former_member198450]

Hi Sourabh,

Yes, Please check with any senior consultant of your company, They might be able to provide, Incase you are on client location then check with them they shall have one.

Regards,

Jain