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amoritaization of interest rate instrument

sourabh_muthreja
Participant
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Hi Dear,

pls give me brief idea of amoritization , and what will be accounting entries for that ?

Thanks

Accepted Solutions (1)

Accepted Solutions (1)

prasadraju
Participant
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Hi Sourabh,

Amortization is the distribution of the difference between the acquisition value and the repayment amount over the term.

A new book value is determined for a position on the valuation key date by calculating the net present value on the key date and generating corresponding interest capitalization flows.


check the below links.Hope it will help you.


Example: Premium/Discount for an Interest Rate Instrument - Valuation - SAP Library

Amortization for Money Market Transactions - Valuation - SAP Library

Thanks,

Prasad

sourabh_muthreja
Participant
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what is the T.code of that ?

former_member198450
Active Contributor
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hi,

TPM1

Regards,

Jain

Answers (0)