commercial paper sale

[Former Member]

Yesterday i asked for the below issue. I got the solution and my next doubt in this is on maturity (27-06-2016) what is the procedure. to get the below entries. config part i will do. what is the end user part. will anybody explain please.

In Treasury Commercial paper client is asking entries like

1. Bank a/c               Dr          490000  (example)

    Commercial paper  Cr          490000        

and

2. Discount on C P  Dr               10000

    Commercial paper  Cr             10000

on starting date say 27-04-2016

let us say total rs 500000/-

and on maturity date  say 27-06-2016

entries

Commercial paper     Dr           500000

Bank                        Cr           500000

Interest on CP          Dr             10000

Discount on CP        Cr             10000

can it be done Commercial Paper, as if i select Nominal Value in Transaction type, I am getting full amount in cash flow and interest on CP 10000/-with sign.

Please advice

[former_member198450]

Dear Srikanth,

As a standard process below is possible but on creation you want to accommodate discount. Try to use other flow type for the same.

Bank a/c               Dr          490000  (example)

Commercial paper  Cr          490000       

Other flow type: Use other flow type and try, It might work out. I have not tried this so far.

Maturiy

Commercial paper     Dr           500000

Bank                        Cr           500000

Interest on CP          Dr             10000

Discount on CP        Cr             10000

Regards,

Jain

[Gustavo_Vazquez]

Hi Srikanth,

I don't understand the question.

Check if changing "NPV Calculation" helps. Here are some screenshots of 53A-100

Kind Regards