Objective-Amortization of Discount on Term Loan with Payout: We are
using TPM44 to defer discount through Other flows since business wants to
manage Debt and Discount separately.
Implementation Scenario- Discount amount is put in “others flow”.
Let’s
say on a loan of 100000, for 1 yr period discount is 20000, this is being
amortized linearly in this tenure.
Deferral/Amortization of discount on months’ end (20000/12) isdeferred using TPM44
every month.
Issue-Now, when a principal payout happens, let’s say 30000 The
pay down on principal is not decreasing the amortization balance (here, 14000)
by the same %.
Creating another “other flow”
for the remaining discount amount is not effecting net amortized amount.
Please help for the same.
Bluesky
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