Bank charges splitting month wise in a treasury deal

[Former Member]

Hi,

Im creating a deal with 55A-200 (Short term loan) for one year duration, wherein i want the bank charges to be split eqaully evry month.

For ex: I borrowed loan amount of 1,000,000 for which bank charges in 12,000. I want this 12,000 to be split equally to 12 months (which is 1,000 per month). How to achieve this.

PLEASE EXPLAIN ME IN DETAIL.

Regards

[JonathanEemans]

Hi,

Do you want to want to split in 12 different payments? Or do you want to do one payment and accrue the cost over 12 periods?

Best regards,

Jonathan Eemans

[Former Member]

Hi Jonathan,

Can you please explain me in detail. In case of posting the charges on monthly basis (Not accrual) how to achieve this. I dont think we need to do config for this. please correct me if im wrong.

Right now im assigning bank charges flow (1901) under other flow tab. now i want to segregate the expense to each month. please tell me how to do that. if you could explain me step-by-step process that would be great.

Appreciate your help.

thanks,

[JonathanEemans]

Hi,

I haven't came across this requirement. But maybe someone else on this forum has...

Best regards,
Jonathan Eemans

[JonathanEemans]

Hi,

In order to post one other flow for bank charges and accrue the cost over a certain period, you do the accrual/deferral setup as for any other flow.

IMG PATH assign flow types: Financial Supply Chain Management > Treasury and Risk Management > Transaction Manager > General Settings > Accounting > Accrual/Deferral > Money Market: Define Accrual/Deferral

IMG PATH account determination for update types accrual: Financial Supply Chain Management > Treasury and Risk Management > Transaction Manager > General Settings > Accounting > Link to Other Accounting Components > Define Account Determination

Best regards,
Jonathan Eemans

[JonathanEemans]

The flow type for bank charges should be flagged as relevant for accrual/deferral.

[Former Member]

Hi Jonathan,

We have both options here.

Thanks,

Partheban