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Complicated depreciation

philippsathasivam
Participant
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516

Hello Experts,

i need to calculate the problem below. The investments get depreciacted each year by investment/duration. i am able to calculate the monthly depreciations with the sum function (SUM () OVER (PARTITION BY...). My Problem now is: how do i make PaPM stop the depreciation at 01.02.2023 for the first investment, when the depreciation is finished and the investment is fully depreciated. Because it will continue to write 20, instead of 10 (in the yellow area). What function i need for this, such that it will write 10 in the yellow area? Thanks for any help, Philipp

Accepted Solutions (1)

Accepted Solutions (1)

ZYT
Product and Topic Expert
Product and Topic Expert
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Hello philippsathasivam,

I'd like to propose following approach to solve your problem:

  1. To use Flow Generation function (e.g. type of Periodic Fixed Even Flow) to generate the future cash flows (depreciations) for all of your investments. - You would need an identifier to differentiate the investments.
  2. To join the generated cash flows with the original investment input data (column A, B, D in your screenshot) by date.
  3. To aggregate the result from step 2 to calculate the sum of depreciations for each period.

Alternatively you may also use Series Generation function (and some additional functions) to achieve step 1.

I hope it would be helpful.

Regards,

Zhiyi

philippsathasivam
Participant
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Hi Tang 🙂

thanks for your response. i will try that.

ZYT
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi Philipp,

you're welcome! I also tried it out in PaPM and would recommend to switch the order of step 3 and step 2. This one would be simpler and you even may achieve both of them in one join (explicit type). Aggregated the result from step 1 (removing redudant fields), then join it with the original input.

philippsathasivam
Participant
0 Kudos

Hi Tang again thx for your response, im now trying to implement the Funds Transfer Pricing Function. What are the settings i have to use for my problem. The userguide says nothing about that. What settings did you use ? Can you upload a screenshot of your settings ? In my example the Date is VALDATE and the field where the results shall appear is AMOUNT1. Are the Start Date and End Date, start Value/end value correct? how do i use an identifier? Best regards, Philipp

ZYT
Product and Topic Expert
Product and Topic Expert
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Hi philippsathasivam

See please the screenshots below for an exemplary approach. To each investment I assigned an ID and filter out the two investments 100 & 80 by the condition ID is not empty. The start value shall be the investment amount, and end value 0. Start date is the date in your data, end date can be derived from a formula by start date and duration. Period Unit in your case is 'M' - Month. Period shall be 1 - Monthly. You may also store such values in your input data and use them in the configuration.

BR, Zhiyi Tang

ZYT
Product and Topic Expert
Product and Topic Expert
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The result:

philippsathasivam
Participant
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Hi Tang, it worked! I was able to generate the cashflows and got them correct. Big thx to you ! You can also sum up the Flows with the following logic: SUM(ZEV_INVEST) OVER (PARTITION BY ZEV_DATE ORDER BY ZEV_DATE) and after that group over the date, you then get the same results. Another question concerning the identifier. (ZFLOWID): How exactly did you implement that ? Best regards and thx again, Philipp

ZYT
Product and Topic Expert
Product and Topic Expert
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Hi Philipp,

you may use an identifier from the investment. For instance, when your investment is corporate bonds, surely the code (e.g. ISIN code) of the corporate bonds may be the identifier. But actually the identifier would not be important in your case. You may also use the condition investment <> 0 to avoid producing redundant records in the result.

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