Reference Interest rate selection for 55A

[Former Member]

Hi All,

I have created a deal (55A - 200) where in i have given reference interest rate for interest calculation for the loan i have taken. after filling in all the information, i went to cash flow tab to see the overview of my transaction, but there for all nominal interest rate posting status is showing as "Rate/Price not adjusted for flow", because of this i couldnt able to run TBB1.

But when i double click on the interest line item, it has picked the correct interest rate from OB83 for the reference interest rate i have given.

Im not getting the purpose of TI10 and TJ05. All i need is, i want my deal to pick interest rate from OB83 while posting TBB1 for the given due date.

In "company code additional data" settings, I have maintained Variable interest as "Update with current interest rates". please tell me whether it is a correct one to meet my above requirement ? Also its purpose.

Appreciate your response.

Thanks,

[JonathanEemans · Accepted solution]

Hi,

When financial instruments use reference interest rates, it’s necessary to enter interest value on key dates. This process is called interest rate adjustment or interest rate fixing. There are four possibilities to fix reference interest rates in SAP:

• Manual fixing for one transaction using transaction TI10;
• Manual entry with automatic fixing using transactions JBIRM / OB83 and TJ05;
• Automatic entry via Excel with automatic fixing using transaction TBEX and TJ05;
• Automatic data feed via data provider with automatic fixing.

If the rate has been entered for your variable interest rate via JBIRM / OB83, you should still execute TJ05 to fix interest rate in your deals.

Best regards,
Jonathan Eemans

[Former Member]

HI Jonathan,

Yeah if i go to TI10 and give the interest rate 31st Jan and save the entry, status is getting updated to Fixed. But after that if i go to cash flow of my deal and check the percentage for the interest line item for 31st Jan it is still appearing as 8.75% and the posting status is appearing as not ready for posting.

As you said, if we are fixing the variable interest rate for every month in TI10, then why we are using OB83?

what is the difference between TI10 and OB83 and TJ05 ? Im super confused now.

If possible please explain the whole process from very first to the end.

like how interest is being picked ?

on what scenarios it is going for OB83 / TI10 ot TJ05 ?

What is the role for maintaining the interest settings in "Company code additional data" ?

Really appreciate your response.

Thanks,

Partheban.S.V

[JonathanEemans]

Hi,

In customsing transaction 'Company code additional data', the planned Planned Record Update Strategy For Variable Interest Rate can be set. The following strategies are available:

• Zero update
  Flows whose interest rates have not yet been adjusted are assigned 0.
• Update with interest rates maintained automatically
  The values of flows whose interest rates have not yet been adjusted are calculated on the basis of the interest rates that were determined by automatic interest rate adjustment.
• Update types with interest rates maintained manually
  The values of flows whose interest rates have not yet been adjusted are calculated on the basis of the interest rates that were determined by manual interest rate adjustment.
• Update with current interest rates
  The values of flows whose interest rates have not yet been adjusted are calculated on the basis of the most up-to-date interest rates, irrespective of whether these were determined by automatic or manual interest rate adjustment.
• Update with interest rates maintained automatically/manually
  The values of flows whose interest rates have not yet been adjusted are calculated on the basis of the interest rates that were determined by automatic interest rate adjustment. If no interest rates were adjusted automatically, then interest rates are used that were adjusted manually.Note: This planned record update strategy is best suited in situations where automatic interest rate adjustment is generally used, but in exceptional cases, manual interest rate adjustment is also possible (for example, for an unusual reference interest rate).

I've used the strategy 'Update with current interest rates' in most of my Treasury projects. It avoids that you have to maintain a rate for that specific date. Check-out the following blog with more information and examples how the system determines planned interest rates for variable interest reference: https://blogs.sap.com/2016/05/12/how-the-system-determines-planned-interest-rates-for-variable-inter...

When financial instruments use reference interest rates, it’s necessary to enter interest value on key dates. This process is called interest rate adjustment or interest rate fixing. There are four possibilities to fix reference interest rates in SAP:

• Manual fixing for one transaction using transaction TI10;
• Manual entry with automatic fixing using transactions JBIRM / OB83 and TJ05;
• Automatic entry via Excel with automatic fixing using transaction TBEX and TJ05;
• Automatic data feed via data provider with automatic fixing.

Regardless of the option chosen, you can always check via transaction TI10 if variable interest rate is fixed for a certain period of a specific deal.
If a deal was already fixed and you want to change the interest rate, you have to change usng transaction TI11 (Change) or reverse the interest rate fixing using transaction code TI37 or TJ05_REV.

Best regards,
Jonathan Eemans

[Former Member]

Hi Jonathan,

Thank you for your response.

My first interest calculation date is 31st Jan 2019. I have maintained interest rate in OB53 for my ref. interest rate valid date from 31st Jan. after that i ran TJ05 to check my entry it is showing error for 28th Feb 2019. which means 31st Jan interest is good for posting right ?

So i went and ran TBB1 it is not picking the 31st interest for posting. still it is not picking the interest for posting please refer below.

Created deal and its cash flow detail is showing 8.75 percentage for interest calculation as on 31st Jan.

But reference interest rate which is used in above deal (ICIC_STL) is having interest rate maintained in OB83 of 8.74% as on 31st Jan 2019.

Now I ran TJ05 to fix the interest rate for 31st Jan 2019 for my deal and it has fixed i believe why because the error message is populating for Feb month. (Correct me if my understanding is wrong).

Since error is not appearing for Jan month i tried to post Borrowing and interest for Jan month in TBB1, but it has picked only borrowing not the interest.

Please help me to understand how it works. Basically im a beginner in this area, so if you could give me basic understanding of this interest picking process that would be really helpful.

Also if possible please reach out to me through parthi.svp90@gmail.com so that we can discuss more in detail.

Thank you.

[JonathanEemans]

Hi,

Via transaction TI10 it's possible to see if variable interest rate is fixed for a certain period of a specific deal.

Best regards,
Jonathan Eemans