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Splitting Interest from Installment calculation

mohammad23sap

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on 2023 Aug 30 4:51 AM

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- Treasury Management

Hi,

We are a funding organization and we use SAP to replace our core business ERP. The normal case in any project that we fund as a loan, is to have both interest and installments calculated in the same billing cycle (same due date). However, there is an emerging need to have a separate billing cycle (different due dates) for interest and installments. So instead of calculating interest and installments due on the same date (lets say bi-annually on Jan and July), we need to calculate installments due (only installments without the interest) on Jan and July, while interest (only interest) will be calculated on Feb and August.

In both cases the system will use the withdrawal balance of the loan in order to calculate which installments are due, and will use the withdrawal balance to calculated the interest due, but instead of combining this calculation on the same date (billing cycle), the need is to separate them in two different dates (cycles).

Can this be done using standard configuration?

Regards,

mezeshan

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2023 Sep 04
2:19 PM

mezeshan

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2023 Sep 02
9:50 PM

mohammad23sap

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2023 Sep 03
4:40 AM

Thanks Muhammad for the answer.

I can see there is one calculation date available which means that the system will calculate both interest and installment due at the same time regardless of the posting date. What I am looking for is calculating and posting interest in one date (without taking installments in consideration), and calculation and posting installment due in one date (without taking interest in consideration).

For example, a funding organization wants to give a loan that has Jan and July as its interest flow due dates, while Feb and August as its installment due date. In this case:

- Jan cycle will calculate and post Interest

- Feb cycle will calculate and post installment only (without calculating interest from Jan to Feb).

- July cycle will calculate and post interest from Jan to July

- August cycle will calculate and post installment only (without calculating interest from July to August).

and so on...

Is this achievable using SAP standard or with the idea you've thankfully shared?

Regards,

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