SAP TRM: Separation of loan principal and interest payments

[TL3]

Hello everyone,
we are currently facing the following challenge in our public cloud system. 

Problem:
Currently, SAP TRM can only post to one account. When the account "Liabilities to Affiliated Companies" is used for payments, the interest income is also posted to this account instead of to "Receivables from Affiliated Companies." It is not possible to differentiate between payment liabilities (loans) and receivables (interest).

Current Workaround:
Manual rebooking of liabilities to receivables.

Desired Solution:

1. Enable differentiation between loan principal and interest payments.
2. Post the loan principal to the account "Liabilities to Affiliated Companies."
3. Post interest payments to "Receivables from Affiliated Companies."

This would eliminate the need for manual rebooking.

Process description:
First, we create a loan using the transaction "Create IR Instrument (TM_51)" with the Product Type "55I-Interest Rate Instrument - INT" and the Transaction Type "100-Invest." The Flow Type "1100-Principal Increase" and Condition Type "1200-Nominal Interest" are selected under the Interest Structure. The Condition Type "1120-Final Repayment" is used under the Repayment Structure.

In the next step, we use the transaction "Fix, Pay and Post Flows - TBB1" to post the loan.

Questions:

Is there any way we can get the desired result, which is a separation between the loan principal posting and the interest payments, without additional manual postings? Can we trigger two separate postings from TBB1? Is there any customizing that would allow us to do this?

Thank you for your support.

Best regards,

Tobias

SAP S/4HANA Cloud Public Edition 

[OwenLiu]

Added Finance tag, please remove other tags.

[OwenLiu]

Informed expert.

[HenrikeGrötecke]

Thanks for your question. It has been forwarded to the experts.

[Jerry2]

Because the cash flow 1100 Principal and 1200 Norminal interest are linked to different update types. It's easy for you to post to different GL accounts for principal posing and interest payment posting. I simulate your case in our public cloud internal system. 

Simulation in internal system:

1. Create an intercompany transaction of 55I;

Check cash flows:

1100 Principal Increase

1200 Norminal interest

1120 Final repayment

Please ignore 1905 and 1906

2. TBB1 do the posting for Principal;

GL account for principal: 12021200 Short Term Investments, Affiliated, Consolid.(TRM)

3. TBB1 Post interest

For received cash interest, the GL account is 70200200 Interest Income, Affiliated, Consolidation(TRM)

This way the Principal and interest payment are using different GL accounts.

In public cloud we use different account symbol for Principal(1) and interest income (4.1.1). You may refer below settings and do the adjustment accordingly to meet your specific requirement. 

IMG Settings:             

KONTENFINDUNG Define Account Determination for Treasury and Risk Management

Cash Flow	Update type	Posting spec	Posting spec description	Posting Key(D)	Account Symbol(D)	Posting Key(C)	Account Symbol(C)
1100 Principal Increase	MM1100-	11100	Position to Bank Clearing	40	1	40	3
1200 Norminal interest	MM1200+	13100	Bank Clearing to Interest Revenue	40	3	50	4.1.1

Posting specs:

Assignment of G/L Accounts:

[HenrikeGrötecke]

Hi, Tobias,

The flows from principal and interest are using different flow types and update types, and should not be posted into same GL Account.

If this is not the case in your tenant, I would suggest you to raise an OSS message so that our colleague could further check the configuration in your system to guide you to achieve that.

Would it be ok for you?

Kind regards

[BinWangSAP]

Hi, Tobias,

The flows from principal and interest are using different flow types and update types, and should not be posted into same GL Account.

If this is not the case in your tenant, I would suggest you to raise an OSS message so that our colleague could further check the configuration in your system to guide you to achieve that.

Would it be ok for you?

Thanks.