CLM - Lease In contract according to IFRS16 rules: full month interest?

[Cedric_Manhaeve]

Dear community,

We have car contracts which start on 25/10 for example. In the as-is tool, the following applies:

• The monthly lease payment is prorated. Thus calculation for October is based on the remaining 6 days.
• However, interest should not be prorated. Thus, the calculation for October is based on the full month (31 days) according to the IFRS16 valuation they have.

In SAP, I'm able to prorate the monthly lease payment, but the interest is also prorated to the remaining 6 days. The due date is 'in advance'.

How could we achieve the as-is scenario in S4HANA public cloud?

Many thanks,

Cedric

[OwenLiu]

Informed expert.

[nils_kronenberg]

Hi Cedric,

thank you for your question. 

Please have a look at note 2662137 and within that point 15. There can be a dedicated frequency rule assigned to the valuation rule.

Furthermore it can generally be set in the valuation rule configuration. Additionally we also offer an extension in the cloud to set interest behavior (please see in APP Custom logic the BADI BADI_RECE_VALUATION_PARAMETER).

Thank you and kind regards

Nils

[nils_kronenberg]

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[Cedric_Manhaeve]

Hi @nils_kronenberg,

Thank you for your guidance. I investigated our options in configuration and development and I have some additional questions on this topic:

1. In the configuration, I can adapt the valuation rule and corresponding valuation type (eg Balance-Sheet Capitalization). However, I cannot find the configuration to adapt the interest calculation method or any other related settings to interest. Could you provide me the SSCUIs involved?
2. Regarding the Badi, I want to make sure I understand the options before testing anything here. Default is 00 Annual interest settlement, but would 01 monthly interest settlement have any effect for our purpose?

Best regards,

Cedric

[nils_kronenberg · Accepted solution]

Hi Cedric,
thank you again for your question.
My previous answer contained the overall capabilities you have to either influence the valuation and interest capabilities.
But as stated in the note 2662137 (point 15), the frequency term of the valuation rule just considers 2 settings: Frequency and Calculation method
So the prorated setting is not considered as it makes no sense to calculate the interest payments non-prorated (for the whole month) as it is based on the net present value. Otherwise you would post more interests than intended.
Kind regards
Nils