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Lease interest is calculated monthly, although Frequency Rule is set to calculate on a yearly basis

silvathais
Explorer
0 Kudos

Hello everybody,

We are currently testing Lease-in contracts with annual payment and have noticed that the interest is calculated monthly, although it is supposed to be calculated annually.
However, if we change the payment to "daily" in the frequency rule, the interest is calculated on a daily basis. So only the rule "yearly" does not work.

We have tested the scenario in another system and the annual calculation works correctly in there. But we could not find any difference in customizing between the two systems so far.

Has anyone also faced this issue or does know what might be the reason for that?

we are working on SAP S/4HANA 2020.

Please refer to the screenshots below.

Thank you in advance.

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JFPC
Participant
0 Kudos

Hello,

I am not sure what you did because I see a interest cash flow with yearly amounts if I enter the frequency like this.

JFPC_0-1708699585024.png

I did not use an additional frequency term but the standard one. In the valuation I also did not specify another frequency term.

JFPC_1-1708699643183.png

The interest cash flow looks like this.

JFPC_2-1708699699752.png

This example comes from a SAP S/4HANA Public Cloud 2402 release. However I also seen examples like this in an Private Cloud or On-Premise system.

Maybe you can try to use the standard frequency. I guess you also have to pay the supplier on a yearly base so there is no need to differentiate in the frequency terms.

Best regards,

Jeroen Pasman

silvathais
Explorer
0 Kudos

Hello Jeroen,

Thank you for your reply.

Unfortunately it doesn't work either with the standard frequency.

silvathais_0-1708701284485.png

silvathais_1-1708701360033.png

Interest keeps being calculated on a monthly basis:

silvathais_4-1708702007386.png

 

If I do it in a daily basis, it will work:

silvathais_3-1708701903130.png

 

I was hoping that someone would have faced this issue before, but I'm considering issuing a support ticket.

 

Regards,

Thaís

JFPC
Participant
0 Kudos

Hi Thais,

Then I am afraid you will have to report a message to SAP. What you can try but it is also not a correct solution is set the frequency to 12 months and the amount reference to cyclical or yearly amount.

Best regards,

Jeroen