Hi Friends,
Could you please let me know your views on how to go about the below scenario?
We map the Debts using Interest Rate Instrument Product type 55A in SAP.
Even though interest is calculated monthly the payment is done irregularly. Therefore we also accrue monthly interest and post to GL thru TBB4.
So for every interest flow I have an accrual flow.
Now the requirement is if there is a partial principal pay down during a mid-month, system calculates interest upto to that date on entire base amount and then for the remaining period on the reduced base amount. This is acceptable for us in most cases.
But there are cases where they would make the payment for the past accrued periods only on the principal which is being repaid and keep accruing on the unpaid principal amount.
For example: Interest per month is $100
Months accrued April-May
A partial principal amount was repaid in June which brings down monthly interest to $60.
So when we run TBB1 system posts $100+$100+$80 ( $50 for 15 days+ $30 for the balance 15 days) in June.
Business wants to pay $120 (40*3) for June when the partial principal amount was repaid.
Could you please let me know is it possible to achieve this , if so how?
Thanks,
vamsi