Creating a Loan Contract

Use

Choose one of the following alternatives:

Create newtransaction data for a contract

The steps for creating a new contract are described below.

Copy transaction data from a sample contract

If you want to use this option, you must first have created sample contracts. You can do this by using the Sample loan function.

Procedure

In the SAP Easy Access menu choose Accounting → Bank Applications → SEM Banking → Datapool → Bank Transactions → Loans → Contract → Create.

On the initial screen, use the parameter settings to define the environment data for the single transaction.

Enter the Company Code.

Enter a Loan number (if you are using external number assignment).

If you are using internal number assignment, the system assigns a loan number.

Choose a Product Type

To assign a partner to the loan, choose Enter

If you have already entered your partner in the system for another reason, you can enter the partner ID to assign that partner to the loan.

Confirm your entries ( Enter ) to reach the next screen, Create Contact.

On the upper part of the screen you will see a header for the loan, which is automatically filled by the system. The lower part of the screen contains the area that you need to supply with data. It comprises the tab pages Basic Data and Conditions . Which fields you need to supply with data depends on the field selection you carried out in Customizing ( SAP Banking → Loans Management → Transaction Management → Condition Types → Define Condition Types or Transaction Management → Product Types → Company Code-Dependent Settings for Product Type ). For the purposes of costing and evaluation within SEM Banking , you must enter at least the following data:

Tab Page: Basic Data

Basic Data

Contract currency

Commitment date

The commitment date may differ from the date to which the cash flow is discounted (market interest date).

This graphic is explained in the accompanying text.

You can only save or check the contract once you have filled the required fields in the Basic Data and Conditions tab pages.

Tab Page: Conditions

Basic Data

Commitment capital

Disbursement rate (in percentage)

This graphic is explained in the accompanying text.

You can use this to can depict premiums and discounts.

Discount determination

Repayment type ( optional entry)

The repayment type Annuity takes into account all partial disbursements per period, whereas the repayment type Calc. Annuity is based on the disbursement of the entire contract capital at the start of the item repayable by annuities. In addition to partial disbursements, this repayment type does not take unplanned repayments of capital into account.

This graphic is explained in the accompanying text.

The repayment type Government Perpetuals is not supported.

Term

The period of time in which the loan is valid.

Fixed-rate period

You have to enter the fixed-rate period end.

The cashflow, the scale statement for the determination of effective interest, and the interest and repayment plan are constructed on the basis of the fixed-rate period. In addition, this period defines the validity period of the condition items.

You must always enter the term of the loan to ensure sensible valuations for the cash flow.

If you enter a date for the end of the fixed-rate period, then the cash flow will only be constructed up to this date. Otherwise the system uses the end of the term (only up to a maximum of 20 years).

Interest calculation method

This graphic is explained in the accompanying text.

SEM Banking does not support the interest calculation method actW/252.

Effective interest method

By choosing the function Effective interest you can let the system calculate the effective interest.

This graphic is explained in the accompanying text.

Loan transaction costing within SEM Banking is carried out regardless of the settings you selected and always according to the AIBD/ISMA procedure.

Condition Items

The settings you carried out in Customizing permit the entry of individual condition types.

Maintaining Condition Items

The entries you made in Customizing for the condition group (SAP Banking → Loans Management → Transaction Management → Condition Types → Define Condition Groups) determine the condition items that the system displays when you create a new loan. If you set a condition type on hide in Customizing, it does not appear. You must bring this condition item into the entry field by choosing Insert additional items .

If a condition item is not filled in, then the system will no longer display it in change mode. However, you can insert it once again by using Insert additional items .

Condition items are always in the same currency as the contract.

A condition item is effective as of its validity date ( Valid from ).

The effectiveness of a condition item is dependent upon the underlying calculation category of the condition. Nominal interest, for example, is only charged as of the first value date. The effectiveness of a condition item ends on the Valid from date of the successor item with the same condition type, for example, at the end of the fixed-rate period at the very latest. The first condition item is valid until the Valid from date of the second condition item.

This graphic is explained in the accompanying text.

To depict a scaled interest rate, for example, go to the relevant condition item and choose Insert additional items . Then enter the data for the following interest period.

This graphic is explained in the accompanying text.

For example, in order to stop an interest payment one year before maturity, insert a new condition item with the same condition type as a zero condition. Enter the Valid from date of the zero condition and select the indicator for the zero condition in the field Condition form .

Cash Flow

Choose Cash flow.

The cash flow contains all flow records (actual and planned records), in chronological order, that were generated by the conditions of a financial transaction.

By calling up the cash flow you are able to check whether your entries store the required flow records.

To view the scale statement of the effective interest calculation choose Extras → Effective interest.

This graphic is explained in the accompanying text.

You can generate different views for cash flows (end of period, due date, etc.) by choosing Select

Payment Plan

By choosing Extras → Payment plan you are able to display or print documentation for the course of the loan.

The payment plan is an interest and repayment plan. In the header part it contains general loan data as well as individual condition items. In addition, all activities in the fixed-rate period and their composition of interest payments, repayments and other payments as well as the outstanding balance are shown.

If you do not want to enter any collateral choose Save .

Contract/Effective Interest

Market Interest Date

Result

The master data and the conditions of the loan are recorded under a contract number.

This graphic is explained in the accompanying text.

The transactions are managed as contract offers or contracts, for example, depending on the statuses you have assigned the product types within Customizing (SAP Banking → Loan Management → Transaction Management → Product Types → Company Code-Dependent Settings for Product Type ). To evaluate loan transactions in the SEM components, they must have the status contract.