This function determines the new book value for a securities position by calculating the net present value on the key date. It compares the net present value calculated with the current book value in the system and generates the corresponding interest capitalization flow for the difference. This function is useful for all security positions that have been assigned a position management procedure allowing for amortization.

The function calculates the net present value of the bond on the key date and generates the corresponding amortization flows, which increase the book value of the position.

You can make a test run for the amortization, even if the required entries have not been made.

The posting log tells you which postings have been performed. You can see the document number, the security ID numbers involved, the G/L accounts and the amounts posted for each posting activity.

A reversal function is available. You can find the function in the securities area of the application menu under Accounting ® Closing operations ® Key date valuation ® Reverse amortization.

You can assign position management procedures in the IMG for the securities area by choosing Transaction and Position Management ® Basic Settings ® Assign Position Management Procedure.