Entering content frameProcedure documentation Condition Details: Interest Rate Adjustment

Use

You need this condition type if you enter a variable interest rate. Two types of entries are required for mapping a variable interest rate:

  1. You specify the underlying reference interest rate.
  2. When you create a financial transaction, the interest rate adjustment method PANF (= at start of period) is set as the default. To define another interest rate adjustment method, you use the Interest rate adjustment pushbutton to go to the detail view.
  3. In the Condition Details Screen: Interest Rate Adjustment screen, you can specify how frequently the variable interest rate should be recalculated and on what day you want the underlying reference interest rate to be set.

Prerequisites

To ensure the availability of current data for interest rate fixing, we recommend that you maintain the reference interest rate table regularly.

Procedure

  1. In the Interest rate adjustment area, enter the first interest rate adjustment date.
  2. In the Interest rate fixing date area, you specify the shift rule for the interest rate fixing date and also the number of days by which this date differs from the interest rate adjustment date or the period end.

In the Update area, you enter the frequency with which the variable interest rate will be recalculated and/or become effective. You can choose from the following options:
    1. Interest rate adjustment relative to start of period
    1. Regular interest rate adjustment

      2. Interest rate fixing date relative to interest rate adjustment

    2. Single dates

Using single dates, you specify the dates on which you want interest rate adjustments to take place. The interest rate fixing date is relative to the interest rate adjustment date.

Choose Edit ® Single dates. Enter the required interest rate adjustment dates.

Note In the case of the regular update rule, specify in the Additional information update area the frequency in which the update should take place - days or months.

In the Additional information working day area, specify the calendar you want to use to determine the dates.

Notes for Processing

Note   For more information, see Structure link Interest Rate Adjustment.

Leaving content frame