Repayment Settlement (SAP Library - Loans Management (FS-CML))

Repayment Settlement

Use

You use the condition type repayment settlement to enter types of repayment settlement other than immediate settlement.

Note

You can also use the repayment settlement to map the immediate settlement function. You can also do this by activating the Immediate Settlement indicator when you set up the Repayment condition item.

The following repayment condition types are available for repayment settlement:

Annuity repayment settlement
Installment repayment settlement
Repayment settlement

Prerequisites

You have entered the repayment condition item.

The Other Settlement indicator in the repayment item must not be set.

Procedure

Use the Insert Additional Items function to enter the condition type Repayment Settlement in the Condition Items section.

Enter the Effective from date.

Enter the frequency and the first calculation date.

Result

Interest is calculated for the incoming repayments according to the frequency you defined.

Example

Loan data:

Loan Amount 10 000.00 USD
Interest rate 0.5% per month
Interest payments monthly
Disbursement rate 100%
Monthly repayment installment 1 000.00 USD
Repayment settlement every 2 months

Resulting flows for the first 6 months:

Period	Repayment per period	Interest payment per period	Method for interest calculation (Interest calculation capital * 5/1,000)
1. Month	1 000.00 USD	50.00 USD	10 000.00 USD * 5/1000
2. Month	1 000.00 USD	50.00 USD	10 000.00 USD * 5/1000
3. Month	1 000.00 USD	40.00 USD	8 000.00 USD * 5/1000
4. Month	1 000.00 USD	40.00 USD	8 000.00 USD * 5/1000
5. Month	1 000.00 USD	30.00 USD	6 000.00 USD * 5/1000
6. Month	1 000.00 USD	30.00 USD	6 000.00 USD * 5/1000
...	...	...	...