Repayment

Use

You use this function to calculate the repayment amounts incurred per period for a loan you have taken out.

Integration

The function described here is included in the role concept for characteristics and key figures, which provides suggestions for filling equivalent characteristics and key figures within a planning area. For more information, see Functions for Balance Sheet Planning.

Prerequisites

Your data is prepared in the form of an account model, therefore, the planning area it is based on must contain a characteristic, the values of which correspond to planning items. SAP delivers such a characteristic as Business Content ( 0SEM_POSIT).

Features

When setting up the function, you assign suitable characteristics and key figures of the planning level to the planned characteristic and key figure roles.

Depending on the characteristic you use to define the time reference of the function, the system dynamically requests you to fill the roles differently: For example, if you choose fiscal year as the time reference, the system requests that you enter characteristics for the start and end year of the loan repayment period. If you choose the seven-character period for the time instead (characteristic 0FISCPER), then you must also assign characteristics for the start and end period.

When defining a parameter group, you determine the planning items to be used for the loan total, annuity, repayment, and interest paid. In addition, you enter the interest rate for the loan.

When you execute the function, the system calculates the annuity according to your entries (total of interest and loan repayment) for every period of the depreciation duration you defined. When the annuity remains the same, the weight moves increasingly to the repayment share as the interest amount to be paid for the remaining debt becomes less and less due to the continued payment.

The function generates new data records according to your settings every time it is executed. If data records already exist for the selected characteristic selection, their values are added to the values of the new data records, which causes excessive results. Therefore, before executing the function, you must make sure that none of those data records exist yet (the simplest way to do this is using a delete function).

Example

In fiscal year 2003, you take out a loan of EUR 100,000, which you want to completely repay in annual installments from 2004 to 2008. The interest rate is 6.5%. The system calculates an annuity of EUR 24,063 for this, which is divided over the 5 years of the repayment period as follows:

Annuity Elements in the Repayment Period

Year	Annuity	Repayment	Interest Paid
2004	24,063	17,563	6.500
2005	24,063	18,705	5.358
2006	24,063	19,920	4.143
2007	24,063	21,215	2.848
2008	24,063	22,597	1.466