Executing APYE Calculations 

Use

The average percentage yield earned (APYE) calculation determines the overall success of the used capital, measured as the actual interest rate. You can assign an APYE calculation method to an account in account processing on the Settlement or Effective Settlement tab pages.

The specification of the APYE rate is a required entry on the bank statement. If a bank sends a periodic bank statement to the customer, the statement must contain the APYE for the last statement period (settlement period), and must show an amount for the APYE of each interest posting.

The APYE is an annual percentage that reflects the relationship between the actual interest earned in the statement period and the average daily balance in the period. If a period other than the statement period is used for interest calculation, then the APYE is calculated based on this other period.

Integration

The APYE calculation method can be activated or deactivated on product level.

The system uses the APYE calculation method that is defined in the contract for the time of the Next Execution Date

The result of the APYE calculation is output in the Calculated Effective Interest field of the settlement results.

The APYE calculation method is independent of the condition settings and the interest calculation methods defined there, and is also independent of any condition group change that may have taken place during the settlement period.

Prerequisites

In Customizing for an account product , you have selected an APYE calculation method under the feature attribute Settlement or Extended Settlement and have activated the product attribute under Account Management ® Product Management ® Product Definition ® Account Products ® Create Account Product.

You assigned a APYE calculation method to the account in account processing on the Settlement tab page of the SAP Easy Access screen under Account Management ® Account ® Master Data of Account ® Create Account.

Scope of Functions

The APYE is calculated using the following formula:

      APYE = 100 [(1 + Interest Revenue/Balance) ^{365/No. of Days in Period} -1]

An APYE calculation method is characterized by a specific Interest Settlement Frequency for Exponential Interest For more information, see the F1 Help.