Re: Issue in Interest capitalization

Hi Marie Wild,

Thanks for the reply!!!!

We have a loan with interest rate instrument in TRM which is using the MIBOR rate. These rates will be fluctuating on daily basis. As of now we are calculating the interest rate in excel on daily basis and posting (capitalise interest) the same in SAP manually on end of the month.

But now we have configured a product type with interest rate instrument and updated the MIBOR rate in SAP. System is picking the MIBOR rate and calculating the capitalized interest properly.

But our concern is

1. We need to repay the capitalized interest periodically.i.e on every month end.
2. System has to post only 1 entry per month i.e consolidating the entire capitalized interest for the month.

As you have mentioned in the reply that as an work around we can enter these capital changes 'manually' as to lower the base amount for interest calculation. But when I checked in my transaction the system is allowing me to change only the interest amount not the base amount, Its in gray mode.

Please let me know how to proceed further.

Regards,

Venkat