Hello,
We have a configured via money market interest rate instrument a loan of which the principal amount can increase or decrease.
In case of a DECREASE, the borrower must pay to the lender also the accrued interest on the principal amount repaid. There is a specific flowtype for this.
The problem is that once you have done such a decrease, you have no longer the possibility to RE-INCREASE the loan amount again.
SAP gives the following blocking message : "early repayment with other changes in principle not allowed".
Is this a customization issue or is there some underlying financial mathematical problem which would make it impossible to do the interest calculation in case there were later again a non scheduled decrease in principal amount (and hence accrued interest to be paid again)?
Thanks for your help.