Hi Experts,
Can any one give an importance of balance interest calculation with respect to treasury module. Some one suggested to use this approach to calculate utilization fee against facilities.
As per the scenario, the total facility is 1.6 Billion. Canada companies (3 series company codes) can use a maximum of 200 Million, US companies (1 series co.codes) can use a maximum of 500 Million, Non-US companies (4, 6 and 7 series co.codes) can use a maximum of 200 Million and Europe companies (5 series co.codes) can use a maximum of 400 Million.
The commitment fee (calculated on the unutilized amount) should be calculated as per 3 years (53.125%) and 5 years (46.875%) tranches. For ex: The total utilized amount is $ 601,586,722 and Non-utilized amount is $ 998,413,278 (1,600,000,000-601,586,722).
Unutilized amount of 3 years= 530,407,053.94 (998,413,278*53.125%)
Unutilized amount of 5 years= 468,006,224.06 (998,413,278*46.875%)
Commitment fee= 0.375% for 3 years and 0.625% for 5 years
Commitment value 3years= 1,989,026.45 (530,407,053.94*0.375%)
Commitment value 5 years= 2,925,038.90 (468,006,224.06*0.625%)
Total commitment value = 4,914,065.35 (1,989,026.45 + 2,925,038.90)
Monthly Accruals for posting=409,505.45 (4,914,065.35/12months)
Quarterly payment = 1,228,516.34 (4,914,065.35/4months)
We need to achieve this scenario in SAP treasury application.
I understand from someone that most of these can be met with standard SAP – using the “Balance Interest Calculation” functionality combined with some “custom ABAP” programming.
I wonder how can i use this approach and achieve the target.
Please guide me.
Thanks,