How to calculate your loan and with interest?

Calculate the effective interest rate according to the uniform method. You can calculate conditions *, determine the monthly rate, or compare the cost of loans that are eligible for you.

Damnum is the difference between the amount received (amount paid out) and the repayment amount of a loan. Compare now different variants of loan repayment. With this information, our tools can calculate the current terms of each loan.

Interest on arrears


You can use this functionality to calculate and post interest payments for loan items that are open or open and late on the key date of the calculation. You can only use this functionality for loans based on the product types Mortgage (300), General Loans (330) or Consumer Loans (340). Batch input is not possible for this functionality. However, you can use interest on arrears for bulk processing of loans.

It is linked to the following functional scope: You can use this functionality in the work center for the business transaction. Processing contracts for the product categories Mortgages (300) and General Loans (330):

For loans of the product categories Mortgages (300) and General Loans (330), you can evaluate the following characteristics under Basic Data -> Control: In the processing function for loans of the product category Consumer Loans (340),

You can evaluate the following features under Creditworthiness: You can set up and release document-level backlog interest locks in the account statement processing functions.

Calculating interest on late payments

Calculating interest on late payments

When calculating interest on late payments, the documents selected in this way are no longer (or again) taken into account. For this measure, own correction documents are written that are visible in the loan.

You can use this functionality to view the calculations for the interest on late payments that you have carried out with the Calculate Interest on Arrears application in the business object of the business transaction. The calculation of default interest is possible in the operations listed below if you have made the necessary customizing settings.

No separate business transaction of default interest type is generated, but you can output the interest on the Additional flows tab page in the operations listed below.

If a further business transaction of the overdue interest type is created for the loan, however, the overdue interest can be viewed on the Overdue Interest tab.

Business Transactions for Loans: Consumer Loans 


You can use the substitution function to calculate interest due dates. The calculated default interest is included in the replacement cost. However, no separate business transaction of the default interest type is created for this purpose.

However, if a further business transaction of the type of default interest is created for the loan, you can also calculate the calculated default interest on the tab page.

This functionality is not visible in the Workplace for Business Operations but in the Consumer Loans (340) processing function. The present functionality is part of the release process. With calculated and booked default interest, you can trigger correspondence. In order to be able to use this functionality, you have carried out the following Customizing activities as part of Customizing for Credit Management:

In the GFI activity Define Transaction Types, you have defined transaction types for the debit and refund of interest on arrears as well as for incoming and outgoing payments.

Default interest rate


All movement types for the default interest rate must be assigned the movement category Business Transactions Interest on Arrears (VEZ1). You have created a transaction type with which you want to post due to date interest as the target transaction type. As credit flow types, you have defined activity types with which you can credit interest due dates.

You have assigned countermovement movements to the Assign Countermotivities. You have defined the account assignment for the assignment types for further processing of the quantities under Define Account Determination Functions.

In the GFI activity Define Calculation Types, you have defined costing types for the interest calculation of interest on arrears payments for each group of movement types.

In the subscreen Assignment of Activity Types to Condition Communities for Each Application, you have assigned the application subfunction Business Transactions Interest on Default (570) to each of the available activity types.

In the Assign Condition Types to Condition Communities for Each Application subscreen, you have assigned the condition types required for the default interest rate. In the GFI activity Define Template, you have defined templates for the determination of interest on arrears for each individual article.

Under Define General Control Data you have defined which tab would be available in the application. Under Define Pricing Procedures, you have created your pricing procedures and assigned properties for each costing sheet for costing and default interest posting.

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