SAP Knowledge Base Article - Public

3219696 - Leap year not taken into consideration for interest calculation when creating interest rate instruments

Symptom

When creating interest rate instrument through app Create IR Instrument, the interest calculation based on number of days does not consider the days for leap year.

Environment

SAP S/4HANA Cloud

Reproducing the Issue

  1. Create interest rate instrument through app Create IR Instrument.
  2. The number of days for interest calculation does not include the the days for leap year.

Cause

The calculation method used when creating interest rate instrument does not consider leap year for interest calculation.

Resolution

The respective interest calculation method needs to be used to consider leap year for interest calculation. The interest calculation method specifies the procedure for counting the days for the interest calculation. This is defined by a quotient of days method and base days method. This method can be used to determine how the time of year between two points of time on the Gregorian calendar is calculated. The following methods are available:

  • 360E/360
  • 360E/365
  • 360E/actY
  • 360/360 (ISDA - International Swaps and Derivatives Association)
  • 360/365 (ISDA)
  • 360/360
  • 365/360
  • 365/365
  • act/360
  • act/364
  • act/365
  • act/365.25
  • act/366
  • act/365P
  • act/actP (ICMA - International Capital Markets Association)
  • act/actY (ISDA)
  • act/actE (AFB - Association Francaise de Banques (French bank association))
  • act/actEP (AFB)
  • act/365L
  • act/365Y
  • actW/252 (W - working days)
  • act/act[M] (M - monthly)

           The base days correspond to the number of days in a month. This interest calculation method is suitable for interest rates that apply per month (p.m.) instead of per year (p.a.).

  • actW/actW[M]

           The base days correspond to the number of working days in a month. This interest calculation method is suitable for interest rates that apply per month (p.m.) instead of per year  (p.a.).

See Also

Create IR Instrument

Keywords

Create IR Instrument, interest calculation method, interest calculation, leap year, interest rate instrument , KBA , FIN-FSCM-TRM-TM , Transaction Manager , Problem

Product

SAP S/4HANA Cloud all versions