3694927 - Understanding the behavior of flow type 1150 (–) capitalized interest in investment transactions

• The cash flow for flow type 1150 (–) Capitalized Interest is displayed with a negative sign, indicating an outgoing payment, instead of an incoming payment.
• This behavior is inconsistent with flow type 1200 (–) Nominal Interest, which is correctly displayed as an incoming payment.
• No error messages or error codes are mentioned in the case information.

SAP S/4HANA Cloud Public Edition

1. Create a fixed-term deposit product under the Investment category.
2. Assign flow type 1150 (–) Capitalized Interest to the product.
3. Check the cash flow for the product.
4. Observe that the amounts for flow type 1150 are displayed with a negative sign, indicating an outgoing payment.

• The negative sign for flow type 1150 (–) Capitalized Interest is assigned due to its unique nature as a non-cash flow event that impacts the principal balance.
• From a cash flow perspective, the negative sign represents an outgoing payment, while from a position perspective, it signifies a position inflow.

1. Understand the interpretation of the negative sign(-) for flow type 1150:

• Cash Flow Perspective: The negative sign represents an outgoing payment, which may include an incoming payment followed by an immediate outgoing payment.
• Position Perspective: The negative sign signifies a position inflow, consistent with other position inflows such as principal increase (flow type 1100).

2. Refer to the predefined configurations for flow type 1150 and update types:

• For investment transactions (category 100), use update type MM1150- (negative sign).
• For borrowing transactions, use update type MM1150+ (positive sign).

Ensure consistency in position and cash flow reporting by using the standard configuration for flow type 1150.

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