3800076 - Money Market fee flow 1907 not included in amortized cost/eir until update type effects are maintained in SSCUI 102097 - SAP S/4HANA Cloud Public Edition

• In Money Market (product category 55A, amortization procedure “net SAC”), formalization/origination fees modeled as an additional flow using flow type 1907 and flagged for inclusion in amortized cost are not considered in the effective interest rate during position valuation (TPM1); the recalculated EIR matches the nominal rate with no fee amortization.
• Same setup works in an on-premise system.
• Clarification requested whether SAC-based amortization of transaction costs is supported in scope item 1WV or if this is a configuration issue.

SAP S/4HANA Cloud Public Edition

1. Create a Money Market transaction (product category 55A) with amortization procedure “net SAC”.
2. Add an additional fee flow using flow type 1907 and set it to be included in amortized cost/effective interest calculation.
3. Settle the transaction.
4. (Optional) Post initial flows with TBB1.
5. Run position valuation (TPM1) for period end.
6. Observe that the effective interest rate equals the nominal rate and the fee is not amortized.

Missing maintenance of the update type effects for the fee flow in SSCUI 102097 (Set Effects of Update Types on Position Components). Additionally, selecting “Eff. Int. Calculation” impacts the transaction-level rate but not accounting.

1. Do not rely solely on the “Eff. Int. Calculation” indicator; it changes the transaction-level rate but does not drive accounting.
2. In SSCUI 102096 (Assign Flow Types to Update Types), ensure flow type 1907 is assigned to the appropriate update type (for example, MM1907-).
3. In SSCUI 102097 (Set Effects of Update Types on Position Components), create/maintain an entry for the fee update type:
4. 1. UType = MM1907-
5. 2. PCC (Position Component Category) = 1011
6. Save the configuration.
7. Re-run period end valuation (TPM1) and verify that the fee is included in the amortized cost via SAC and that the effective interest rate reflects the fee amortization.

• refer to: Determination of Amortized Cost Based on Expected Cash Flows
• refer to: Note 3780472 - Amortization of Upfront Fees for Long-Term Loans in Treasury and Risk Management - SAP S/4HANA Cloud Public Edition

Money Market, Product Category 55A, Flow Type 1907, Effective interest rate, Amortized cost, SAC, Net SAC, TPM1, Position Valuation, SSCUI 102096, SSCUI 102097, Update type MM1907, Position Component category 1011, Origination fees, Formalization fees , KBA , FIN-FSCM-TRM-TM-2CL , Transaction Management (Public Cloud) , Problem