Creating an Interest Rate Instrument for

Compound Interest

Procedure
1. Create an interest rate instrument for your investment with product type category 550 and the
corresponding transaction type using the Create Financial Transaction (FTR_CREATE).
To access the transaction, on the SAP Easy Access screen, choose   Accounting   Financial
Supply Chain Management   Treasury and Risk Management   Transaction Manager   Money
Market   Trading  .
2. Choose Enter.
The system calls the Create Interest Rate Instrument: Structure (TM_51) transaction and you must
enter data as follows (example):
o Company code: BRSP
o Product type: 55A
o Transaction type: 100
o Partner: BP
3. Choose Enter.
4. On the Structure tab page, enter data as follows:
o In the Invst group box, enter the investment amount.
o In the Interest Structure group box, choose Variable as the interest form, CDI as the
reference interest rate, and in the Interest Calculation Method field, choose the fixed
interest rate as the interest calculation method.
5. Choose Conditions, and double-click the Nominal Interest (1200) condition and ensure that the
calculation formula you created for the BRCI formula name is selected for the condition.
For example, you can enter the following variables:
o SPRD: 5 (constant value)
o VAR: CDI (variable value)
o SBAS: 360 (constant value)
o VBAS: 252 (constant value)
6. Double-click the Interest Rate Adjustment (1210) condition, and choose –1 working days in
the Interest Rate Fixing Date group box.
7. Navigate back to the Structure tab page of the interest rate instrument.
8. Save your entries.