What is effective capital (facility), repayment by payment in SAP FS-AM - Account Management?

SAP Term: effective capital (facility), repayment by payment

• Component: FS-AM

• Component Name: Account Management

• Description: This capital is based on the SAP calculation base “Effective Capital Loan Facility, Repayment by Payment” 30000007C. It is used to determine the effective utilization of loans in a facility. In the case of these loans, the system recognizes the repayment portions of the incoming installment after payment distribution as the “Payment of Repayment”.

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• Key Concepts: 
  Effective capital (facility) is a feature of the SAP FS-AM Account Management component that allows customers to borrow money from a financial institution and repay it in installments. The repayment is made through a series of payments, each of which is calculated based on the amount borrowed, the interest rate, and the repayment period. 
  
  How to use it: 
  To use effective capital (facility) in SAP FS-AM Account Management, customers must first enter the details of their loan agreement into the system. This includes the amount borrowed, the interest rate, and the repayment period. Once these details have been entered, the system will automatically calculate the payments due for each installment. 
  
  Tips & Tricks: 
  When entering loan details into SAP FS-AM Account Management, it is important to ensure that all information is accurate. This will ensure that payments are calculated correctly and that customers do not incur any additional costs due to incorrect data entry. 
  
  Related Information: 
  For more information on effective capital (facility) in SAP FS-AM Account Management, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed tutorials on how to use this feature.