How the system determines planned interest rates for variable interest reference

In the customizing “Define Company Code Additional Data”, “Settings for variable interest rates”, it is possible to decide “Planned record update”.

Here I would like to introduce how system updates the planned variable interest rates, with the option “04 Update with current interest rates”. Here is the F1 help for this option:

The values of flows whose interest rates have not yet been adjusted are calculated on the basis of the most up-to-date interest rates, irrespective of whether these were determined by automatic or manual interest rate adjustment.

This means we use the latest interest rates, no matter where they are coming from. First, the automatic interest rate will be checked from table T056P, for e.g. reference interest rate EONIA :    

Second, manual interest rate can be found in table TRIAT with Trigger (IRA_TRIGGER) = MN, and the reference interest rate, entries are listed for all related business transactions.

Now if you create a new interest rate instrument transaction with variable interest EONIA like below:

Let us check the Cash flow:

E.g. for the first interest period, interest fixing date 2010/01/01, most latest interest rate is from automatic interest rate table T056P, “EONIA  2010/01/01   0,5500000”.

For the fourth interest period, interest fixing date 2011/07/01, the interest rate from table TRIAT: “2011/03/21      EONIA 0,6000000” is most up-to-date.

For the last interest flow, interest fixing date 2012/07/01, rate from entry of table TRIAT “2012/02/28 EONIA  8,0000000” will be selected.

For other options, please refer to the online help:

Related program: