Hi,

 

SAP Effective Interest Rate is MS Excel XIRR function according to SAP Note 839381 . This document is how you can validate these two functions.

 

In the Excel attached (no macros) there is a calculation process in SAP , XIRR and IRR .

 

Some points to keep in mind.

 

  • You can convert from XIRR to IRR only if you calculate if your base is days (interest days) not years (periods)
  • XIRR calculates on act/365
  • IRR calculates on act/360
  • You can iterate values in Excel with Data -> Whatif Analysis -> Goal Seek . This is used to get IRR for NPV = 0
  • Use SAP function EFFEKTIVZINS_BERECHNEN to calculate XIRR in SAP, only cashflow is needed.
  • Look at formulas in Excel. Look for comments in cells.

 

This document does not support Excel files, so I uploaded it in xml files and attached images for SAP function

 

SAP Function – Days Sheet

 

01-06-2016 09-18-12 a.m..png

 

01-06-2016 09-18-35 a.m..png

Effective Interest Rate

01-06-2016 09-19-00 a.m..png

 

SAP Function – Year Sheet

 

01-06-2016 09-22-09 a.m..png

 

01-06-2016 09-22-28 a.m..png

 

Effective Interest Rate

01-06-2016 09-23-07 a.m..png

 

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3 Comments

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  1. Eli Klovski

    Hi Gustavo,

    Nice job. However, in a view of new platform, I’d suggest you not to split blogs any more in to parts. Currently, it is very difficult edging to impossible to ‘link’ between the parts, unlike what was available under old SCN design. It would be better, therefore, to post your theme in a one post.

    Kind regards,

    Eli
     

    (0) 
    1. Gustavo Vazquez Post author

      Hi Eli,

      The title is OK but content is not; I didn’t write it.
      I’d love to go on tourism to South Africa but I wrote about XIRR function in Excel

      Tags are ok,

      Kind Regards
      🙂

      (0) 

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