Incremental Borrowing Rate

Incremental borrowing rates (IBR) must be manually maintained by the Functional Administrator. This table must always contain nominal rates. This table is not synced with SAP.

The application automatically selects a configured IBR value in an activation group based on the company code, valid standard term start and end dates, and the date of the activation group creation.

In most cases, when the Contract Rate is not supplied in a contract, the application uses IBR. If the contract is classified as Capital under ASC840, the application always updates the IBR value at inception and for all events, because it uses the lower of the two rates. The Incremental Borrowing Rate table must therefore always have valid IBR configuration if ASC 840 is configured for the Company.

Warning: By default, the Asset Class field is ignored as a filtering field. To use it, you must enable the option in Accounting Settings. If enabled, the application will check the external asset class (i.e., the Asset Class ID in the Asset Class table) when selecting an IBR.

To add or modify IBRs:

  1. Navigate to System ConfigsSystem.
  2. Click on the row for the required system. The system name is now displayed next to "System" in the configuration tree.
  3. Navigate to System ConfigsSystem > Company.
  4. Click on the row for the required company. The company name is now displayed next to "Company" in the configuration tree.
  5. Navigate to System ConfigsSystem > Company > Incremental Borrowing Rate.
  6. To add a new IBR, click Menu > Add.

    Note: You cannot enter negative IBR values.

  7. To edit an existing IBR, click for the required row.
  8. Modify the fields as required.
  9. Click Submit.
  10. To detach an existing IBR from the company code, select the required row and click Menu > Detach.
  11. To attach an existing IBR to the company code, click the Available tab, select the required row, and click Menu > Attach.

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