IRR Calculation

• Codeunit 7026398, CalculateInterestAmounts using CalcXIRR

• This is a financial indicator – the calculation of the internal rate of return. The calculation of this indicator is not a legislative obligation.

• The resulting value differs from the Calculation Interest Rate p.a.% if the contract contains a calculation input that only enters the interest and not the principal.

• The IRR is always calculated independently of the type of financing, the person of the contract or other parameters if the flag Calculate IRR = Yes is filled in on the contract header.

The methodology for calculating IRR % (IRR%, IRR function (microsoft.com)) in the OC standard is as follows:

• The system compiles cash flow contracts from the following into the pace table:

  • Input Price) as of the day of handover of the object (negatively) taking into account calculation inputs such as cost/revenue commission and fees, which are marked with the APR Calculation flag = Yes

  • Payments according to the payment schedule (principal + interest) on the due date

  • Residual Price as Last Cash Flow Line (Residual Value Calculated) at Expected Termination Date

• It uses the XIRR function to calculate the "internal rate of return" of this cash flow

The calculation model is shown here:

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