Incorrect Transfer Pricing Assumption Results in ALM 5.5 When Using New Business (Doc ID 1334953.1)

Last updated on JULY 01, 2011

Applies to:

Oracle Financial Services Asset Liability Management - Version: 5.5 and later   [Release: 5 and later ]
Oracle Solaris on SPARC (64-bit)
Oracle Solaris on x86-64 (64-bit)
Oracle Financial Services Analytical Applications Infrastructure (OFSAAI) - Version 7.2
Oracle Financial Services Analytical Applications (OFSAA) - Version 5.5

Symptoms

On Oracle Asset Liability Management (ALM) 5.5 after applying one-off Solaris Patch: 12529839 - ALM PROCESS WITH TRANSFER PRICING RULE SELECTED ARE NOT GIVING EXPECTED RESULTS, the transfer pricing for new business is incorrect. For current business, the results are the same as in 5.2, but for new business the results are incorrect.  The average transfer rate is not calculated in many cases, or if calculated, the numbers are too low. The Transfer Rate Charge/Credit is also incorrect in most cases.  The method tested is Straight Term method.  This method in ALM 5.2.2 produced correct results.

ACTUAL BEHAVIOR
No Average Transfer Rate and incorrect Transfer Rate Charge/Credit for new business

EXPECTED BEHAVIOR
Correct average transfer rate and transfer rate charge/credit results

STEPS
The issue can be reproduced at will with the following steps:
1. Use Straight Term TP method
2. Run Dynamic Deterministic ALM process with TP
3. Check results

Cause

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