RM With Payment Schedule GAP Calculated Beyond Maturity Date On Instrument Record (Doc ID 1415914.1)

Last updated on JULY 31, 2017

Applies to:

Oracle Risk Manager - Version 4.5.39 and later
Information in this document applies to any platform.
Oracle Financial Services Applications (OFSA) - Version 4.5
Note: All OFSA 4.5 products have reached sustaining support.

Symptoms

On Oracle Risk Manager (RM) 4.5.39, when attempting to generate GAP results for an instrument with a payment schedule, RM does not stop the calculation of payments on the Maturity Date of the instrument record, but continues for all records in the payment schedule including those past the maturity date.

ACTUAL BEHAVIOR
While processing Gap Results in Risk Manager, in spite of the record's maturity date being a given date, since the payment schedule is proceeding beyond the said maturity date, OFSA is projecting on the basis of payment schedule and not stopping future payments forecasting on maturity date.

EXPECTED BEHAVIOR
This is a contradiction to the OFSA Documentation which suggests that "If you are processing Gap results, or have a deferred balance associated with a particular record, cash flows will be generated until maturity." Expect that the GAP results stops the calculation of payments based on the maturity date on the instrument record regardless of the corresponding records in the OFSA_PAYMENT_SCHEDULE table.

The issue can be reproduced at will with the following steps:
1. Create GAP bucket definition:

GAP bucket definition is
Bucket 1: 1 day
Bucket 2: 2-7 days
Bucket 3: 8-14 days
Bucket 4: 15-28 days
Bucket 5: 29 days - 3mths
Bucket 6: 3 - 6 mths
Bucket 7: 6-12 mths
Bucket 8: 1 - 3 yrs
Bucket 9: 3 - 5 yrs
Bucket 10: > 5 yrs

2. Enter payment schedule records past maturity date of the corresponding instrument record
3. Run RM with GAP

Cause

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