Prepayment with Conditional Assumption Using Dimension Values Not Assigning Prepay Rates Correctly (Doc ID 1500523.1)

Last updated on OCTOBER 31, 2012

Applies to:

Oracle Financial Services Asset Liability Management - Version 5.2 to 6.0 [Release 5 to 6]
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Symptoms

In Oracle Financial Services Asset Liability Management (ALM), when you run an ALM Process that includes a Prepayment rule which uses conditional assumptions to assign prepayment rates based on Org Unit dimension values, the prepayment rates are not assigned correctly by the conditional assumptions.

Example:

The conditional assumption is setup to assign Prepayment Rates as follows:

If Org Unit ID = 1201, Prepayment Rate = 20%.
If Org Unit ID = 1202, Prepayment Rate = 9%.

Note: The main Prepayment rule definition has Prepayment Rate = 12%.

When users run the ALM Process with this Prepayment Rule, records with Org Unit ID = 1201 get the correct Prepayment Rate of 20% but records with Org Unit ID = 1202 get assigned the rate of 12%.   Users expect records with Org Unit ID = 1202 to get a Prepayment Rate of 9%.

The Prepayment Rates are not assigned correctly by the conditional assumption.

Steps to Reproduce:

  1. Go to Asset Liability Management
  2. Go to Assumption Specification > Prepayments
  3. Create a new Prepayment rule that uses a Conditional Assumption to assign the Prepayment Rate based on the Org Unit ID value.
  4. Go to ALM Processing > Static Process > Static Deterministic
  5. Create and run an ALM Process using the Prepayment rule created in Step 3

In the RES_DTL_xxxxx table, the Prepayment Rates are not assigned correctly for each Org Unit.

Cause

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