ALM 5.6 Incorrect Discounting Calculates FE 715 And 716 For Non Default Currency Discount Rates Definition (Doc ID 1574839.1)

Last updated on AUGUST 08, 2013

Applies to:

Oracle Financial Services Asset Liability Management - Version 5.6 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA) - Version 5.6

Symptoms

On Oracle Financial Services Asset Liability Management (ALM) 5.6, when attempting to validate the values for FE 715 P.V of Principal Cash Flow and 716 P.V. of Interest Cash Flow. The calculated values of FE 715 and 716 are exactly equal to FE 210 and 430 respectively. This appears to occur when only a single non Default currency is specified in the Discount Rates rule.

ACTUAL BEHAVIOR
Discounting only occurs if discounting is defined for the default currency.

EXPECTED BEHAVIOR
Expect proper discounting to occur if using non default currency in the Discount Rates rule.

STEPS
The issue can be reproduced at will with the following steps:

1. Define a discount methods rule only with specific currency for Spot IRC method
2. Check results, see no discounting
3. Define the same discount methods rule with default currency for Spot IRC method
4. Check results, see discounting occurs
5. Update discount method rule with both specific currency and default currency defined
6. Check results, see discounting occurs

Cause

Sign In with your My Oracle Support account

Don't have a My Oracle Support account? Click to get started

My Oracle Support provides customers with access to over a
Million Knowledge Articles and hundreds of Community platforms