FTP Instrument Charge/Credit Calculation Using the Wrong Balance Column (Doc ID 1608067.1)

Last updated on JULY 01, 2015

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version 6.0 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Symptoms

In Oracle Financial Services Funds Transfer Pricing (FTP) 6.x, when you run an FTP Process with the "Instrument Charge/Credit (TP)" option selected, the value output to the  CHARGE_CREDIT_TRATE column on the instrument table is calculated using the wrong balance. For example, in Application Preferences, under "TP Charge/Credit Balance", you have Instrument set to "Average Book Balance" but the CHARGE_CREDIT_TRATE value is calculated using the Current Book Balance.

Example:

CUR_BOOK_BALAVG_BOOK_BALTRANSFER_RATEACCRUAL BASISCHARGE_CREDIT_TRATE
1945.86 7939.06 4.175 30/360 6.77

CHARGE_CREDIT_TRATE = balance * (transfer rate/100) * accrual basis

CHARGE_CREDIT_TRATE = 1945.86 * (4.175/100) * (30/360) = 6.77

The calculation is using the CUR_BOOK_BAL when you expect it to use the AVG_BOOK_BAL based on the settings in Application Preferences.  The Charge / Credit value is incorrect.

Cause

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