ALM Not Using Rate Defined in Discount Factor & Market Value is the Same for All Scenarios (Doc ID 2037607.1)

Last updated on AUGUST 03, 2015

Applies to:

Oracle Financial Services Asset Liability Management - Version 6.1.1 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Symptoms

For Oracle Financial Services Asset Liability Management (ALM) 6.1.1, after installing Patch 20673483 "ALM Deterministic Process Generates the Same Results for Different Scenarios", when you run the ALM Process with a Discount Method to calculate Market Value, the Market Value results are the same for all Interest Rate scenarios.

From FSI_O_RESULT_MASTER:

COMMON_COA_ID SCENARIO_NUM MARKET_VALUE
100110 1 318918.17
100110 2 318918.17
100110 3 318918.17

Also, after validating the Market Value result, ALM appears to be using a 0% discount rate in the calculation.

The Discount Rate rule used in the ALM Process has a Discount Method of "Forecast Remaining Term".  You expect ALM to use the rate from the Discount Method and to generate different Market Value balances for the different Interest Rate scenarios.

Cause

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