Large Interest Cash Flow (430) in First Bucket of ALM Results When Using Payment Schedule (Doc ID 2040449.1)

Last updated on JULY 01, 2016

Applies to:

Oracle Financial Services Asset Liability Management - Version 6.1 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Symptoms

In Oracle Financial Services Asset Liability Management (ALM) 6.1, when you run an ALM Process against records that use a Payment Schedule, in the results, the value for Interest Cash Flow (FE 430) is very large in the first Bucket.  As a result, the principal and interest portions of the payment are not correct.  The interest cash flow may appear to be using an incorrect accrual.  For example:

1. If Adjustable_type_Cd = 250, then first Interest Cash flow on the Next payment date is considering No of Interest Accrual Days as Next_payment_Date - As_of_Date.
2. If Adjustable_type_cd = 0, then first Interest Cash flow on the Next payment date is considering No of Interest Accrual Days as Next_payment_Date - Origination_Date.

You populated the FSI_D_PAYMENT_SCHEDULE with payment dates and payment amounts. The NEXT_PAYMENT_DATE on the instrument record, is the first payment date in the payment schedule table for the instrument.

But you do not understand why such a large balance is created for interest in the first bucket.

Cause

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