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Interest Cash Flow (FE 430) Uses Wrong Dates for Adjustable / Floating Records with Multiple Repricing (Doc ID 2191158.1)

Last updated on APRIL 01, 2021

Applies to:

Oracle Financial Services Asset Liability Management - Version 8.0.0 to 8.0.2 [Release 8]
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)

Symptoms

In Oracle Financial Services Asset Liability Management (ALM) 8.0, for records with multiple repricing periods within one payment period (multi-repricing), you are not getting the expected results for Interest Cash Flow (Financial Element 430).  You expect to get the following behavior for the first cash flow event:

For adjustable and floating records:

If ACCRUED_INTEREST is null, FE 430 is calculated from LAST_PAYMENT_DATE to NEXT_PAYMENT_DATE.
If ACCRUED_INTEREST is populated, FE 430 is calculated from AS_OF_DATE to NEXT_PAYMENT_DATE.

However, when validating Interest Cash Flow, you find ALM is not calculating FE 430 as described above.  In one case, for floating rate records, when ACCRUED_INTEREST is populated, ALM is calculating it from LAST_PAYMENT_DATE to NEXT_PAYMENT_DATE.  ALM is not using AS_OF_DATE.  In another case when a Payment Schedule is used and ACCRUED_INTEREST is null, you find ALM is incorrectly calculating FE 430 from the AS_OF_DATE to the NEXT_PAYMENT_DATE.

Note: Multi-repricing logic does not apply to fixed rate records.  It only applies to records that reprice.

Cause

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In this Document
Symptoms
Cause
Solution
References


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