Incorrect Signage Deferred Current Balance Amortization for Account Type 300 in ALMBI Reports (Doc ID 2208086.1)

Last updated on FEBRUARY 09, 2017

Applies to:

Oracle Financial Services Asset Liability Management - Version 8.0.0 and later
Oracle Financial Services Asset Liability Management Analytics - Version 8.0.0 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Business Intelligence Enterprise Edition (OBIEE)
Oracle Financial Services Asset Liability Management Analytics (ALMBI)
ALM BI
Reporting
Analytics

Goal

The deferred current balance ( Premium / Discount ) amortization for account type 300 appears to be incorrect for borrowing and investment products.
Expected:

Expenses :- With Positive Signage in Borrowing
Income :- With Negative Signage in Investment

Cur Book Balance = Cur Par Balance + Deferred Cur Balance

Have selected Level Yield for amortization of Deferred Current Balance.  Borrowings data ( Account Type 300 ) was processed and Result element for Forecast Income Report ( Financial Results ) for Interest Expenses are FE 540 + FE 440.
Result is populated in Cons_Dtl are FE 440 with positive signage & FE 540 with negative signage.

E.g. FE 440 + FE 540 = Interest Expenses

  1000 + (-) 1500 = (-500)

On ALMBI > Financial Results > Forecast Income

Interest Income = Rs. 1250
Interest Expenses = Rs. (-500)

NII Rs. 1750

Query:

a.) Why FE 540 is generated with negative signage? ( Account Type 300 ) . Is it correct ?
b.) As per ALMBI logic , is it correct to deduct Account Type 300 from Account Type 100.  If getting Interest Expense as "Negative " then as per logic it will be added back to Interest Income to arrive at net interest as shown above in example.
c.) Share the functionality of Populating Interest Expenses which is FE 440 + FE 540.

Solution

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