Transaction Strategy Does Not Work as Expected When in Combination With New Business Assumptions (Doc ID 2253016.1)

Last updated on APRIL 07, 2017

Applies to:

Oracle Financial Services Asset Liability Management - Version 8.0.2 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Asset Liability Management (ALM)

Symptoms

On ALM 8.0.2, it appears that the Transaction Strategy does not work as expected when in combination with New Business Assumptions.

ACTUAL BEHAVIOR
Have encountered a problem while running a process that has both New Business and Transaction Strategy Assumptions. Expect the results to be similar to the ones that are received when only Transaction Strategy Assumptions are included in the dynamic process.

When running the process we get both Total Runoff - Positive and Total Runoff - Negative (FEs 210 and 212) results although we have an amortization type of 700 (non-amortizing) and a maturity of 3 years. Also, the change in the New add balance ( FE 340 ) and Ending Balance (FE 100) is happening in the bucket following the start date of the Transaction Strategy.

From our point of view the New Business does not appear to work as well since it seems like it is regenerating every bucket, so maybe the problem with the Transaction Strategy has something to do with this. Issue is already raised in <BUG:25241212> - DYNAMIC PROCESS NEW BUSINESS AMOUNTS FE 340 RANDOMLY DO NOT ORIGINATE CORRECTLY.

EXPECTED BEHAVIOR

New Business with Transaction Strategy is not working correctly.

The issue can be reproduced at will with the following steps:
Run the following three ALM Dynamic Processes and compare results:

- TS without NB (results are correct)
- NB without TS (same issue as in BUG:25241212 - DYNAMIC PROCESS NEW BUSINESS AMOUNTS FE 340 RANDOMLY DO NOT ORIGINATE CORRECTLY)
- NB with TS (results are not as we expected)

Cause

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