ALM Dynamic Process New Business Amounts FE 340 Appear to be Randomly Generating Incorrectly With One Month Maturities (Doc ID 2254949.1)

Last updated on MAY 03, 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)
Forecast Balance

Symptoms

On ALM 8.0.2, when validating new business amounts FE 340 from dynamic ALM process, they appear to be randomly generating incorrectly with one month maturities. Upon reprocessing without changing either data or assumptions, correct results will sometimes be generated.

ACTUAL BEHAVIOR
In a Dynamic ALM Process, some Conventional fixed products appear to be behaving incorrectly in New Business; it seems that the Product Characteristics and Maturity Mix definitions are only sometimes taken into consideration.

Created a Dynamic ALM Process by including the desired Product Characteristics definition. Not many deals were included in the process (less than 50), so the results were easily analyzed and the majority of the deals were correctly processed.

However, in the case of Commercial Loans, it was noticed that for New Business, all the New Added (FE 340) Amounts (generated through Forecast Balance – Target Growth Percent) were expiring after 1 month (in this case, they were expiring at the end of our monthly Time Buckets), even though the maturity was 43 months and the payment frequency defined in Product Characteristics was 1 month.

Even more unusually, after first noticing the wrong results, the process was rerun 2-3 times, and the product filter was changed by adding only the desired product and in the end the results were correct.

There does not to be any pattern as to when the results are correct. During testing the same data with same product and product assumptions were incorrect when processing all records. Sometimes, after executing the same process, the results became correct. Sometimes, they became correct after changing the product filter.

EXPECTED BEHAVIOR
Expect the same correct FE 340 results when processing at all times.

The issue can be reproduced at will with the following steps:
1. Create Product Characteristics for product
2. Create Maturity Mix assumptions for product
3. Create Forecast Balance rule --- Target Growth with Distributed Originations
4. Run Dynamic ALM Process

Cause

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