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High FE 430 Interest Cash Flow Generated in FSI_O_PROCESS_CASH_FLOWS for the First Payment Event (Doc ID 2343784.1)

Last updated on DECEMBER 28, 2017

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version 8.0.0 and later
Oracle Financial Services Asset Liability Management - Version 8.0.0 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Funds Transfer Pricing (FTP)
Oracle Financial Services Asset Liability Management (ALM)

Symptoms

On FTP 8.0.4.0.4, it appears that FTP with Conditional Assumption and Cash Flow Duration method and AMRT_TYPE_CD = 100 is generating a high FE 430 interest cash flow result in FSI_O_PROCESS_CASH_FLOWS for the first cash flow.

ACTUAL BEHAVIOR
When using an FTP standard process with remaining term approach for loan contracts, there are a few records with amrt_type_cd = 100 are generating negative payment runoff (FE190 / 210) and high FE 430 Interest Cash Flow for the first cash flow. The cash flows generation looks fine when it comes to other amrt_type_cd like 801,802 etc. All other cash flow dates yield expected results. The defined TP rule uses a Conditional Assumption and Cash Flow : Duration method.

EXPECTED BEHAVIOR
Expect correct FSI_O_PROCESS_CASH_FLOWS results for these records including the first cash flow date with remaining term.  Expect that run-off is calculated until maturity of instrument.

The issue can be reproduced at will with the following steps:
1. Load and create TP curve
2. Load instrument records to FSI_D_LOAN_CONTRACTS
3. Create TP rule
4. Create FTP Standard Process with Remaining Term with Audit enabled and run

Changes

 

Cause

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