Why Does the Interest Calculation Use an Accrual Basis of Actual/Actual When 30/360 Exists on the Instrument Record?

(Doc ID 2364053.1)

Last updated on FEBRUARY 22, 2018

Applies to:

Oracle Financial Services Balance Sheet Planning - 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)

Goal

For Oracle Financial Services Asset Liability Management (ALM) or Balance Sheet Planning (BSP) 8.0.x, when running the Cash Flow Engine (CFE) against floating rate records (ADJUSTABLE_TYPE_CD = 50), why is the Interest Cash Flow (430) calculation using an Accrual Basis of Actual/Actual (ACCRUAL_BASIS_CD = 3) when the record has 30/360 (ACCRUAL_BASIS_CD = 1)?

Solution

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