Incorrectly Calculated FE 672 Gap Interest Cash Flow Net Due to Record's ACCRUAL_BASIS_CD Not Being Taken Into Account

(Doc ID 2366428.1)

Last updated on APRIL 04, 2018

Applies to:

Oracle Financial Services Asset Liability Management - Version 8.0.4 and later
Information in this document applies to any platform.
Oracle Financial Services Asset Liability Management (ALM)
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Enterprise Performance Management (EPM)

Symptoms

ACTUAL BEHAVIOR

While checking the output of an ALM static process it has been noticed that FE 672 Gap Interest Cash Flow – Net is not correct. More precisely, for a floating rate record, the ACCRUAL_BASIS_CD is not taken into account when generating FE 672 Gap Interest Cash Flow – Net.

STEPS TO REPRODUCE

1. Create a similar record with AMRT_TYPE_CD = 801 (the corresponding Payment Schedule has also been provided).
2. Create a Time Buckets definition.
3. Create the following assumptions:
3.1 Product Characteristics
Note: Holiday Calendar assumptions are defined but they will not be taken into account for this record because AMRT_TYPE_CD=801 (Payment Schedule). Anyway, Holiday Calendar details have also been provided.
3.2 Forecast Rates Scenarios (for simplicity, only one scenario can be created)
FE 672 Gap Interest Cash Flow – Net does not take into account the forecasted rates (only the CUR_NET_RATE from deal level is used).
4. Create a static ALM process having as source the record mentioned at Point 1 and the ALM assumptions described at Point 2.
5. Run the process and check FE 672 Gap Interest Cash Flow – Net.

Cause

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