Incorrect FTP Average Life Calculated for Basis Risk Cost

(Doc ID 2391845.1)

Last updated on APRIL 26, 2018

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version 8.0.2 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Funds Transfer Pricing (FTP)

Symptoms

On FTP 8.0.2 the calculated Average life generated is 4.999 years, however the BASIS_RISK_COST_RATE adjustment rate being picked up is the 7 year rate.

EXPECTED BEHAVIOR
As per the defined Adjustment Rule if the generated average life (TP_AVERAGE_LIFE) is between 3 to 5 year it is expected to pick up the 5 year rate but FTP is going into next slab of 5 to 7 years and picking up the 7 year rate.

The issue can be reproduced at will with the following steps:
1. Create TP rule definition.
2. Create TP adjustment using Basis Risk Costs and Adjustment : Formula Based Rate with reference term Average Life
3. Check generated BASIS_RISK_COST_RATE

Changes

 

Cause

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