No Multiple Repricing Next Reprice Date <> Next Payment Date and Multiplier = 'M'
(Doc ID 2446772.1)
Last updated on SEPTEMBER 20, 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 Analytical Applications (OFSAA)
In Oracle Financial Services Asset Liability Management (ALM) 8.0.x, you find that multiple repricing events are not taken into account when calculating Interest Cash Flow (FE 430) for records with NEXT_PAYMENT_DATE <> NEXT_REPRICE_DATE. Interest Cash Flow is calculated using only the new rate (FE 290). It does not use the multiple rates existing for the payment period as expected with multiple repricing.
Example of record with issue:
PMT FREQ = 6M
REPRICE FREQ = 6M
NEXT_REPRICE_DATE = 16-JAN-2018
NEXT_PAYMENT_DATE = 18-JAN-2018
Note that there are 2 or more days between the Next Reprice Date or Next Payment Date and the multipliers are 'Months'.
You expect ALM to use the old rate up to the Next Reprice Date and then use the new rate from Next Reprice Date to Next Payment Date. However, it is using the new rate for the entire payment period.
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