Validation Issue / Wrong Results of FTP Breakage Charges for Floating Rate Instruments
(Doc ID 2561299.1)
Last updated on MAY 05, 2020
Applies to:Oracle Financial Services Funds Transfer Pricing - Version 8.0.0 and later
Information in this document applies to any platform.
Oracle Financial Services Funds Transfer Pricing (FTP)
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Enterprise Performance Management (EPM)
On 8.0.x version, during validation, results of Market Value, Breakage Amount, Breakage Charges from FSI_D_BREAK_FUNDING_CHARGES table didn't seem to be in line with expectation.
Detail cash flow is not able to give accurate picture with Market Value for one record being "0" in FSI_O_PROCESS_CASH_FLOWS. However BREAK_FUNDING_MV is populated in the FSI_D_BREAK_FUNDING_CHARGES table.
- There are two records in FSI_D_BREAK_FUNDING_CHARGES table: first record is full break (breakage_type_cd=1), and second record is a partial break (breakage_type_cd=2).
- An Adjustment Rule has been created, where adjustment type was selected as "Breakage Charges". Method selected is "Economic Loss" with TP cash flow Interest type as "All in TP Rate".
- The Adjustment Rule was attached to an FTP process with Remaining Term methodology. Upon running it, breakage charges got computed with the following result columns being populated:
STEPS TO REPRODUCE
The issue can be reproduced at will with the following steps:
1. Run similar FTP process
2. Check and validate results
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