Moving Average FTP Rule is Using Historical Rates Instead of Forecast Rates for Calculating New Business in BSP
(Doc ID 2583999.1)
Last updated on SEPTEMBER 06, 2019
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 Asset Liability Management (ALM)
Oracle Financial Services Funds Transfer Pricing (FTP)
Oracle Financial Services Balance Sheet Planning (BSP)
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Enterprise Performance Management (EPM)
Interest Rate Curve (IRC)
In BSP 8.0.6, new business results appear to be incorrectly using historical rather than forecast rates.
FTP rule of type Moving Average Transfer Rate is using historical rates (from FSI_IRC_RATE_HIST table) rather than Forecast Rates (from FSI_FCAST_IRC_DIRECT_INPUT table) for New Business in BSP.
Even if Forecast Rates is changed for IRC, the system takes historical rates for calculations and ignores the Forecast Rates. This was also verified by changing the historical rates which caused a change in the FTP rate.
Also, it calculates the same rates for all 12 time buckets for New Business in BSP.
The same issue is there in ALM.
Moving Average Transfer Rate is expected to use Forecast Rates in calculating New Business in BSP.
STEPS TO REPRODUCE
The issue can be reproduced at will with the following steps:
1. Run BSP process with Moving Average Transfer Rate.
2. Check results.
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