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TP_AVERAGE_LIFE Not Populated in FTP When Using “Use TP Method From Selected TP Rule” in Adjustment Rule (Doc ID 2683551.1)

Last updated on JUNE 29, 2020

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version 8.0.7.2.0 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)

Symptoms

ACTUAL BEHAVIOR

On FTP 8.0.7.2.0 version, TP_AVERAGE_LIFE not populated for Adjustment Rules using method as “Use TP Method from Selected TP Rule”.

In the referenced FTP Rule the TP method is “Cash Flow Average Life”.

After running the FTP process, it's been noticed that although FTP rule is specified to output the Average Life at Instrument Tables account level, the TP_AVERAGE_LIFE column is equal with "0" and the Liquidity Premium Adjustment Rate is not calculated correctly.

The expected Average Life output could be successfully obtained through the Transfer Rate rule but not through the Adjustment Rate Rule which references the TP rule.

 

EXPECTED BEHAVIOR

The expected outcome would be to have the TP_AVERAGE_LIFE correctly populated in the situation in which the FTP method used for Transfer Rate is different than Average Life used for calculating the Adjustment Rate.

You have requirement on Straight Term method for “Base Rate” which is written on TRANSFER_RATE and “Average Life” on “Liquidity Premium Rate” which shall be output on LIQUIDITY_PREMIUM_RATE column.

 

STEPS TO REPRODUCE

The issue can be reproduced at will with the following steps:
1. Insert instrument record in FSI_D_LOAN_CONTRACTS and define Payment Schedule data.
2. Define the Interest Rate Curve.
3. Define similar FTP rule for the corresponding <Product, Currency> combination.
4. Define similar FTP Adj rule for the corresponding <Product, Currency> combination.
5. Define FTP processes and run it.
6. Check if TP_AVERAGE_LIFE is populated, also check if TRANSFER_RATE and LIQUIDITY_PREMIUM_RATE are correct.

Changes

 

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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