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Interest Cash Flow (FE 430) Is Not Correct for the First Payment (Doc ID 2729129.1)

Last updated on NOVEMBER 26, 2020

Applies to:

Oracle Financial Services Asset Liability Management - Version 8.0.0 and later
Information in this document applies to any platform.
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Asset Liability Management (ALM)

Symptoms

When running an ALM Process for an Adjustable Rate record where there is no multiple repricing within the Payment period, the first calculated Financial Element (FE) 430 value (Interest Cash Flow) is wrong.  The value for FE 435, Interest Cash Flow Gross, is correct even though 'Model with Gross Rates' is not selected.

Example:

In FSI_O_PROCESS_CASH_FLOWS, the following values are output:

FE 430 = 1875188.314168  *** Wrong
FE 435 = 2153483.905156  *** Correct

You validate FE 430 as follows:

LAST_PAYMENT_DATE: 30-MAY-2020 (31 Days to Next Payment)
NEXT_PAYMENT_DATE: 30-JUN-2020 

Interest Cash Flow = 365403275.7*(0.06844*(31/360)) = 2153483.905

You do not understand why the FE 430 value does not match the calculated Interest Cash Flow.

Cause

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In this Document
Symptoms
Cause
Solution
References


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