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FAQ: Economic Value Role in FE 495 Calculation (Doc ID 2744507.1)

Last updated on JANUARY 19, 2021

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)
Financial Element (FE)
Frequently Asked Questions (FAQ)
Transfer Pricing (TP)
Market Value (MV)

Goal

FAQ regarding the Economic Value calculation in the FTP module(FE 495 -> Market Value of TP Cash Flow):

1. What is the exact formula for calculating the Economic Value in case of EV_TP_RATE, EV_LIQ_PREM_RATE, EV_OTH_ADJ_RATE_ALT, etc. and all the other alternate outputs of Economic Value?

2. When running FTP Process without Alternate Rate Output, the value stamped in EV_TP_RATE and the value stamped in respective columns after adding the alternate rate outputs is the same. There is no change in the values. Should there be a difference in the generated values?

3. When selecting Liquidity Premium Rate in Alternate Rate Output and ran the FTP Process, it stamps the Economic Value in EV_LIQ_PREM_RATE column. On changing the same Alternate Rate Output rule to Other Adjustable Rate Alternate and ran the same FTP Process, it stamps the Economic Value in EV_OTH_ADJ_RATE_ALT column but does not delete the previously stamped "EV_LIQ_PREM_RATE" column. Why FTP module behave like this?

4. How to verify the FE 495 cash flows that is generated while populating the Economic Value for TP Rate.

Solution

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In this Document
Goal
Solution
References


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