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FTP Generates Incorrect Adjustment Output While Calling a Transfer Pricing Rule From Within an Adjustment Rule (Doc ID 2781679.1)

Last updated on APRIL 26, 2023

Applies to:

Oracle Financial Services Funds Transfer Pricing - Version to 8.1.1 [Release 8 to 8.1]
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 FTP, incorrect adjustment output is generated while calling a Transfer Pricing (TP) rule from Adjustment Rule.


Output for basis_risk_cost_rate column is different in below scenarios:

Scenario 1: Standard process calling Basis Risk Adjustment Rule (method: Use TP method from selected TP rule). If the standard process is configured to only call the Adjustment Rule, then the correct adjustment output is populated into the BASIS_RISK_COST_RATE column (compared to below scenario where both TRANSFER_RATE and BASIS_RISK_COST_RATE are calculated).

Scenario 2: Standard process calling the TP rule and Basis Risk Adjustment rule (method: Use TP method from selected TP rule). If a TP rule is called in the Standard Process, and the same TP rule is called in Adjustment Rule (say Basis Risk Cost Rate), then the output is different.

Scenario 1 is giving the correct output, whereas scenario 2 is giving an incorrect result. If the same rule is called, then the same result is expected as in Scenario 1.

The incorrect result that is being returned, is because the Engine is recalculating CUR_PAYMENT instead of using the CUR_PAYMENT from the instrument record. The engine is calculating the CUR_PAYMENT by reference to the number of payments between the LAST_REPRICE_DATE and the MATURITY_DATE.



Output in basis_risk_cost_rate column should be same in both scenarios. Expected behavior is that the CUR_PAYMENT on the record should be used to determine the cashflows rather than the engine recalculating the current payment.


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