ALM 8.1.x: Incorrect Calculations For Principal Cash Flow (FE 210) and Interest Cash Flow (FE 430) When Holiday Calendar Is Used
(Doc ID 2972369.1)
Last updated on SEPTEMBER 14, 2023
Applies to:
Oracle Financial Services Asset Liability Management - Version 8.1.0.1.0 and laterInformation in this document applies to any platform.
Oracle Financial Services Asset Liability Management (ALM)
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Enterprise Performance Management (EPM)
Modern Risk and Finance (MRF)
Principal Cash Flow (FE 210)
Interest Cash Flow (FE 430)
Symptoms
On ALM 8.1.0.1, below issues were found related to Holiday Calendar calculations after applying ALM 8.1.0.1.8 patch.
For Principal Cash Flow (FE 210)
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1. If the 2nd last payment of the contract is holiday before maturity, the principal Cash Flow is skipped.
2. If two consecutive payments dates both falling on holiday are a scenario, in that case for latest holiday date, the principal Cash Flow is sum of previous holiday date cash flow and itself.
For Interest Cash Flow (FE 430)
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1. Double Counting happening in Interest Cash Flow when the Cash Flow date falls on holiday and hence the payment and repricing date falls on same date.
2. If the 2nd last payment of the contract is holiday before maturity, the Interest Cash Flow is skipped.
3. The interest calculation is just generated for days between the holiday and the next working day for Interest Cash flow.
Cause
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In this Document
| Symptoms |
| Cause |
| Solution |
| References |