ALM FE 430 Interest Cash Flow Calculation Is Not Correct for Behavior Pattern Non Maturity Product (Doc ID 3015454.1)

Last updated on APRIL 12, 2024

Applies to:

Symptoms

On ALM 8.1.2.2.10, it appears that ALM FE 430 Interest Cash Flow Calculation is not correct for Behavior Pattern (BP) Non Maturity Product.

ACTUAL BEHAVIOR
FE 430 Calculation is not correct for Non Maturity Product- CASA. The CFE is calculating 430 interest from last_payment_Date to next_payment_date + accrued_Interest instead of interest from as_of_date to next_payment_date + accrued_Interest.

EXPECTED BEHAVIOR
As per the CFE User Guide:

8.2.4 Accrued Interest (ACCRUED_INTEREST)

This section describes the Accrued Interest (ACCRUED_INTEREST).

8.2.4.1 Definition
Calculated Interest due from the Last Payment Date to the As-of-Date.

8.2.4.1 Module Usage

For Oracle ALM, this field is used for Non-Maturity Behavior Pattern instruments, instruments that get repriced multiple times within a payment event, and for Annuity
Instruments.

1. For Non- Maturity Behavior Pattern instrument, Accrued interest provided is used to compute the First Interest Cash Flow on the next_payment_date. If this information is available from the source system, the cash flow engine will be able to more accurately reflect the interest cash flow due to the next interest cash flow date (NEXT_PAYMENT_DATE). The Cash Flow Engine combines the ACCRUED_INTEREST amount (up to the AS_OF_DATE) with a calculated interest from the AS_OF_DATE + 1 day to the NEXT_PAYMENT_DATE.

Note:
For Non-Maturity Behavior Patterns, the principal payments are determined based on the pattern dates, and the interest payments are determined based on the NEXT_PAYMENT_DATE and PMT_FREQ from the instrument record.

Changes

Cause

My Oracle Support provides customers with access to over a million knowledge articles and a vibrant support community of peers and Oracle experts.