OFSAA ALM 812 Engine Is Not Applying Indexation To Principal And Oututting Cur_Par_Bal On The Maturity_Date
(Doc ID 3040352.1)
Last updated on AUGUST 16, 2024
Applies to:
Oracle Financial Services Asset Liability Management - Version 8.1.2.2 and laterInformation in this document applies to any platform.
Oracle Financial Services Asset Liability Management (ALM)
Oracle Financial Services Analytical Applications Infrastructure (OFSAAI / AAI)
Oracle Financial Services Enterprise Performance Management (EPM)
Symptoms
You are defining an index linked product/ deposit where the pay off the deposit will be linked to an index. The index is going to be negotiated index and you don't want forecasted Index from your economic indicators. The recommendation would be to populate fsi_account_index_hist table.
You test this with one dummy deal which is non amortizing in nature with 0 interest rates and pmt_freq equal to amrt_term which happens to be 5 years. Following data fields were additionally asked in fsi_d_borrowings:
cap_protection_category,
index_adj_type,
index_id,
base_index_value
Index ID were defaulted to 0 as per the user guide since it’s a negotiated index and current value of the index was provided in fsi_account_index_hist table which is 150.
Upon running the cash flow process, it is observed that the engine is not applying indexation to the principal and putting the cur_par_bal as it is on the maturity_date. Expected value should be:
15000 i.e. 10000*(150/100) but engine is giving 10000 against FE 210 and 660.
Changes
Cause
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In this Document
| Symptoms |
| Changes |
| Cause |
| Solution |
| References |