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RM Not Using 30/360 Accrual Basis on Records with Payment Schedule (Doc ID 761630.1)

Last updated on MARCH 25, 2019

Applies to:

Oracle Risk Manager - Version 4.5.39 and later
Information in this document applies to any platform.
Oracle Financial Services Applications (OFSA)


In Oracle Risk Manager (RM) 4.5.39, you receive negative cash flows (Financial Element 210) for records that have an Accrual Basis of 30/360 (Accrual_Basis_Cd = 1) and use a Payment Schedule.  The interest cash flow calculation appears to be incorrectly using an Accrual Basis of Actual/Actual.  RM is not using the 30/360 accrual basis from the record.  This generates an interest amount that is larger than the payment amount, resulting in the negative total runoff amount.


Beginning Balance: 926,089.70
Rate: 13.5%
Current Payment: 10,543

With Actual/Actual Accrual Basis:

Interest Cash Flow = 926089.7 * (0.135 * (31/365)) = 10618.316
Total Runoff (FE 210) = 10,543 - 10,618.316 = -75.316

With 30/360 Accrual Basis:

Interest Cash Flow = 926089.7 * (0.135 * (30/360)) = 10418.509
Total Runoff (FE 210) = 10,543 - 10,418.509 = 124.491

You expect the cash flow engine to use the 30/360 accrual basis listed on the instrument record and generate a positive runoff amount.




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