ONC INTEREST ACCRUAL CALCULATION (Doc ID 1182403.1)

Last updated on MARCH 08, 2017

Applies to:

Oracle Treasury - Version: 11.5.6 to 12.1.3 - Release: 11.5 to 12.1
Information in this document applies to any platform.

Symptoms


=== ODM Issue Clarification ===
Wrong interest calculation for Short Term Money deals, you have two short term money deals with same exact details except for Maturity date. Interest is calculated wrongly for the transaction having maturity date
Create a Short Term Money Deal with the following Common Details
Date Count Basis: Actual/Actual
Interest Rounding: Nearest
Interest Includes: Last Day

then create two different transactions for the above Deal
Transaction1:
Deal Date: 11/25/2009
Matury Date: 11/25/2014
Principal amount 20,000,000
interest rate 8.675

Transaction2:
Deal Date: 11/25/2009
Matury Date: null
Principal amount 20,000,000
interest rate 8.675

all other details for the both the above transactions are same.

Run the Accrual process for the period 06/012010 - 06/30/2010

Notice the interest amount for both the transactions for 217 days (11/25/09 - 06/30/2010)
Transaction1: 1,028,674.86
Transaction2: 1,031,493.15

You noticed that system is using the formula 217/365 for transaction that doesn't have maturity date and 217/366 for transaction that has maturity date

This happens as: when you run the accrual process for the 2 deals i.e. one deal without maturity date and
the other one with maturity date and all other details on both the deals are exactly same



Cause

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