Create Receivables Variable Rate Invoice Does Not Consider Adder Rate Before Rate Change Start Date
(Doc ID 1351025.1)
Last updated on JULY 14, 2020
Applies to:Oracle Lease and Finance Management - Version 12.1.2 and later
Information in this document applies to any platform.
On : 12.1.2 version, Variable Interest Rate
When we run the Create Receivable Variable Rate Invoice program it does not consider the Adder Rate before the Rate Change Start Date. It picks up the base rate only for calculating interest. But after the Rate Change Start Date, the Adder Rate is picked up and used.
Expect the Adder Rate to always be used.
The issue can be reproduced at will with the following steps:
1. Create an interest rate index that is monthly.
2. Create a product with revenue recognition as estimated and billed and interest calculation as float.
3. Create a contract using the above product. The contract start date was Jan 01, 2011.
4. In interest rate parameters define base rate as 4 and adder as 2. Rate change start date is Jan 15, 2011.
5. Booked the contract.
6. Ran create receivable variable rate invoice program as on Jan 31, 2011.
7. Create receivable variable rate invoice completed successfully.
8. The output of create receivable variable rate invoice shows two lines for interest.
9. Line one is for interest from Jan 01, 2011 to Jan 14, 2011. This has been calculated using only the base rate.
10. Line two is for interest from Jan 15, 2011 to Jan 31, 2011. This has been calculated using the index rate plus the adder rate.
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