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Variable Rate Contract - Re-booking the Contract with a Revision Date that is Before the ‘Last Interest Calculation Date’ (Doc ID 1399744.1)

Last updated on MARCH 28, 2019

Applies to:

Oracle Lease and Finance Management - Version 12.1.2 to 12.1.2 [Release 12.1]
Information in this document applies to any platform.


In an Estimated and Billed Variable Rate contract, the system does not stop us from rebooking the contract with a Revision Date that is before the ‘Last Interest Calculation Date’. In such a case, if the rebook is done with a change in principal payment amounts for the billed periods, the Interest already billed will be wrong based on the modified principal payment stream.

The issue can be reproduced at will with the following steps:
1.Login to the Application
2.go to (R) Lease Super User-->(N)Lease
3.Create a variable rate contract: Loans-Float-Estimated and Billed with following parameters:
· Contract Start Date: 1-Apr-2011
· Contract Term: 6
· Number of Periods for Principal Payments: 6
· Variable Interest Payment Freq: Monthly
· Number of Periods for Interest Payments: 6
· Principal Basis: Scheduled
· Rate Change Freq: Monthly
· Rate Change Start Date: 1-Apr-2011

4. Book contract

5. Run CRVRI, Billing and Accrual for Apr-11

6. Run CRVRI, Billing and Accrual for May-11

7. Confirm that the ‘Confirm Last Interest Calculation Date’ shows 31-May-11

8. Rebook the contract with an effective date of 01-May-11. Make the following changes:
· Increase Contract Term from 6 to 9 Months
· Change the Payment amounts to match the increased term

9. After the Rebook, run CRVRI, Billing and Accrual for Jun-11

10. The Interest calculation for Jun, the billing for Jun and Accrual for Jun look correct – based on the changes made to the contract

11. But the problem is with the Interest Billed in May-11. Since the Principal balance for the month changed due to the rebook, the Interest that has been billed is also wrong.




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