Getting Error Unable to Calculate Pre-Tax Internal Rate of Return when Pricing Financed Fee
Last updated on MAY 01, 2017
Applies to:Oracle Lease and Finance Management - Version 12.2.3 and later
Information in this document applies to any platform.
On : 12.2.3 version, Lease Authoring
When pricing a contract with a financed fee, the following error is occurred. The IRR of the financed fee is only about 32.418 based on further testing If pricing the asset alone only shows an IRR of 32.749. If pricing the same values as the fee as an asset line it prices successfully and shows an IRR of 32.418.
Unable to calculate Pre-Tax Internal Rate of Return. Based on the cash flows generated, the Pre-Tax Internal Rate of Return value calculated would be greater than 1000 percent
The issue can be reproduced at will with the following steps:
1. Create a lease contract with a finance fee attached to the asset
2. Activate the contract and pricing errors with the above.
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