Number of Days Used for Interest Calculation by CRVRI Program is Wrong (Doc ID 2247502.1)

Last updated on MARCH 23, 2017

Applies to:

Oracle Lease and Finance Management - Version 12.2.5 and later
Information in this document applies to any platform.

Symptoms

On : 12.2.5 version, Variable Interest Rate

ACTUAL BEHAVIOR
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Find that when calculating the Variable Interest for the billing period, the number of days that is used by the CRVRI program is not correct. This is resulting in wrong interest being invoiced

EXPECTED BEHAVIOR
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Expect the number of days to be calculated correctly.

STEPS
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The issue can be reproduced at will with the following steps:
1. Create an Estimated and Billed Contract. Effective From Date = 17-Jan-2015 and for a term of 61
2. In the Configuration tab, create an asset for $ 3,684,540.32
3. In the payments tab, defined a Principal payment - quarterly and in arrears. Stub the first payment by 15 days
4. Update the Variable Interest payment schedule to make it- quarterly and in arrears. Also stub the first payment by 15 days
5. In the Interest Rate parameters, associate an Interest Index. Have the Base Rate as 3.954. The Rate Change Freq = Billing Date. Rate Change Start Date = 01-May-2017, Days in Month/year = 30/360
6. Validate and Book the Contract
7. Process CRVRI for 31-Jan-2015
8. The output shows the Interest Calc. Days as 14.516129. This is not correct. The # of days should be 14 (Contract started on 17th of the month - and it is a 30/360 interest basis)
9. We created another contract which is the same as above. The only difference being that the Interest was stubbed by 104 days to make the billing happen on 01-May-15. IN this contract, the # of days from 17-Jan-15 to 31-Jan-15 has been taken as 15 days. Also, the # of days from 01-Feb-15 to 30-Apr-15 has been taken as 89 days. Both of these are wrong. It should have been 14 days for 17-Jan-15 to 31-Jan-15 and 90 days for 01-Feb-15 to 30-Apr-15. This is because of the 30/360 days basis

Cause

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