Rate Issue for Partially Terminated Contracts

(Doc ID 2382166.1)

Last updated on APRIL 03, 2018

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, Asset Management

ACTUAL BEHAVIOR
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Rate Issue for Partially Terminated Contracts

During the partial termination process, the payoff amount is not being factored into the calculation when the contract is rebooked. The rate almost always changes during this process (decreases, often becoming a negative rate).

The termination amount of the asset is derived using a logic other than the NPV of the contract cash flow – and so is not being considered for yield calculations.


EXPECTED BEHAVIOR
-----------------------
After partial termination the rate calculated should not show incorrect value.

STEPS
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The issue can be reproduced at will with the following steps:
1. Create a contract
2. Perform partial termination.
3. Check the yields calculated.


Changes

 

Cause

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