EDM: Incorrect Initial Fair Value When A New Deal With Purchased Interest Is Created

(Doc ID 2348792.1)

Last updated on JANUARY 15, 2018

Applies to:

PeopleSoft Enterprise FIN Deal Management - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.

Symptoms

After entering and saving a deal with amount, settlement date, term, counterparty, purchased interest, the initial fair value is shown as par value times price percent of par + purchased interest. That is incorrect. But after doing any change on the deal and saving it again, the initial mtm value on the deal analytics page does not include the purchased interest anymore.

STEPS:

1. Enter a deal with amount, settlement date, term, counterparty. Enter Issue date that is before settlement date to calculate the purchased interest.
2. Save the deal.
3. Run cashflows.
4. Navigate to the deal analytics screen from the link at the bottom of the deal detail page.
- The Initial value is shown as par value times price percent of par + purchased interest. That is incorrect. Purchased interest should not be a part of the initial MTM
value.

5. Return to the deals screen.
6. Make any change to the deal and save the deal again and rerun the cashflows.
7. Navigate to the deal analytics screen again:
- Now notice the initial mtm value on the deal analytics page. It does not include the purchased interest anymore.

Cause

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