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Oracle Transfer Pricing User Guide
Release 12.1
Part Number E13524-03
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Introduction to Oracle Transfer Pricing

This chapter provides an introduction to Oracle Transfer Pricing and discusses its place in the Oracle Financial Services (OFS) group of applications.

This chapter covers the following topics:

Overview of Oracle Transfer Pricing

Oracle Transfer Pricing (FTP) is the industry-standard software application for implementing a matched rate transfer pricing mechanism. Recognizing the value of matched rate transfer pricing, financial institutions are increasingly incorporating it in their performance measurement systems.

Matched rate transfer pricing overcomes the shortcomings of traditional transfer pricing approaches, such as unprofitable growth, repricing risk, and rate risk trap, by using multiple transfer rates instead of the single rate that traditional approaches advocate. Under the multiple rate approach, assets and liabilities are given transfer rates that reflect their specific maturity and repricing characteristics. See: The Transfer Pricing Concept, Oracle Financial Services Reference Guide.

Oracle Transfer Pricing calculates transfer rates at the lowest possible level of detail in your institution’s balance sheet, the transaction record level. You can generate accurate charges and credits for all sources and uses of funds for your institution and measure its interest profitability at the transaction record level.

Oracle Transfer Pricing Key Benefits

To ensure accurate results, Oracle Transfer Pricing combines advanced methodologies with a flexible and easy-to-interpret reporting approach. Oracle Transfer Pricing allows you to:

Related Topics

Oracle Transfer Pricing and Other Oracle Financial Services Applications

Overview of the Oracle Transfer Pricing Process

Oracle Transfer Pricing and Other Oracle Financial Services Applications

Oracle Transfer Pricing (FTP) is based on Oracle Enterprise Performance Foundation (EPF). EPF is the central, integrated data source on which Oracle Financial Services (OFS) applications in Release 12 are built. OFS applications form a comprehensive decision support solution that significantly enhances transfer pricing, budgeting and planning, asset/liability management, and performance measurement functions across a financial institution. In addition to Oracle Transfer Pricing, the OFS group of applications includes the following applications:

Oracle Enterprise Performance Foundation

Oracle Enterprise Performance Foundation is a standalone data model with prepackaged data elements that provides specific functionality for the financial services industry. EPF is also the foundation for the entire suite of OFS applications, providing the database structures necessary to support the individual business applications.

Oracle Profitability Manager

Oracle Profitability Manager provides a comprehensive and flexible cost and equity allocation framework. It allows you to develop processes for measuring profitability against any number of dimensions including account, customer, product, segment, and organization.

Related Topics

Overview of Oracle Transfer Pricing

Oracle Transfer Pricing Integrations

Oracle Transfer Pricing Integrations

Oracle Transfer Pricing integrates with Oracle Profitability Manager.

A transfer-priced balance sheet is merely the beginning. You can combine Oracle Transfer Pricing results with noninterest income and expense information populated at the account level with Oracle Profitability Manager to measure total profitability based on a user-definable combination of dimensions.

Related Topics

Oracle Transfer Pricing and Other Oracle Financial Services Applications

Overview of Oracle Transfer Pricing