This chapter describes the implementation steps specific to the Oracle Transfer Pricing application.
This chapter covers the following topics:
Oracle Transfer Pricing implementation is similar to that of other Oracle Financial Services applications. You need to follow all the common implementation steps. See: Implementing Oracle Financial Services Applications.
In addition, you need to complete the following implementation steps:
Confirm Oracle Transfer Pricing (FTP) Table classification assignments. See: Confirming Oracle Transfer Pricing (FTP) Table Classification Assignments.
Confirm Oracle Transfer Pricing (FTP) Table Column Property Assignments. See: Confirming Oracle Transfer Pricing Table Column Property Assignments.
Build one or more Line Item hierarchies if you intend to build hierarchical assumption rules (such as Transfer Pricing, Prepayment, or Adjustments rules). See: Defining a Line Item Hierarchy.
Load data and parameters for interest rate codes, optionally using Web ADI. See:Loading Data Using Web ADI.
Oracle Transfer Pricing (FTP) requires that each account table included in a transfer pricing process is registered and assigned an appropriate FTP table classification. The seeded table classifications are as follows:
Transfer Pricing Non Cash Flow: This assignment allows transfer pricing processing with only Non Cash Flow Transfer Pricing methods.
Transfer Pricing Cash Flow: This assignment contains all of the columns included in the Transfer Pricing Non Cash Flow assignment plus all of the columns required for cash flow processing. This assignment supports all transfer pricing Methods.
Break Funding: This assignment requires three new columns in addition to the standard columns required for the Transfer Pricing Cash Flow table classification. This assignment supports Breakage Charge adjustments type.
Transfer Pricing Option Cost: This assignment contains all of the columns included in the Transfer Pricing Cash Flow plus all of the Option Cost calculation result columns. This assignment is required if you plan to run the Option Cost calculations.
Each of these FTP table classifications require a fixed set of seeded columns that cannot be modified. For consistency, each of the seeded customer account tables contains the full set of required columns for each of the seeded FTP table classifications. If you create user-defined customer account tables, you are not required to include all of the columns for all of the FTP table classifications. However, you should be aware of the minimum column requirements related to each of these table classifications and include those columns that correspond to the type of processing you are planning.
For further details on registering tables and table classification assignments see: Performing Table and Column Registration Tasks.
Related Topics
Oracle Transfer Pricing Implementation Overview
Oracle Transfer Pricing (FTP) requires that each account table column used for alternate rate output mapping in a transfer pricing process be registered with a column property assignment appropriate to the result type. See: Alternate Rate Output Mapping Rules, Oracle Transfer Pricing User Guide.
The following table describes the column property assignments for the different types of transfer pricing results:
| Column Property Assignments | Related Columns |
|---|---|
| Transfer Pricing Transfer Rate Property | Columns with this property are available for Transfer Rate, Matched Spread, and Remaining Term Transfer Rate alternate output. |
| Transfer Pricing Option Cost Property | Columns with this property are available for Historic Option Adjusted Spread, Historic Static Spread, Current Option Adjusted Spread, and Current Static Spread alternate output. |
| Transfer Pricing Adjustment Spread Property | Columns with this property are available for Other Adjustment Rate alternate output. |
| Transfer Pricing Adjustment Amount Property | Columns with this property are available for Other Adjustment Amount alternate output. |
For further details on table column property assignments, see: Performing Table and Column Registration Tasks.
Related Topics
Oracle Transfer Pricing Implementation Overview
Alternate Rate Output Mapping Rules, Oracle Transfer Pricing User Guide
Set up a Line Item dimension, a single product dimension, and define a Line Item hierarchy before setting up Oracle Transfer Pricing business rules such as the Transfer Pricing and Prepayment rules.
Setting up the Line Item dimension and defining a Line Item hierarchy lets you organize your product portfolio in a hierarchical structure and define parent-child relationships among different nodes of your product hierarchies. This lets you define node level assumptions for transfer pricing your product portfolio. Children of parent nodes on a hierarchy automatically inherit the methodology assumptions defined for the parent node. Node Level Assumptions significantly reduce the amount of work required to define transfer pricing and prepayment assumptions for your product portfolio. See: About Dimension and Hierarchy Management, Oracle Enterprise Performance Foundation User's Guide.
Related Topics
Oracle Transfer Pricing Implementation Overview
The Web ADI functionality complements the Oracle Transfer Pricing user interface. It is designed to allow Microsoft Excel-based data entry of historical interest rate and parameter information.
Predefined Interest Rate Codes
Navigate to the Interest Rate Codes home page.
Click Load Data corresponding to the Interest Rate Code for which you want to load data.
Select the type of data, Historical Rates or Parameter, you want to load.
Important: The data type determines the columns that will be available on the Web ADI spreadsheet.
Select the required effective date range.
Important: You can load Web ADI based rates only from an empty spreadsheet.
Click Launch Worksheet to invoke Web ADI.
Create new record by entering the effective date and associated data.
Important: In the spreadsheet, the IRC term points are reflected generically such as Term 1, Term 2, and Term 3. Consequently, you should input data in the correct chronological order to ensure that rates are uploaded appropriately. For reference, the IRC term structure is documented in the contextual area at the top of the spreadsheet. Web ADI allows you to edit the column descriptions to reflect the appropriate term point description. For example, you can change 'Term 1' to ‘1 D’ for informational purposes and save the spreadsheet, along with this edit, locally for future use.
Select Upload on the Oracle menu of the spreadsheet.
The system performs data validations and the Interest Rate Code home page is displayed.
Important: The Web ADI rate loader does not restrict you from loading rates for an effective date that already exists in the database. The new rates will overwrite the existing rates. The assumption made is that these rates will be the same for any given effective date. In addition, the Web ADI rate loader allows you to input more than one row with the same effective date for a given IRC in the spreadsheet. In this case, the first occurrence of the effective date is loaded and any subsequent occurrences of the same effective date are ignored.
Related Topics
Loading Data, Oracle Transfer Pricing User Guide