# Common Financial Services Industry Concepts

Here are some common concepts for PeopleSoft Financial Services Industry applications:

## Historic and Forecasted Scenarios

As a general guideline, when you process historic scenarios, you use instrument-level data, whereas when you process forecasted scenarios, you use product-level data. There are, however, exceptions to this guideline. PeopleSoft gives you the flexibility, through the Attributes Options field on the Model Definition page, to determine whether processes access product or instrument-level data. The system stores instrument-level data in the FI_INSTR_F00 table and its child tables. The system stores product-level data in the FI_PRODUCT_TBL table and its child table FI_PRODUCT_SEQ.

## Accrual Basis

PeopleSoft Financial Services Industry applications, features, or both, may need you to define an accrual basis. The accrual basis measures the number of days between two dates (start date and end date) and the number of years (or portions thereof) between two dates. The system counts the days between the start date and the end date, and then divides this number by the appropriate divisor, depending on the accrual method that you select. Each of the start dates and the end dates has a specified year, month, and day.

Your choices are:

30/360

30N/360

30E/360

Actual/Actual

Actual/360

Actual/365

These procedures explain how the accrual basis is determined for each of these options.

30/360

If the start date falls on the 31st of the month, then treat it as the 30th of the month.

If the end date falls on the 31st of the month, and the start date is the 30th of the month, then treat the end date as the 30th of the month.

Multiply 360 times the difference between the years of the start date and end date.

Multiply 30 times the difference between the months of the end date and the start date.

Count the days between the end date and the start date.

Add the results of steps 3, 4, and 5 above.

Divide the sum by 360.

30N/360

If the end date falls on the last day of February, then treat the end date as the 30th of the month.

If the start date falls on the last day of February, then treat the start date as the 30th of the month.

All of the rules for 30/360 apply (steps 3 to 7 above).

30E/360

If the end date falls on the 31st of the month, then treat it as the 30th of the month.

If the start date falls on the 31st of the month, then treat it as the 30th of the month.

Multiply 360 times the difference between the years of the end date and the start date.

Multiply 30 times the difference between the months of the end date and the start date.

Count the days between the end date and the start date.

Add the results of steps 3, 4, and 5 above.

Divide the sum by 360.

Actual/Actual

Count the days between the start date and the end date, dividing them into two segments: number of days that fall in a leap year, and number of days that fall in a non-leap year.

Divide the number of days in the non-leap year by 365.

Divide the number of days in the leap year by 366.

Add the ratios in steps 2 and 3 above.

Actual/360

Count the days between the start date and the end date.

Divide by 360.

Actual/365

Count the days between the start date and the end date.

Divide by 365.