Weighted Average Rate Support for Rollover Accounts

When an account is rolled over, its terms—such as maturity and origination dates—changes mid-month. This update ensures that the Transfer Pricing (TP) and Add-on rates reflect this transition accurately rather than simply applying a single rate for the entire month.

The key features include:

  • Automated Identification: The system uses a new flag (ROLL_OVER_FLG) to automatically detect accounts that rolled over in the current processing month. Customer is expected to populate this flag for processing month, in which roll-over took place.
  • Weighted Average Rate (WAR) Logic: A new batch component Weighted Rate Calculations For Rollover Accounts calculates the final rate by weighting the rate before rollover which is picked from last month’s rate and corresponding balance. After roll over rate and balance is picked based on current processing month’s configuration for concerned account, e.g. straight term method can be configured and after roll over rate can be calculated; This ensures FTP charge/credits are precisely calculated based on weighted average rate.
  • Smart Propagation Logic: To prevent incorrect data carry-over, a new safety feature has been added. When propagating rates from a prior period, the system can now automatically skip accounts that rolled over in the previous month, ensuring that only fresh, accurate rates are used.

This enhancement includes the following UI and Configuration Updates

  • New Checkbox: In the Propagation step of the STP UI, users will now see a checkbox labeled "Skip Rolled Over Accounts (Last Period)." If selected, and account’s roll over flag was yes in prior processing month; then last month’s weighted average rate will not be propagated to current month.

Dynamic Enabling: This option becomes available specifically when you select Transfer Rate Propagation or Add-On Rate Propagation, allowing for targeted control over which accounts are included in your rate carry-forward process.

Improves accuracy of rate calculations for rollover accounts by incorporating both before and after roll over data (rates/balances), ensuring more precise rates and charge/credits.

Steps to enable and configure

NA

Key resources

  • https://docs.oracle.com/en/industries/financial-services/ofs-analytical-applications/profitability-balance-sheet-base/index.html