3 Define the Fair Price Revaluation Methods

Revaluation is used to revalue all active trade deals based on the revaluation frequency parameters that you specify in the Preferences while defining products. Since the market rates are constantly in a state of flux you may wish to revalue the worth of all active trade deals periodically.

In the Oracle Banking Treasury Management, you can revalue the worth of contracts by using either one of the following methods.

• Maintaining Contract Fair Prices whereby you have to indicate the fair price of individual contracts, which will be used for revaluation.
• Maintaining Branch Profit Rates whereby you can maintain branch level forward profit rates, which will determine the fair price to be used for revaluation.
• Maintaining Contract Profit Rates whereby you maintain contract specific forward profit rates which will determine the fair price to be used for revaluation.

Your preference for revaluing contracts linked to the particular product will be defaulted to all the contracts linked to that product. However you can change this preference at the time processing the contract. Each of these revaluation methods have been explained in detail in the following sections.

This topic has the following sub-topics:

• Maintain Fair Values for Revaluing a Contract
  This topic provides the systematic instruction to maintain fair values for revaluing a contract.
• Maintain Branch wise Forward Profit Rates
  This topic provides systematic instruction to maintain branch wise forward profit rates.
• Maintain Contract Specific Forward Profit Rates for Revaluation
  This topic provides the systematic instruction to maintain contract specific forward profit rates for a particular contract. You can revalue those contracts whose fair price needs to be determined based on the forward profit rates.