1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Payment Adjustment Date (PMT_ADJUST_DATE)
  5. Module Usage

8.2.108.2 Module Usage

Oracle ALM and Funds Transfer Pricing Cash Flow Methodologies reference PMT_ADJUST_DATE when processing and calculating the current payment for negative amortization type accounts. This is relevant only for adjustable rate accounts where AMRT_TYPE_CD = 600.

The Cash Flow Engine recalculates negatively amortizing payment amounts on a PMT_ ADJUST_DATE. Just like a payment recalculation for a NEG_AMRT_LIMIT, a payment recalculation on the PMT_ADJUST_DATE takes into account the effects of payment decrease/increase limits per period (PMT_DECR_CYCLE, PMT_INCR_CYCLE) and payment decrease/increase limits for the life of the record (PMT_DECR_LIFE, PMT_INCR_LIFE). This provides for additional negative amortization to occur even after PMT_ADJUST_DATE has recalculated the payment amount.

  • PMT_ADJUST_DATE is incremented forward by the PMT_CHG_FREQ field until maturity.
  • PMT_ADJUST_DATE differs from NEG_AMRT_EQ_DATE because on PMT_ ADJUST_DATE, the calculated payment is constrained by payment decrease/increase limits per period and payment decrease/increase limits for the life of the record. However, on the NEG_AMRT_EQ_DATE, the calculated payment overrides these payment change limits.