1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Current Par Balance (CUR_PAR_BAL)
  5. Module Usage

8.2.37.2 Module Usage

Oracle ALM and Transfer Pricing Cash Flow Remaining Term Pricing Basis Methodologies use the CUR_PAR_BAL field to derive the starting balance for amortization calculations. For amortizing accounts, CUR_PAR_BAL is the balance the cash flow engine amortizes over the remaining number of payments.

Oracle ALM

  1. As the Cash Flow Engine processes the record's payment dates and its maturity date, the CUR_PAR_BAL is reduced by the principal portion of the CUR_PAYMENT amount until the principal balance reaches 0. Once the balance has been reduced to 0, the processing of the record ceases. The calculation method that defines how the CUR_PAR_BAL amount is reduced is represented by the AMRT_TYPE_CD and the CUR_PAYMENT fields.
  2. The CUR_PAR_BAL is represented as Bucket 001 under financial element 60 (beginning balance in Oracle ALM Result Detail Table (RES_DTL_XXXXXX)) and as the CUR_PAR_BAL in the FSI_O_RESULT_MASTER Table. Generally, the CUR_ PAR_BAL from the detail record matches the balances in the Result Detail and RESULT_MASTER Tables. However, there are three exceptions.
  3. Exception 1: If the record's PERCENT_SOLD > 0, the cash flow engine recalculates the balance to equal CUR_PAR_BAL * (100 - PERCENT_SOLD). This is because if any percentage of the balance is not owned by the financial institution, it is not included in the forecast.

    In this case, the RESULT_MASTER CUR_NET_PAR_BAL and Result Detail balances would be smaller than the record's CUR_PAR_ BAL.

    • Exception 2: This exception applies to Discount/Premium records where the DEFERRED CUR BAL <> 0. The cash flow engine reads in the CUR_PAR_BAL amount but processes only book balances when calculating cash flows. The cash flow engine calculates the book balance by adding the CUR_PAR_BAL and the DEFERRED_CUR_BAL.
    • Exception 3: This exception applies when the NEXT_PAYMENT_DATE < AS_OF_DATE. If the record's NEXT_PAYMENT_DATE is less than the AS_ OF_DATE and the record's AMRT_TYPE_CD <> 700, the cash flow engine reduces the CUR_PAR_BAL by the amount of the payments before the AS_OF_DATE.
    • For example, if the record's CUR_PAR_BAL = $1000 and there are two payments (each worth $100 of principal), the cash flow engine's beginning balance (financial element 60) would be equal to $800.
  4. For User-Defined Payment Patterns where the payment method is defined as % Current Balance, Oracle ALM references the CUR_PAR_BAL field for all payment amounts beyond the first forecasted payment amount.

Transfer Pricing

  • For the Cash Flow Remaining Term Pricing Basis methodologies in Oracle Funds Transfer Pricing, as the cash flow engine processes the record's payment dates and its maturity date, the CUR_PAR_BAL is reduced by the principal portion of the CUR_ PAYMENT amount until the principal balance reaches 0. Once the balance has been reduced to 0, the processing of the record ceases. The calculation method that defines how the CUR_PAR_BAL amount is reduced is represented by the AMRT_TYPE_CD and the CUR_PAYMENT fields.
  • For User-Defined Payment Patterns where the payment method is defined as % Current Balance, Oracle Funds Transfer Pricing references the CUR_PAR_BAL field for all payment amounts including the first one.

When Remaining Term Calculation Mode is selected in the TP Process, and the Target Balance for the subject product leaf in the TP Rule is Par Balance, Oracle Transfer Pricing Option Cost calculations use CUR_PAR_BAL as the target balance to which the sum of future discounted cash flows is set equal.