1. Cash Flow Engine Reference Guide
  2. Cash Flow Dictionary
  3. Cash Flow Columns
  4. Accrued Gross Amount (ACCRUED_GROSS_AMT
  5. Module Usage

8.2.5.2 Module Usage

For Oracle ALM, this field is used for Non-Maturity Behavior Pattern Instruments, instruments that get repriced multiple times within a payment event.

  1. For Non- Maturity Behavior Pattern instrument, Accrued gross amount provided is used to compute the first interest cash flow gross on the next_payment_date. If this information is available from the source system, the cash flow engine will be able to more accurately reflect the interest cash flow gross due to the next interest cash flow date (NEXT_PAYMENT_DATE). The cash flow engine combines the ACCRUED_GROSS_AMT (up to the AS_OF_DATE) with a calculated interest from the AS_OF_DATE + 1day to the NEXT_PAYMENT_DATE.

    Note:

    For Non-Maturity Behavior Patterns, the principal payments are determined based on the pattern dates, and the interest payments are determined based on the NEXT_PAYMENT_DATE and PMT_FREQ from the instrument record.
  2. When an adjustable Instrument gets repriced more than once from the last payment date to as of date, Engine expects Accrued gross amount from LAST_PAYMENT_DATE till as of date to be supplied in the column ACCRUED_GROSS_AMT for a more accurate reflection of Interest Cash Flow gross on next payment date.

    If an Instrument gets repriced more than once from the last payment date till as of date, there will be multiple repriced rates to consider for that period, and the engine would not be able to go back to historical reprice rates between last payment date and as of date. It will use the current gross (CUR_GROSS_RATE) of the instrument and calculate interest gross from the last payment date till the next payment date. This could lead to incorrect initial interest cash flow gross on the next payment date. As an alternate, for these scenarios, user can provide an Accrued gross amount for the period from last payment date till as of date, and the engine will calculate interest gross from as of date till next payment date, and add provided accrued gross amount to get total interest cash flow gross on next payment date.

    Note:

    If an Accrued gross amount is provided, the engine will use it in processing for the above notes scenarios. If the instrument is FIXED RATE (adjustable_type_cd= 0), then the Interest gross is calculated from the Last Payment date till Next Payment Date.