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

8.2.67.2 Module Usage

Oracle ALM

Oracle ALM uses LAST_PAYMENT_DATE to calculate the payment period and interest income (financial element 430) for the first Forecasted Cash Flow.

  1. The first Forecasted Cash Flow from the AS_OF_DATE references NEXT_ PAYMENT_DATE minus LAST_PAYMENT_DATE to determine the payment period for interest income calculations. The use of LAST_PAYMENT_ DATE rather than (NEXT_PAYMENT_DATE - PMT_FREQ) provides for short or extended first period payments. Beyond the first forecasted cash flow (NEXT_PAYMENT_DATE), the cash flow engine rolls forward by PMT_FREQ until MATURITY_DATE.
  2. For instruments that have been originated in the past (AS_OF_DATE >= ORIGINATION_DATE), the LAST_PAYMENT_DATE should always be greater than or equal to the ORIGINATION_DATE.
  3. For future originations (AS_OF_DATE < ORIGINATION_DATE), LAST_ PAYMENT_DATE should always be equal to the ORIGINATION_DATE.
  4. Even though the first Forecasted Cash Flow may be extended, the PMT_FREQ should always be extracted as the records general frequency of payment.

    Note:

    For Payment Schedules, the Cash Flow Engine does not use the LAST_ PAYMENT_DATE field in the instrument table. For these records, Interest on the next payment is calculated from the last date in the payment schedule, before AS_OF_DATE till next date in payment schedule after AS_OF_DATE.

However, for Payment Schedules LAST_PAYMENT_DATE from the detail record should correspond to the last defined payment date before the AS_ OF_DATE in the Schedule or Pattern interface.

Transfer Pricing

Oracle Funds Transfer Pricing refers to LAST_PAYMENT_DATE in the following cases:

  • When remaining Term Option is selected.
  • When calculating Economic Value.
  • When calculating Economic Loss on Breakage Charges.

The impact on these calculations is the same as described above for ALM.