8.2.91.2 Module Usage

NEXT_PAYMENT_DATE is used to define the Next Scheduled (forecasted) Payment Date.

Oracle ALM

Processing order in regards to NEXT_PAYMENT_DATE is as follows:

From the AS_OF_DATE, the first cash flow event processed by the Cash Flow Engine is the NEXT_PAYMENT_DATE. The Cash Flow Engine references the NEXT_PAYMENT_DATE for the First Forecasted Payment Date only. This applies to payment patterns (relative and absolute), but not for Payment Schedules. See the following details:

From the NEXT_PAYMENT_DATE, the Cash Flow Engine increments forward by the PMT_ FREQ until the MATURITY_DATE is reached.

On the Payment Date, the Cash Flow Engine calculates the interest payments, principal payments, current deferred payments, prepayments, and negative amortization, if applicable. For an adjustable-type record where REPRICE_FREQ < PMT_ FREQ, the cash flow engine applies only the last repriced rate for payment calculation. If the record is not an AMRT_TYPE_CD 700 (non-amortizing), AMRT_TYPE_CD 850 (Annuity), or AMRT_TYPE_CD 600 (negatively amortizing), the record's principal balance is reduced at each payment date.

As each payment is made, the Cash Flow Engine reduces the REMAIN_NO_PMTS_C by 1. If the newly calculated REMAIN_NO_PMTS_C = 1, the next payment date is set to MATURITY_DATE.

Note:

MATURITY_DATE is the Final Payment Date. If the record's principal was not reduced by the payment amounts, the remaining principal balance is paid on the MATURITY_DATE.

For Payment Schedules, the cash flow engine does not use the NEXT_ PAYMENT_DATE field in the instrument table. For these records, it makes the next payment on the first date in the schedule after AS_OF_DATE. However, for Payment Schedules and user-Defined Payment patterns, the NEXT_PAYMENT_DATE from the detail record should correspond to the next defined payment date after the AS_ OF_DATE in the Schedule or Pattern interface.

Transfer Pricing

NEXT_PAYMENT_DATE is used for Adjustable-Rate Cash Flow Transfer-Priced records. In defining the transfer rate for an adjustable-rate record, the Cash Flow Engine produces Cash Flows for each payment date from the LAST_REPRICE_DATE to the NEXT_ REPRICE_DATE. To define all the payment events within this period, it rolls back from the NEXT_PAYMENT_DATE by the PMT_FREQ until just before the LAST_REPRICE_DATE. From this calculated payment date, the cash flow engine again rolls forward by the PMT_FREQ, but this time Cash Flows are produced. The Cash Flows produced are used by one of the four Cash Flow Transfer Pricing Methodologies to derive the transfer rate.