14.2 Set-Up Requirements

The following set-up must be performed Oracle Asset Liability Management (ALM), before the generation of auto-balancing results:

1. Selection of all Autobalancing Accounts in ALM Application Preferences. This includes:
   • Autobalancing Asset (plug account)
   • Autobalancing Liability (plug account)
   • Retained Earnings
   • Local Taxes
   • Federal Taxes
   • Dividends
2. Definition of tax rates and dividend amounts (if applicable) per modeling bucket in the Active ALM Time Bucket rule. This includes:
   • Federal Tax Percentage
   • State Tax Percentage
   • Dividend Amount <or>
   • Dividend Percentage
3. Set-up of Product Characteristic information for the auto-balancing asset plug member and auto-balancing liability plug member.

   Note:

   Autobalancing is done at Reporting Currency. For example, if reporting currency is JPY (Japanese Yen), then auto-balancing plug members need to be defined for JPY. Otherwise, define Default Currency.
4. Verify that all auto-balancing products <leaf> members are tied to Common COA Ids with the correct account type designation. The following mappings are required:

   Table 14-1 Mapping of Autobalancing and Account Common COA IDs

   Auto-balancing Account	Account Type Attribute (through Common COA)
   Asset	Earning Asset
   Liability	Interest Bearing Liability
   Retained Earnings	Equity
   Dividends	Dividends
   Federal Taxes	Taxes
   State Taxes	Taxes
   Accumulated Translation Balance	Equity

5. Percentage taxable information is correctly defined in Product Characteristics for each product <leaf> member.