4.1.9.4 Defining Product Characteristic Rules

The definition of a Product Characteristics Rule is part of the Create or Edit Product Characteristics Rule process. When you click Save in the Create Product Characteristics Rule process, the Rule is saved, and the Product Characteristics Rule summary page is displayed. However, Product Characteristic assumptions have not yet been defined in the products at this point. Start defining the Product Characteristic assumptions for MDBSS before clicking Save.

Defining Product Characteristics Using Node Level Assumptions

Node Level Assumptions allow you to define assumptions at any level of the MDBSS Hierarchy. The MDBSS supports a hierarchical representation of the chart of accounts to take advantage of the parent-child relationships defined for the various nodes of the MDBSS hierarchies when defining Rules. Children of parent nodes on a hierarchy automatically inherit the assumptions defined for the parent nodes. However, assumptions explicitly defined for a child take precedence over those at the parent level.

Prerequisites

Performing basic steps for creating or editing a Product Characteristics Rule.

To define a Product Characteristic Rule, follow these steps:

1. From the Assumption Browser window, select the product (or products) and the currency to define the Product Characteristics. Click Add + icon to launch the Product Characteristic Details window.
2. Select the Currency.

   Note:

   To define assumptions for all currencies with the selected product, select Default Currency.

3. From the Assumption Browser, select the Product or Products.
4. Click the Add Assumption.
5. From the File menu, select Save.

   Note:

   Using the default currency to setup assumptions can save data input time. At runtime, the calculation engine uses assumptions explicitly defined for a product currency combination. If assumptions are not defined for a currency, the engine uses the assumptions defined for the product and the default currency. If the assumptions are the same across some or all currencies for a specific product, you can input assumptions for the default currency. Be careful when using this option on UI where an Interest Rate Code is a required input. In most cases, you will want to use a currency-specific interest rate curves for pricing instruments within each specific base currency. The Default Currency option, if used will apply a selected Interest Rate Code across all currencies.

6. The Product Characteristic Details window has the following three input tabs:
   • Core Attributes
   • Payment Attributes
   • Rate Attributes
   • Other Attributes