11 Annexure

Differences Between ALM 8.x and ALM Cloud Service

This chapter describes the key behavioral differences between ALM 8.x on-premises and ALM Cloud Service (ALMCS) that result from cloud enhancements and calculation improvements. These changes are designed to improve calculation consistency and accuracy; however, they may affect existing results depending on the configuration and data being processed. This chapter helps explain those result differences and also identifies objects that cannot be migrated from the on-premises environment to ALMCS because of enhancements introduced in the cloud service.

Application configuration differences

The following differences affect application setup, assumptions, and configuration granularity.

Table 11-1 Database tables of process results and report

Configuration area	ALM 8.x behavior	ALM Cloud Service behavior
Time buckets	Only one time bucket can be active for a user.	The active time bucket concept is removed. Any time bucket can be used to configure Forecast Balance, Pricing Margin, Maturity Mix assumptions, and processes. Additional bucket options are available, including Relative to As-of Date, Relative to Prior Bucket, and Stub to Month End.
Static deterministic process	Output aggregation uses predefined combinations by Product, Org Unit, and Currency.	Users can select up to ten dimensions to aggregate output. Multi Dimensional Balance Sheet Structure (MDBSS) can also be used.
Dynamic deterministic process	Output aggregation uses predefined combinations by Product and Currency.	MDBSS is used to aggregate output.
Forecast balances	Forecast Balance and Pricing Margin are configured in separate rules at Product-Currency level.	A new Forecast All Business rule allows Forecast Balance and Pricing Margin to be configured in one rule at MDBSS-Currency level.
Pricing margin	Mandatory for the Dynamic Deterministic Process. Configured at Product-Currency level.	Not required when the Forecast All Business assumption is used. Configured at MDBSS-Currency level.
Maturity mix	Mandatory for the Dynamic Deterministic Process. Configured at Product-Currency level.	Optional for the Dynamic Deterministic Process. If omitted, Original Term and Amortization Term from Product Characteristics are used. Configured at MDBSS-Currency level.
Product characteristics	Required for both current and new business. Configured at Product-Currency level.	Required for new business only. Configured at MDBSS-Currency level.
Transaction strategy	l attributes are defined manually at Product Currency level.	Attributes can be copied from a seeded product profile or an existing instrument. Configured at MDBSS-Currency level.
Forecast rates	Dependent on the active time bucket.	Forecast period is fixed at monthly frequency for 30 years. After 30 years, the same rate is used.
Interest rate curves	One set of attributes, Rate Format, Accrual Basis, and Compound Basis, is defined for an IRC.	Attributes are defined at term-point level. Two attribute sets can exist in the same curve. For example, term points 1-5 can use ZCY, A/A, Annual Compounding, while term points 6 onward can use YTM, A/365, Half-Yearly Compounding.
Currency gain or loss basis	Methodology, such as Temporal Basis, Historical Basis, or Current Rate, is configured in Product Characteristics at Product-Currency level.	The exchange rate used for Temporal Basis, Historical Basis, and Current Rate methodologies can be configured by consolidation category, such as Beginning Balance or Accrued Interest. A dedicated UI is available for this setup.