23.1 Overview of Pricing Margin Rules

In BSP, Pricing Margin rules allow users to define default pricing margins (or spreads) for their products. Pricing margins are defined period by period based on your active Time Bucket definition, for each product and, potentially, each currency. Pricing margins work together with an underlying base interest rate curve to determine note rate pricing for new business volumes defined through BSP's planning user interfaces. New business assumptions are defined based on the combined inputs from the following three forecast related business rules:

• Product Characteristics
• Forecast - Pricing Margins
• Forecast – Maturity Mix

When you require more complex definitions of pricing margins to model unique account pricing details, user-defined repricing patterns can be used. For more information, see User-defined Repricing Patterns.

The procedure for working with and managing Pricing Margin rules is similar to that of other Oracle Balance Sheet Planning business rules. It includes the following steps:

• Searching for Pricing Margin rules. For more information, see the Searching for Rules section.
• Creating Pricing Margin Rules. For more information, see Creating Rules section.
• Viewing and Editing Pricing Margin rules. For more information, see the Viewing and Editing Rules section.
• Copying Pricing Margin rules. For more information, see the Copying Rules section.
• Deleting Pricing Margin rules. For more information, see Deleting Rules section. As part of creating and editing Pricing Margin rules, you assign Pricing Margins to applicable products. See Defining Pricing Margin Rules.