1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Transfer Pricing Rules
  5. Overview of Transfer Pricing Methodologies and Rules
  6. Defining Transfer Pricing Methodologies using Conditional Assumptions

5.3.4.1.16 Defining Transfer Pricing Methodologies using Conditional Assumptions

Oracle Funds Transfer Pricing Cloud Service extends the setup and maintenance of assumptions by allowing users to integrate conditional logic (optional) into the setup of Transfer Pricing, Prepayment, and Transfer Pricing Adjustment methods. The Caterpillar Method under Transfer Pricing Rules will not be available for selection under Conditional Assumptions.

The Conditional Assumption UI is accessed from the Assumption Browser by selecting the Conditional Assumption icon.

Figure 5-55 Assumption Browser


Assumption Browser

The conditional logic is defined using Data Filters and/or Maps. These existing objects provide the building blocks for defining Conditional logic. For example, each Data Filter can provide the logic for a specific condition. In the following example, the Where clause is “Adjustable Type Code = 'Adjustable Rate'”. This type of Data Filter can be selected within the Conditional Assumption UI.

For more information on working with Filter, see the Filters document.

For example, you can use the Org Unit column to drive the assignment of Transfer Pricing Methods for all members of a particular Organization. You can create one Conditional Assumption to convey the entire Transfer Pricing Methodology logic and attach it to the top-level node of the Org Unit hierarchy. All nodes below the top-level node inherits the same Transfer Pricing assumption.

The logic included in a Conditional Assumption determines the specific Transfer Pricing method, Prepayment assumption, or Adjustment Rule that the system assigns to each instrument record at Run time.

The Conditional Assumption screen allows users to select explicit conditions (from Data Filters and/or Hierarchy Filters), apply methods, and rule selections to each condition directly. The Filter Conditions are processed by the engine in the order that they appear on the screen. After a condition is satisfied, the related assumption is applied. The following figure displays a representative Conditional Assumption using a Data Filter:

Figure 5-56 Conditional Assumptions


Conditional Assumptions

Note:

If an instrument record does not meet any of the conditions, then the rule logic reverts to the standard assumption that is directly assigned to the Product / Currency combination.

Conditional Assumptions can be applied only to detailed account records (data stored in the Instrument Tables).