1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Transfer Pricing Rules
  5. Overview of Transfer Pricing Methodologies and Rules
  6. Reference Period Compound Rate

5.3.4.1.14 Reference Period Compound Rate

When you load the compounded rate index as per the selected period, the application picks compounded index for the reference period start date which is configured by the user. For example, last payment date, TP effective Date, and so on and As-of-Date as reference period end date to do the calculation.

In this method configuration, along with selection of IRC, a term point selection is also possible which will by default set at minimum available term point.

Reference Period Start Date: It could be any of the following dates:

  • Last Payment Date (Default)
  • Origination Date
  • Last Reprice Date
  • TP Effective Date
  • Adjustment Effective Date

Reference Period End Date will always be As-of-Date.

In case rates are not available for either reference period start or end date, IRC fallback logic will be used. For example, if you are looking for 12-Dec-2020, and compounded index is not available for this, then the application picks the most recent available date and considers that 'Rate' for 12-Dec-2020.

To annualize the rate, number of days in an year is required, which will be as per account’s accrual type cd.

Figure 5-55 Transfer Price Method Mapping


Transfer Price Method Mapping