5.3.5 Add-on Rate Rules

Add-on Rate Rules allow you to specify Methodologies to calculate Add-on Rates and Breakage Charges for the relevant products in your portfolio.

Add-on Rate Rules allow users to define Add-on Rates that are assigned incrementally on top of base Funds Transfer Pricing Rate to Account for a variety of miscellaneous risks such as Liquidity Risk or Basis Risk, or to supplement Strategic Decision-Making with Pricing Incentives, Breakage Charges, or other types of Add-On Rates.

Within the Standard Transfer Pricing Process, users can select an appropriate Add-on Rate Rule to calculate Add-on Rates or Breakage Charges.

Add-on Rates can be a Fixed Rate, a Fixed Amount, or a Formula Based Rate. Breakage Charges can be a Fixed Percentage, a Fixed Amount or can also be calculated on an Economic Loss Basis. The Add-On Rates are calculated and output separately from the base Funds Transfer Pricing Rate, so they can be easily identified and reported. Additionally, Add-on Rate Rules allow you to apply event-based logic with Conditional Assumptions that are applied or varied only if a specific condition is satisfied.

The Standard Transfer Pricing Process references the Methodologies contained in the Add-on Rate Rule.

Navigating the Summary Screen

When you first navigate to the Add-on Rate Rules summary, the rules stored within your current default folder are presented in a summary table. The Add-on Rate Rules summary displays the Search pane and Add-on Rate Rule summary table.

Figure 5-65 Add-on Rate Rules summary page

The title bar of the summary page provides several actions for the user. They are:

• Add: Click Add icon to create a new Add-on Rate Rule.
• Multiple Delete: Enables you to select and delete one or multiple rules in the table simultaneously.
• Refresh: Click Refresh to reload the summary page.
• Help: Click the Help icon to view the Add-on Rate Rules help page.

Search Add-On Rate Rule

On the Add-On Rate Rule summary, enter your search criteria in the search box and click Search. The Add-On Rate Rules meeting your search criteria are displayed.

or

An alternative method to search a Add-On Rate Rule is through the Field Search option. This is an inline wildcard UI search that allows you to enter a search value (such as name, code, etc.) partially or fully. Rows that contain the string you are searching for are fetched and displayed in the Add-On Rate Rules summary. You can enter the Code, Name, Creation Date, Created By, Modified Date, and Modified By of the Add-On Rate Rule, partially or fully, and click Search.

Add-on Rate Rules Summary

The Add-on Rate Rules Pane presents a table containing all Add-on Rate Rules that meet your search criteria.

The Add-on Rate Rules Summary Page displays the following columns.

• Name: Displays name of the rule.
• Creation Date: Displays the date and time when user created the rule.
• Created By: Displays the Name of the user who created the rule.
• Last Modification Date: Displays the Date and Time at which an Add-on Rate Rule was last modified.
• Last Modified By: Displays the name of the user who last modified an Add-on Rate Rule.
• Access Type: Displays the access type of the rule - Read/Write or Read Only property of an Add-on Rate Rules. Only the creator of a Rule may change its Access Type.
• Folder: Displays the folder name where the Rule is stored.
• Action: Click this icon to view a list of actions that you can perform on the rule.
  • View: Click View in the Action column and select View to view the contents of an Add-on Rate Rules in Read/Write format.
  • Edit: Click Edit in the Action column to edit the contents of an Add-on Rate Rules.
  • Delete: Click Delete in the Action column to delete an existing Add-on Rate Rule.

  You may select or deselect all the Add-on Rate Rules in the summary table by clicking the check-box in the upper left-hand corner of the summary table directly to the left of the Name Column header.