1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Transfer Pricing Standard Processes
  5. Process Definition Screens
  6. Ledger Migration Process
  7. Understand the Ledger Migration
  8. Charge/Credit Generation

5.3.9.3.5.2.2 Charge/Credit Generation

In addition to the calculation of the Weighted Average Rate values at the combination of the Organizational Unit and the selected Product dimensions, charge/credit generation involves the following steps:

  • Aggregation of the corresponding average or ending balance records from the Management Ledger table for each Org Unit/Product dimension combination.
  • Multiplication of the average or ending balance from the Management Ledger by the weighted average rates.
  • Application of an accrual factor to de-annualize the amount.

Oracle Funds Transfer Pricing then writes the result as dollar charges/credits to the Management Ledger table using the following financial elements:

  • 414 Liquidity Add-On Charge/Credit
  • 415 Basis Risk Charge/Credit
  • 416 Pricing Incentive Charge/Credit
  • 417 Other Add-On Charge/Credit
  • 421 - All in TP Charge Credit
  • 450 Transfer Rate Charge/Credit
  • 452 Charge/Credit Remaining Term

Note:

Instrument Charge/Credit (TP, Add-Ons and Option Cost)', when 'Calculation Mode' = 'Remaining Term' or 'Standard Term', the selected values for 'Accrual Type' (Daily or Monthly) has an impact on the calculation of the Accrual period for Charge/Credit calculation.