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. Overview of Ledger Migration Process

5.3.9.3.5.1 Overview of Ledger Migration Process

Ledger migration is the process of generating aggregated charges (expenses) and credits (revenues) for funds provided or used for a combination of dimensions and their migration to the Ledger table. The information necessary to generate these charges and credits (through Transfer Rates, Adjustments, and Option Cost Processing) originates from the instrument tables and results are inserted into the Ledger table (FSI_D_MANAGEMENT_LEDGER) You can select only one Ledger Table per FTP process. The engine will work only on one Ledger Table and never on multiple within any single FTP Process. Multiple Instrument tables are allowed as usual. Transfer pricing charge and credit information provides the basis for measuring net interest income contribution for a group of products, organizational units, or a combination of other dimensions, and is available for use in further calculations of profitability, risk forecasting, and planning.

Oracle Funds Transfer Pricing provides great flexibility in the ledger migration process and in the generation of corresponding charges, credits, and option costs. Users can specify ledger migration for a combination of an extended list of dimensions. This feature provides flexibility to users who are also using Oracle Profitability Management for profitability reporting across organizational, product, channel, geography, or other user-defined dimensions.

Additionally, Oracle Funds Transfer Pricing provides multi-currency support that allows you to generate charges or credits for funds based on entered and functional currency. You can choose to migrate the Transfer Rate, Adjustment Rates, or Option Costs by selecting the appropriate options on the Calculation Elements block of your Transfer Pricing Process rules. See: Transfer Pricing Process.

Financial Elements related to Ledger Migration: The following financial elements are used:

  • 100 – Ending Book Balance (Input FE)
  • 140 – Average Book Balance (Input FE)
  • 169 - All in TP Rate
  • 170 - Average Transfer Rate – Pertains to Standard Term
  • 172 - Average Remaining Term Transfer Rate – Pertains to Remaining Term
  • 174 - Average Liquidity Adjustment Rate
  • 175 - Average Basis Risk Cost Rate
  • 176 - Average Pricing Incentive Rate
  • 177 - Average Other Adjustment Rate
  • 414 - Liquidity Adjustment Charge/Credit
  • 415 - Basis Risk Charge/Credit
  • 416 - Pricing Incentive Charge/Credit
  • 417 - Other Adjustment Charge/Credit
  • 419 - Rate Lock Option Cost
  • 421 - All in TP Charge Credit
  • 450 - Transfer Rate Charge/Credit – Pertains to Standard Term
  • 452 - Transfer Rate Charge/Credit Remaining Term – Pertains to Remaining Term
  • 459 - Breakage Charge
  • 1414 - Accumulated Charge Credit Liquidity Premium Rate
  • 1415 - Accumulated Charge Credit Basis Risk Cost Rate
  • 1416 - Accumulated Charge Credit Pricing Incentive Rate
  • 1417 - Accumulated Charge Credit Other Add-On Rate
  • 1421 - Accumulated Charge Credit All In Tp
  • 1450 - Accumulated Charge Credit Transfer Rate - Standard Term
  • 1452 - Accumulated Charge Credit Transfer Rate - Remaining Term

Note:

Input FE's can be Average Book Balance, Ending Book Balance or even Custom Balance FE's can be used if setup as new FE's and selected in Application Preferences.