1. User Guide
  2. Business Rules Administration
  3. Application Specific Rules
  4. Transfer Pricing Rules
  5. Overview of Transfer Pricing Methodologies and Rules
  6. Unpriced Account
  7. Transfer Pricing Unpriced Accounts

5.3.4.1.13.1 Transfer Pricing Unpriced Accounts

Accounts using the Unpriced Account method are a special case of direct transfer pricing in instrument tables based on already calculated transfer rate of other product dimension members. The Unpriced Account transfer pricing methodology uses the WATR from other accounts to derive a WATR for the Unpriced account. This is accomplished by averaging the WATR for the component accounts, weighted by their relative Balances.

If Unpriced method is being applied on Product 04 as WATR of Product 01, 02 and 03, then following calculations will takes place:

WATR for Product 04 = (LSBal01_x_TfrRate01 + LSBal02_x_TfrRate02 + LSBal03_x_TfrRate04)/( LSBal01 + LSBal02 + LSBal03)

Rate Weighting Balance: From a UI dropdown, user can select the balance on which Transfer rate weighting will be done, Possible Values are:

  • Average Book Balance (Avg Book Bal)
  • Ending Book Balance (Cur Book Bal)
  • Activated Placeholder Balance Columns