11.8.3 Requirements for Successful Ledger Migration

Successful Ledger Migration of Transfer Pricing Results requires correct configuration of the following parameters:

• Application Preferences
• Dimensions
• Entered and Local Currency
• Transfer Pricing Rule
• Adjustment Rule
• Product / Source Selection
• Migration and Product Dimension Set Up
• Offset Org Unit
• Transfer Pricing Process
• Calculation Mode
• Charge/Credit Accrual Factor

Together these parameters determine the way Transfer Rate, Adjustment Rate, and Option Cost calculations are carried out for every instrument record.

• Application Preferences
  You must configure the following application preference parameters:
• Dimensions
  To be eligible for inclusion in the Ledger Migration Process, a dimension must exist and be actively populated with dimension values in both the Instrument tables and in the Management Ledger table. Given below is a list of dimensions available for inclusion in the Ledger Migration Process:
• Entered and Local Currency
  Oracle Funds Transfer Pricing provides you with the option of performing Ledger Migration and writing charges and credits in the entered or local currency, designated in the ISO_CURRENCY_CD column, or in the functional currency.
• Source of Currency and Exchange Rate Information
  Oracle Funds Transfer Pricing sources currency and exchange rate information from Rate Management > Currency and Currency Rates screens. Ledger migration should only be performed for currencies that are activated or enabled.
• Transfer Pricing Rule
  The Transfer Pricing Rule is used to define the transfer pricing and option cost methodologies for each product dimension member. While defining transfer pricing methodologies, ensure that all required supporting data for the method exists.
• Adjustment Rule
  
• Product/Source Selection
  Calculating and migrating Transfer Rates, Adjustment Rates and Option Costs for an entire product portfolio can be a time-consuming process. Source table selection or data selection through the Product Hierarchy option together with user data filters, allow you to reduce the ledger migration time as follows:
• Ledger Migration and Product Dimension Set Up
  
• Offset Org Unit
  During Direct Transfer Pricing of Ledger Balances and Ledger Migration, FTP generates records in the Ledger table that are posted to the Organization Unit designated as the Transfer Pricing Offset Unit (as defined via attribute within each Org Unit dimension member). During this process, an offset charge or credit amount is calculated for each normal charge/credit posted at the intersection of the Organization Unit and Product (and any other dimensions selected for migration).
• Transfer Pricing Process Rule
  The Transfer Pricing Process acts as a container for all the Ledger Migration parameters and submits them to the Transfer Pricing Engine as a processing job. A Transfer Pricing Process rule contains the following Ledger Migration specifications.
• Calculation Mode
  The choice of calculation mode, on the Transfer Pricing Process – Calculation Selection block, not only affects the transfer rate and option cost calculation processes, but also the migration process. It determines the results that will be migrated to the Management Ledger table. If the calculation mode is set to Standard then the following results are used in migration: