11.8.2 Understand the Ledger Migration

To understand the process of creating Average Transfer Rate, Adjustment Rates, Option Cost, and Charge/Credit rows in the Management Ledger table (financial elements 170/172, 174-177, 171/173, and 450/451, 414-417, 452/453, respectively), you need to make the following assumptions:

• All rows in the relevant Instrument tables have already been transfer-priced and/or assigned an option cost.
• All rows contain a valid rate in one or more of the following columns:
  • TRANSFER_RATE
  • TRAN_RATE_REM_TERM
  • LIQUIDITY_PREMIUM_RATE
  • BASIS_RISK_RATE
  • PRICING_INCENTIVE_RATE
  • OTHER_ADJUSTMENTS_RATE
  • CUR_OAS
  • HISTORIC_OAS
• Average Balance or Ending Balance (financial element 140/100) information has been loaded into the Management Ledger table with a dimensionality that matches the instrument table data being migrated.

This document describes the mechanics, which occur just after the Instrument tables transfer pricing or option cost calculations are completed successfully and just before Transfer Rate, Adjustment Rate, or Option Cost Ledger migration starts. For example, the mechanics that occur just after Instrument tables are populated with valid Transfer Rates and just before the Weighted Average Transfer Rate (WATR) and the Charge/Credit rows in the Management Ledger table are updated.

The Ledger Migration of option costs works on the same lines as Transfer Rate and Adjustment Rate migration. However, there are certain differences.

• Transfer Rate, Adjustment Rate, and Option Cost Calculation
  The Oracle Funds Transfer Pricing Engine calculates and writes Balance-Weighted Average Rates to the Management Ledger table, using Current Book Balance, Average Book Balance, or a User-Defined Balance from each instrument record to perform the weighting process.
• 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:
• Direct Transfer Pricing of Ledger Balances
  Oracle Funds Transfer Pricing allows users to calculate transfer rates for ledger average or ending balances that do not have corresponding Instrument table records using the following transfer pricing methodologies:
• Ledger Migration and the Management Ledger Table
  
• Data Signage
  The Management Ledger table supports variable data signs. You can load data into the Management Ledger table in the following three variations:
• Management Ledger Table Editing Standards
  You should be careful while editing the Management Ledger table directly. If you ever get unexpected results in the Management Ledger table after Ledger Migration, then review the data you have entered.
• Ledger Migration and the Virtual Memory Table
  To calculate transfer rates at the Product dimension member level in the Management Ledger table, all rows in the Instrument tables must be accumulated to arrive at the Weighted Average Transfer Rate (WATR) and Weighted Average Adjustment Rates (WAAR) for each member. All data used in the ledger migration process passes through a table, called the Virtual Memory table (VMT), and built in the memory.