11.2.18 Associating Conditional Assumptions with Assumption Rules

Oracle Funds Transfer Pricing extends the setup and maintenance of assumptions by allowing users to integrate conditional logic (optional) into the setup of transfer pricing, prepayment, and TP adjustment methods. The Caterpillar method under Transfer Pricing Rules will not be available for selection under Conditional Assumptions.

The Conditional Assumption UI is accessed from the Assumption Browser by selecting the Conditional Assumption icon.

Figure 11-10 Assumption Browser


This illustration depicts the Assumption Browser.

The conditional logic is defined using Data Filters and/or Maps. These existing objects provide the building blocks for defining Conditional logic. For example, each Data Filter can provide the logic for a specific condition. In the following example, the Where clause is “Adjustable Type Code = 'Adjustable Rate'”. This type of Data Filter can be selected within the Conditional Assumption UI.

Figure 11-11 Filter Definition


The Filter Definition (New Mode) allows you to define a new filter.

Similarly, a Mapper object provides the necessary reference to one or more hierarchies, when dimension/hierarchy data is needed to define conditional logic. In the following example, this map refers to a hierarchy created on the Organization Unit dimension.

Figure 11-12 Mapper Definition- Reporting Line to GL Mapping


This illustration depicts the Mapper Definition- Reporting Line to GL Mapping.

To do the map maintenance:

  1. Select Common Object Maintenance from the LHS menu, select Unified Analytical Metadata, and then select Map Maintenance.
  2. Click the Add icon to create a new Map.
  3. On the left-hand side, select one or more hierarchies that were enabled in the initial step.
  4. Enter the required information, for example, Name, Effective Dates, and Entity Name.
  5. Click Save.
  6. From the Map Maintenance summary page, select the Map, and then select the Mapper Maintenance icon.

    Here, you will see the hierarchy and all parent/child relationships.

Columns that are part of the “Portfolio” definition determine the range of product attributes supported for conditional assumptions and available for use within Data Filters. The “Portfolio” table class is seeded with the installation and can be extended to include user-defined columns.

For more information on adding user-defined columns to the Portfolio table class, see Chapter 2 - Object Management in OFS Data Model Utilities User Guide.

When using mappers, Conditional Assumptions can be attached to any level of the hierarchy, allowing assumptions to be inherited from parent nodes by child nodes.

For example, you can use the Org Unit column to drive the assignment of Transfer Pricing Methods for all members of a particular Organization. You can create one Conditional Assumption to convey the entire Transfer Pricing Methodology logic and attach it to the top-level node of the Org Unit hierarchy. All nodes below the top-level node inherits the same Transfer Pricing assumption.

The logic included in a Conditional Assumption determines the specific Transfer Pricing method, Prepayment assumption, or Adjustment Rule that the system assigns to each instrument record at Run time.

The Conditional Assumption screen allows users to select explicit conditions (from Data Filters and/or Maps) and apply methods and rule selections to each condition directly. The Filter Conditions are processed by the engine in the order that they appear on the screen. After a condition is satisfied, the related assumption is applied. The following figure displays a representative Conditional Assumption using a Data Filter:

Figure 11-13 Conditional Assumptions


This illustration allows you to define the Conditional Assumptions.

Note:

If an instrument record does not meet any of the conditions, then the rule logic reverts to the standard assumption that is directly assigned to the Product / Currency combination. In the example below, you can see that Fed Funds has both a direct assignment and a conditional assumption. If the condition is not met, the “Fixed Rate” assumption (ELSE condition) will be applied. For Reverse Repo's, there is only a Conditional Assumption. In the absence of an ELSE assumption, the engine will use the conditional assumption in all cases for the Product/Currency pair. To avoid this, users should define the Standard/Else assumption with appropriate input.

Conditional Assumptions can be applied only to detailed account records (data stored in the Instrument Tables). Instrument tables must have the TP - Cash Flow, Table Classification Code (200) in, or order to use Conditional Assumptions.