11.8.2.2 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:

• Aggregation of the corresponding average or ending balance records from the Management Ledger table for each Org Unit/Product dimension combination.
• Multiplication of the average or ending balance from the Management Ledger by the weighted average rates.
• Application of an accrual factor to de-annualize the amount.

Oracle Funds Transfer Pricing then writes the result as dollar charges/credits to the Management Ledger table using the following financial elements:

• 414 Liquidity Adjustment Charge/Credit
• 415 Basis Risk Charge/Credit
• 416 Pricing Incentive Charge/Credit
• 417 Other Adjustment Charge/Credit
• 450 Transfer Rate Charge/Credit
• 451 Historic Option Cost Charge/Credit
• 452 Charge/Credit Remaining Term
• 453 Current Option Cost Charge/Credit

Note:

Instrument Charge/Credit (TP, Adjustments and Option Cost)', when 'Calculation Mode' = 'Remaining Term' or 'Standard Term', the selected values for 'Accrual Type' (Daily or Monthly) has an impact on the calculation of the Accrual period for Charge/Credit calculation.