11.10 Define Payment Patterns

A prerequisite for transfer pricing your product portfolio is capturing instrument behavior. Payment and repricing characteristics for most instruments can be accommodated through the data attribute values in the Instrument tables. However, certain instruments may not have contractual cash flows or may have cash flows that are based on unique payment and repricing patterns that are too complex to be accommodated in the standard fields of the Instrument tables. Oracle Funds Transfer Pricing allows you to define custom behavior, payment, and repricing patterns to accurately model the unique characteristics for such instruments.

In a user-defined payment pattern, you can assign a unique Amortization type code to a set of payment events, which may include some of the following customized features:

• Changes in payment frequency
• Seasonal payment dates
• Nonstandard or variable payment amounts

After you create a payment pattern, you can use it by entering the payment pattern code as the Amortization type code for the instrument.