11 OFS Funds Transfer Pricing Overview

Oracle Funds Transfer Pricing (FTP) application is based on the Oracle Financial Services Analytical Applications Infrastructure (OFSAAI). OFSAAI is the central, integrated data source on which Oracle Financial Services Analytical (OFSAA) applications are built. This description of the Oracle Funds Transfer Pricing process assumes that your system administrator has set up the OFSAAI data repository and has populated it with your enterprise-wide business data. For more information, see the OFS Analytical Applications Infrastructure User Guide.

Oracle Funds Transfer Pricing allows you to transfer price instruments, such as mortgages and commercial loans, stored in your Instrument tables, as well as aggregated information, such as cash and other assets, and equity, residing in the Management Ledger table. Consequently, in transfer pricing you need to select the Account tables as the data source for instruments and the Management Ledger Table for aggregated information.

The Oracle Funds Transfer Pricing process comprises the following steps:

Tip:

Although the following list of steps is sequential, not all users must follow all of these steps. While some steps might not apply to your product portfolio, others are optional, and you can decide whether to include them to fine-tune your transfer pricing results. All required steps are explicitly marked as mandatory in the list of steps, as well as in the sections where they are described in detail.
  • Reconciling the data
  • Cleansing the data by Performing Cash Flow Edits
  • Setting Application Preferences
  • Capturing instrument behavior by:
    • Defining Behavior Patterns
    • Defining Payment Patterns
    • Defining Repricing Patterns
  • Activating Currencies and loading exchange rates
  • (Mandatory) Deciding on historical rate information and managing it by Creating Interest Rate Codes
  • Setting Stochastic Rate Index Rules
  • (Mandatory) Defining Transfer Pricing Rules
  • Setting Prepayment Model Rules
  • Defining Prepayment Rules
  • Defining Adjustment Rules
  • Defining Alternate Rate Output Mapping Rules
  • Creating a Propagation Pattern
  • (Mandatory) Defining and Executing the Transfer Pricing Process
  • Reviewing Processing Errors
  • Accessing Transfer Pricing, Detail Cash Flow Results for Audit Purposes
  • Accessing Transfer Pricing, Interest Rate Audit Results
  • Analyzing Results
  • Reprocessing Erroneous Accounts