Configuring Rate Grid
This section explains the configuration of the Rate Grid.
Designing Pricing Grid using TPM
Temenos Product Manager (TPM) is the user agent to design products and pricing. The Pricing Grids option under the Pricing menu is used to design the Pricing Grid.
Designing the Pricing Grid Structure
The below screenshots illustrate the process of designing the Pricing Grid structure.
Defining the Pricing for the Grid Structure
The below screenshots illustrate the process of defining the Pricing for grid structure.
Pricing Grid Product Condition
The user can configure Rate Grids by entering,
- Required data elements in Criteria ID
- Target element (of Interest) in the Target ID
- Criterions for the expected pricing definition
The target elements belong to Interest property class such as fixed rate in the Pricing Grid product condition of the Pricing Grid product.
The created subject product condition is attached in the Product Designer record for the Pricing Grid property.
Term and location-based Rate Grid can be defined as shown below.
Read Attributes section in Pricing Grid for more information on Criteria ID, Target ID, Criterions, and Targets.
Read Data and Target Elements for more information on data and target elements.
A Gird can be defined using Rate and Margin targets together as Rate grid but cannot be combined with charge related targets. Charge related targets must be defined in a separate grid as Charge grids.
Product Versions
As the Pricing Grids product line supports product versioning (Line Attribute is defaulted as Version Enabled), the system maintains the version numbers for the Pricing Grid product when the product undergoes proof and publish. The system also tracks the current version of the Pricing Grid product that is linked in the arrangement in AA.ARRANGEMENT.
When the Pricing Grid product is created and undergoes proof and publish, the system considers this as version 0.
When the Pricing Grid product undergoes proof and publish again, the system maintains version as shown below.
Interest Property Class
The user can configure the Pricing Grid product index using a set of fields in the Interest property condition. However, the system uses core set of fields for processing the Interest definition.
|
Attribute |
Description |
|---|---|
| User Rate Type |
Specifies the interest rate type such as fixed, floating, periodic. This attribute is a part of multi-value set to define tiers. |
| User Rate Grid |
Specifies the Interest Rate Grid (that is, Pricing Grids Product ID). |
| Usage Percent Basis |
It supports the below values.
|
| User Usage Percent |
The percent defined is applied on the rate based on Usage Percent Basis. |
| User Spread Type |
Specifies the spread type like single margin, cost of funds, and so on. It is part of sub-value set in association with User Spread Oper and User Spread Rate. |
| User Spread Oper |
Specifies the operator of the spread type like Add, Multiply, Sub. |
| User Spread Rate |
Specifies the spread rate for User Spread Type. |
| User Tier Amount |
Specifies the tier amount of the tier. It is part of the multi-value set in association with User Rate Type, User Rate Grid, and so on. |
| User Cust Margin Grid |
Specifies the customer margin grid (that is, margin grid) product ID, that is, the grid which is structured with margin related target elements. |
| User Cust Margin Oper |
Specifies the customer margin operator (that is, Add, Sub, Multiply). |
| User Cust Margin Type |
Specifies the customer margin type (that is, single margin, cost of funds, and so on). |
| User Cust Margin Freq |
Specifies the margin reset frequency of User Cust Margin Grid. |
| User Periodic Method |
Specifies the method the system applies when it does not find periodic interest rate in the correct bucket. The system automatically applies a method to arrive at a rate chosen by this method, that is, Closest, Next, Previous. |
| User Periodic Period |
Specifies the interest period to be used. |
| User Periodic Reset |
Specifies the reset period of the index defined in User Rate Grid. The system automatically resets the rate at the frequency stated in this attribute. |
Pricing Grid feature (User Rate Grid) is mutually exclusive with core attributes fixed rate, floating and periodic index.
Interest Product Condition
The user must define User Rate Grid with the Pricing Grid Product ID as index in the interest condition of the financial product.
The user must set the Interest property to Pricing Grid Index Enabled property type in AA.PROPERTY as a pre-requisite.
To use the location-based Pricing Grids product (PG009) as the index in the Interest condition, the user defines the Pricing Grid Product ID in User Rate Grid and User Rate Type in the subject interest condition at the arrangement-level or the product-level.
Refer to Working with Rate Grid to view the working illustrations of Rate Grids.
Rate Types
Pricing Grids support the following rate types.
- Fixed – The system does not track the rate in arrangement condition when there is change in the Rate Grid (Pricing Grids Product).
- Floating – The system tracks the rate in the arrangement condition when there is change in the Rate Grid.
- Periodic – The system tracks the rate in the arrangement condition periodically as per the frequency.
Rate Change
The user can trigger rate change activity (ASSET.FINANCE-CHANGE-LEASEINT) to update User Rate Grid and User Rate Type.
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