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Change in Calc Date in FWZZ

Hi Gurus,

I have concerns regarding the Calc. Date under the "Condition items" section of FWZZ.

The user was expecting that the interest accrual will be computed on 01/31/2018 (month end) and not on 02/01/2018, however, the last interest was calculated and posted on 02/01/2018. When I checked, the reason is because the Calc. Date was set to 02/01/2018 where due date and end term is also the same.

I made a research and found that "Calculation Date" is the date that represents the end of a calculation period for interest calculation. This made me assume that the reason why the interest was calculated on 02/01/2018 is because of the Calc. Date. Let me know if my assumption is correct.

The question is, there are other securities that are set this way where Due Date is the first day of the month and Calc. Date was set on Due Date as well. If my assessment is correct that the last interest is calculated based on the Calc. Date, can we just change the "Calc. Date" to end of the month for example, 04/30/2018 where Due Date is 05/01/2018?

I actually tried to change one of the securities Calc. Date but it wad disabled and locked though I can actually add row and change the "Calc. date", I want to know what is the effect of changing the Calc. date to previously posted interest? Is the change will only affect the succeeding schedule?

Your inputs and expertise are highly appreciated.

Thanks,

PA Reyes

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2 Answers

  • Apr 19 at 11:39 AM

    Hi PA,

    >>> I made a research and found that "Calculation Date" is the date that represents the end of a calculation period for interest calculation.

    Yes, correct


    Mnth End flag is to check if date is on Month end and adjust that date to Month End , days 28, 29, 30, 31. if you want interest to be on end of Month, set the date to the end of month and add the flag, otherwise you will get end of date you put in FWZZ.


    If you check/uncheck the flag Mnth End with a date other than Month end , don't you get any warning ?

    Kind Regards

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  • Apr 26 at 09:12 AM

    Hi PA,

    Please check cash flows after doing changes in interest condition type every time before saving.

    1.Yes , Calc. date is the date up to which interest calculation has been performed, and also you can change the Calc.date to the end of month, for this:- double click on interest condition -> click on date tab -> Mark Mnth-end for 1st date in calculation date category.

    if Mnth-end checked for 1st date in due date category please uncheck it.

    Now you can change the "Calc. Date" to end of the month for example, 04/30/2018 where Due Date is 05/01/2018

    2. If you change the Calc. date of previous period, there will be no impact of previously posted interest , but a new Scheduled interest will be created in that period.

    For example: Condition 1 Interest :- Eff from date:01.04.2014, Calc Date:31.03.2015 Frq:012

    Suppose interest for the period 01.04.2015 to 31.03.2016 is already posted and you have added another row of interest condition in FWZZ

    i.e condition 2 Interest :- Eff from date: 01.04.2015, Calc date:02.04.2016 frq:012,

    then a new scheduled flow will show in TPM12 report having no impact on previous posted flow. such as

    Interest: fixed 31.03.2016

    Interest: Scheduled 02.04.2016

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