COMPRENSIÓN Y PREPARACIÓN DE LOS DATOS

After defining product templates, product qualities, and options, you can define your financial products. Financial products are required for all contracts. At the time of contract origination, you must select a product. The options and their defined values, which are associated with the product, populate the terms and conditions page during contract origination. You also can assign stream types to a product for accrual.

Additionally, you can define non-financial considerations such as location.

• You determine the value of the product quality at the time you set up your products.

Note: You must add a seeded quality value to the seeded quality or qualities in the product template associated with the product. For more information, see Seeded Contract Classification Parameters, page E-1.

Prerequisites

All product templates, qualities, and options you intend to use must be pre-defined.

You also must define your accounting template set prior to defining a product because you are required to select an accounting template set when you set up your products.

Steps

Perform the following steps:

1. Click Create in the Products page.

The Create Product page appears.

2. Complete these fields:

• Name: Type the name of the financial product.

You may want to search for and select the Product Template and Accounting Template Set first, then name this product similarly, as a subset of its parent categories.

• Description (optional): Type a brief description of the product.

• Product Template: Search the existing product templates and, from the list, choose the product template to associate with the product. (Only ONE product template can be associated with a product.)

• Accounting Template Set: Search the existing accounting template sets and, from the list, choose the template set to associate with the product.

In this field, you determine what kind of accounting entries are needed for this product.

Important: It is extremely important that all the possible accounting entries that might be used during the life of the contract be

included in the accounting template set. For more information, see Define Accounting Template Sets.

• Select a financial product as the reporting product. The reporting product is the basis for both accounting in the secondary ledger for the contract/asset/investor agreement transactions, and for generating the Multi-GAAP Adjustment Report.

• Effective From/Effective To: Set the valid dates for the life of the product. The Effective From date is mandatory, while the Effective To date is optional.

Important: Note the following conditions on defining a financial product:

• The primary product and associated accounting template set and stream generation template are the basis of downstream transaction processing and accounting in the primary ledger.

• The reporting product and associated accounting template set and stream generation template are the basis of dow stream transaction processing and accounting in the secondary ledger.

• The following conditions apply to the selection of a reporting product that is used for Multi-GAAP accounting:

• The revenue recognition method of the primary and the reporting product must be the same.

• The interest calculation basis of the primary and the reporting product must be the same.

• If the book classification of the primary product is Lease (Direct Finance, Operating Lease, or Sales Type Lease), the book classification of the reporting product must be the same.

• If the book classification of the primary product is Loan, then the book classification of the reporting product must also be Loan.

• If the book classification of the primary product is Revolving Loan, then the book classification of reporting product must also be Revolving Loan.

• The pricing engine of the stream generation templates associated with the primary and reporting products must be the same.

3. Click Save and Add Details to enter quality values. Otherwise, click Apply to add details later.

4. To add quality values to the product, click the Quality Values subtab in the Product details page and click Update.

Note: You defined qualities at the time you configured your product templates. At this time you must associate a value with each associated quality.

5. Choose the value to associate with the product quality.

6. Click Apply.

7. Click the Accrual Streams subtab in the Product details page to associate stream types with the product for accrual.

The Accrual Streams subtab lists the stream types that you have already associated with the product for accrual. The table shows the hypertext-linked stream type name, and whether the stream type is set to accrue.

Note: If you chose the Depreciation stream type, you should not mark it for accrual while defining a product because Oracle Assets, not Oracle Lease Management, creates the depreciation accounting entries.

8. Click Update to add new stream types for accrual and modify the accrual for existing stream types.

For Lease financial products, after streams have been set to accrue, you can subsequently change the accrual.

9. Click the name of a stream for which you want to change the accrual flag.

The Accrual Stream Details page appears, displaying a selection box labeled Accrue, for setting the accrual flag. Available values are Yes, accrue, or No, do not

accrue. Then click Apply.

After you receive a successful update confirmation, you may choose List of Accrual Streams. The stream that you changed now displays the updated accrual flag (Yes or No) in the Accrue field.

10. Repeat the steps for each stream type accrual flag setting you want to change.