Oracle® Rules Palette Release 9.1.0.0.0 E15811-01

# Step 5: Configure the Transaction that Runs Valuation

Certain transactions you configure will require that a policy is valued because money was either moved in, transferred between funds or withdrawn. Transactions such as Withdrawal, FullSurrender or Additional Payment would affect the policy’s value hence the valuation would need to be configured.

There are four major areas to consider when configuring a transaction that will run valuation.

1. Allocation

2. Valuation

3. Math

4. Assignment

### Allocation Configuration

Allocation configuration will define the funds where money will either move in or out. Using <Allocation> elements and attributes will create the allocation structure displayed on the transaction. The logic you configure for the allocation structure defines the funds included, excluded, the method in which allocations can be made and other guidelines for what is displayed for an OIPA user. You should have already set-up the funds in the system prior to configuring allocations. Refer to the section on Adding Funds for additional information. Refer to the Allocations pane section to review the steps for configuring transaction level allocations.

Allocation records will be created and stored in the AsAllocation table.

### Valuation Configuration

Valuation configuration tells the system to run the valuation engine. Running the valuation engine means the system will create a valuation structure in memory that pulls all the policy records in the AsValuation table and performs core and configured calculations. Then any needed calculation values can be passed to the transaction's <Math> section. <MathVariables> then can be passed to <Assignment> to tag money in or out. Assignment configuration uses the Allocation information and then writes a new record to AsValuation for each Allocation by Assignment and Money type. It is this process of the system creating the valuation structure (going to the ValuationCalculation rule, PolicyValues rule, other rules, back to the transaction configuration and then writing a record to AsValuation) that the valuation syntax performs.

In the Rules Palette, the valuation engine is configured in the General pane.

Valuation Check Box and Field Descriptions

- The Valuation checkbox should be checked if the transaction will need to run valuation.

- This MUST be checked if you are configuring Assignments.

- This MUST be checked if you want to pull values from the Valuation XML.

- The Effective Date checkbox should be checked if you want to use an As of Effective Date for the valuation and override the date set as the activity's Effective date for valuation.

- The Effective Date Type drop down box allows you to select whether you want to use the system date or a field value as the As of Effective Date.

- If you want to use an As of Effective Date that is a field, then you can select a field from this drop-down box.

- The field needs to already be configured in the transaction for this to be populated.

If this box is checked, the Net Unit Values(NUVs) as of the activity Effective Date must be present in order for the activity to process at all. If there are no NUVs, then the system displays an error message stating, NUV’s Missing (Effective Date).

If this box is not checked for a variable product and no NUV’s exist for the Effective Date, then the activity will process as much of the Assignment as it can and will return the Activity Results screen. The Activity Results screen will still display a lightning bolt icon next to the activity with a status of NUV Pending until NUV’s are added for the Effective Date. After NUV’s have been entered for the Effective Date and either the lightning bolt is clicked again or Cycle is run, the Activity Status will change to either Gain/Loss Pending (if there are no NUV’s for the System Date) or Active (if NUV’s exist for the System Date). This is not recommended for variable products.

Note: This box should never be checked for Fixed products.

If this box is checked, NUV’s as of the System Date must be present in order for the activity to process at all. If no NUV’s are present, the system displays an error message stating, NUV’s Missing (System Date).

If the box is unchecked for a variable product and NUV’s do not exist for the System Date, but NUV’s are present for the Effective Date, then the activity will process in its entirety, except for the calculation of any Gain/Loss. The Activity Results screen will display a lightning bolt icon next to the activity with a status of Gain/Loss Pending until NUV’s are added for the System Date. After NUV’s have been entered for the System Date and either the lightning bolt is clicked again or Cycle is run, the Activity Status will change to Active and Gain/Loss will be calculated.

Note: This box should never be checked for Fixed products.

Valuation XML Syntax

<Valuation EFFECTIVEDATE=”FieldName”>

<EffectiveDateNUVMustExist>No or Yes </EffectiveDateNUVMustExist>

<SystemDateNUVMustExist>No or Yes </SystemDateNUVMustExist>

</Valuation>

### Math Configuration

In the <Math> section of the transaction, you can use values in the valuation structure. In order to do this you need to use the field MathVariable type. You must use Valuation as a prefix. In the value field, you will continue to prefix separating each node in the valuation structure with a colon until you have the value you want. The name of the MathVariable will then store the value you want.

In the Rules Palette, configure a field MathVariable and use Valuation for the field prefix. This tells the system to retrieve a value from the XMLData structure in the AsValuationXML. Sample Valuation Prefixes.

Step 1: Configure a Field Math Variable

1. Click the transaction's Math pane.

2. In the Search Palette window, select the Field MathVariable and drag it onto the Math section under Hierarchy.

3. Enter the name for the MathVariable. Make sure the new MathVariable is selected.

4. Select the Data Type.

5. Enter Valuation in the Prefixes field.

6. Enter the node names separated by a colon (:) and the actual name of the field with the value you want to retrieve in the Value field.

### Assignment Configuration

The assignment element is used to configure the application of money in or out of a policy. This has an impact on the policy’s value. Assignment processing controls the creation of AsValuation records, which record deposits into and out of funds listed in the Allocation record. Assignment processing is triggered by the presence of the Assignment configuration within a transaction’s configuration. An assignment must have a money type associated with it, since money can be applied to a policy from different sources and it must be tracked for auditing and tax purposes.

- The application of money-in needs to come from a source, whether it is from an allocation or a positive money value from a field or MathVariable.

- The application of money-out should be from a negative money value from a field or MathVariable.

The Rules Palette offers a variety of ways to assign money-in and money-out. Depending on which assignment you pick, the system will require certain input and will process money in or out in a certain manner. For a complete list of assignment types, view the V9 XML Configuration topic in this help system. Select Transaction Rules | Transaction Elements | Assignment Elements.

For detailed steps on how to configure assignments in the Rules Palette, see the Assignment section.

XML Transaction Assignment Syntax

<Assignment TYPE="Apply">

<MoneyType NAME="GrossAmountMV">01</MoneyType>

</Assignment>

Note: Assignment for a variable fund’s net asset value used for valuation units uses the effective date of the activity to calculate valuation and gain/loss. The net asset value used is for the current system date from AsSystemDate table.