Question
Is validation rule v4574_m correct?
Background on the question
The validation rule formula states: {r360} = min({r330}, 0.75 * max({r300} - {r310} - {r320} / 0.9, 0)) We think the '/ 0.9' part should be deleted from this validation rule as row 320 shows the full amount (100%) of the inflows subject to 90% cap. Therefore it is not necessary to correct for 90% by dividing 0.9 in the formula.
Answer
Validation rule v4574_m is aligned with the formula set out in Annex II of the Commission Delegated Regulation (EU) No 2015/61. In practice, the reduction for inflows subject to the 75% cap is calculated based on the total outflows already adjusted for inflows that are fully exempted from the cap and also for those inflows that are subject to a 90% cap. This is the reason why the amount of inflows from row 320 of the template C 76.00 of Annex XXII of Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) is divided by 0.9, in order to reflect the actual adjustment to the total outflows.