Correction for the issue in data model:
SELECT PARTY_ID FROM HZ_PARTIES WHERE (PARTY_ID IN NVL(:PARMPARTY_ID, party_id))
Replace the NVL with COALESCE and use the below SQL Statement:
SELECT PARTY_ID FROM HZ_PARTIES WHERE (COALESCE(null, :PARMPARTY_ID) is null) OR (party_id IN (:PARMPARTY_ID))
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