Using Grid Pricing

Grid Pricing enables you to model varying interest rates over time by incrementing or decrementing rates based on company performance against a metric.

  To use grid pricing:

  1. Access Forecast Method.

    See Accessing Forecast Methods.

  2. Select Structured.

  3. From Forecast, select Forecast Method.

  4. Click Advanced.

  5. Select Using grid pricing.

  6. Click Edit Grid.

  7. In Base Grid Pricing on, browse to or select a criteria account.

    This account becomes the metric for measure.

  8. In Comparison to use, select how to compare to the criteria account:

    • Less than

    • Less than or equal to

    • Greater than

    • Greater than or equal to

  9. In Adjust by, select an adjustment type:

    • Adding

    • Subtracting

  10. In Reprice, select the frequency of calculation. The system adjusts rates at the beginning periods. Options:

    • Annually

    • Semi-annually

    • Quarterly

    • Monthly

  11. In the Grid Pricing table, click Add to create rows. Then click in cells to enter values:

    • Criterion in Millions of Dollars

      In this column, enter the value of the criteria in the same scale as the account.

    • Adjustment in Percent

      This column is the effect on the rate, as a decimal. For example, if the rate rises a quarter of a point, enter .25.

    • To delete, select a row and click Delete.

    • To reorder, select a row and click the arrows.

  12. Click OK .