5.3.12.3.1 Defining Forecast Balances Using Node Level Assumptions

Node Level Assumptions allow you to define assumptions at any level of the Multi Dimensional Balance Sheet Structure (MDBSS) hierarchy. The MDBSS supports a hierarchical representation of your chart of accounts, so you can take advantage of the parent-child relationships defined for the various nodes of your MDBSS hierarchies while defining rules. Children of parent nodes on an MDBSS automatically inherit the assumptions defined for the parent nodes. However, assumptions directly defined for a child take precedence over those at the parent level.

Prerequisites

Performing basic steps for creating or editing a Forecast Balance Rule.

Procedure

To define Forecast Balance, follow these steps:

1. Navigate to Forecast Balance page.
2. Select Forecast Balance Method. Based on selected Method, Forecast Balance page will differ.
   • New Add

     Figure 5-159 Forecast Balance-New Add

     
     

     

     
     
     • Enter Balance values for Buckets.
     • Click Apply.

     You can also use the Excel Export feature to download the data in Excel format.

   • Target Average

     Figure 5-160 Forecast Balance-Target Average

     
     

     

     
     
     • Enter Balance values for Buckets.
     • Click Apply.

     You can also use the Excel Export feature to download the data in Excel format.

   • Target End

     Figure 5-161 Forecast Balance-Target End

     
     

     

     
     
     • Enter Balance values for Buckets.
     • Click Apply.

     You can also use the Excel Export feature to download the data in Excel format.

   • Target Growth Percent

     Figure 5-162 Forecast Balance-Target Growth Percent

     
     

     

     
     
     • Enter Balance values for Buckets.
     • Click Apply.

     You can also use the Excel Export feature to download the data in Excel format.

   • Rollover

     Figure 5-163 Forecast Balance-Rollover

     
     

     

     
     
     • Click Create button to select a Target node. The Hierarchy page will appear.
     • Select the MDBSS node for the rollover and click Ok.

       Note:

       You can use Search functionality to search a MDBSS node. The searched node will display in Search Results tab.
     • The selected MDBSS node(s) will appear in Define Time Buckets and Percentage section of Select Target and Assign Runoff Categories.

       Figure 5-164 Forecast Balance-Rollover

       
       

       

       
       
     • Select the desired runoff type (Total, Prepay, Maturity, Payment, Core, Volatile, Devolvement, Recovery, or NPA).
     • Click Apply to navigate to Define Time Buckets and Percentages
     • Define the input bucket ranges. You only need to define multiple bucket ranges if you want to vary rollover assumptions by modeling buckets. The bucket ranges defined here only apply to rollover occurring from the source leaf to the target leaf. You must have at least one bucket range defined. Typically, you define a bucket range from the first modeling bucket to the last modeling bucket, covering the entire modeling horizon. To define a bucket range, perform below steps:
       • Add Time Bucket using + icon. Default bucket is 1 and you cannot delete this.
       • Select a Time Bucket. Based on selected Time Bucket, start bucket date and end bucket date will display.

         Figure 5-165 Forecast Balance-Rollover

         
         

         

         
         
       • Continue adding time buckets until all desired ranges have been defined. Expand the Time Bucket to add percentage.
     • Enter the percentage rollover for the given Target.
     • Click Apply.

     You can also use the Excel Export feature to download the data in Excel format.