Overview
In the 'Other' tab you can capture pricing attributes of fee-based product and services. These can be products like Treasury or Cash Management Services, Merchant, Credit Card, Wealth Management, Trust, or Other Servicing fees including Fees, Services, and Safe Deposit Box.
When you're pricing a new opportunity, you will enter the estimated annual fees associated with the account type in the Other Products section of the Opportunity pricing screen.
In this Article
How to Add Other Products
From an existing Opportunity, you can select the 'Other' tab on the right hand side to add, remove, and view the other accounts associated with this opportunity. Select 'Add' and you will see a list of possible Other Products that you can add to the Opportunity. This list is completely customizable and should represent the types of Other Products that you typically price at your institution.
Types of Other Products
There are five types of Other Products:
Activity Based: The customer incurs a fee, represented as a line item, each time they use the product.
Annual Revenue and Balance: Allows pre-tax income to be entered for the purposes of generating annual income for any number of products that carry a balance.
Annual Revenue: Similar to Annual Revenue and Balance with the major difference being the absence of a balance entry.
Expected One Time Revenue: Allows revenue you have a one-time chance of receiving from events such as an IPO to be entered; this revenue is annualized.
Actual One Time Revenue: Similar to Expected One Time Revenue, but the probability is always 100%. It represents an upfront fee that is recognized in Year 1, but averaged over the term for lifetime unweighted. It is possible to configure it with or without the Term input.
Activity-Based Fees
This is an activity-based fee. Notice that the Annual Revenue and Balance fields cannot be edited.
- Eligible for Earnings Credit
- If used in conjunction with a deposit product that has earnings credits, a credit will be applied and shown on the financial statement as Applied Earnings Credit for Other Income.
- This line item will display in the info pop-up for other income, in the Other Column (in grey), not the individual other product column(s).
- Estimated
- Estimated times per month this fee will be incurred.
- Waived
- Amount of times per month this fee will be waived.
- Chargeable
- Amount of times per month this fee will actually be charged (Estimated minus Waived).
- Unit Price
- Cost per unit charged to the borrower.
- Monthly Revenue
- Revenue gained monthly from this product per month.
- Monthly Expense
- Our expense per month for this product.
- Net Income
- Income after taxes for this product.
Annual Revenue and Balance / Annual Revenue
This is an Annual Revenue and Balance type of Other Product. If we were pricing an Annual Revenue type, it would look identical except it would be missing the Balance entry.
- Description
- You may add a description for this product.
- Revenue
- Annual revenue of this product.
- Balance
- Average balance for this product; only applicable if capital needs to be held. If no capital is involved, leave this balance blank.
- Net Income
- The annual after-tax income on this product.
- Net Income = Pretax Income x (1 - Tax Rate)
- Return
- Return for this product; only calculated if there is a balance for this product.
Expected One Time Revenue
This is an Expected One Time Revenue type of Other Product. Notice that the Balance field cannot be edited.
- Description
- You may add a description for this product.
- Revenue
- Shows the Expected Revenue; select this field to open the Revenue pop up.
- One Time Revenue
- The revenue amount.
- Probability
- The probability you will receive the One Time Revenue.
- Expected Revenue
- Calculated by multiplying the One Time Revenue by the Probability. The displayed Expected Revenue is an annualized expected revenue value over the term defined in the Estimated Months From Closing field.
- Estimated Months From Closing
- The estimated amount of time, in months, after this deal closes you expect to receive this revenue.
-
Estimated Months From Closing Expected Revenue Term 1 - 11 1 Year 12 - 23 2 Years 24 - 35 3 Years ... ... - Annualized Revenue
- The amount of revenue you will receive yearly; the full amount is spread over the life of the loan this is attached to.
- Balance
- This field cannot be edited.
- Net Income
- The annual after-tax income on this product.
- Return
- Return for this product; only calculated if there is a balance for this product.
Actual One Time Revenue
This type of product has a probability of 100% and can be configured with or without the Term input.
- Description
- You may add a description for this product.
- Revenue
- Shows the Expected Revenue; select this field to open the Revenue pop up.
- One Time Revenue
- The revenue amount.
- Term
- Only available if enabled in the product configuration. If not visible, the term is set to 12 months.
- Annualized Revenue
- The amount of revenue you will receive yearly. If Term is enabled, the full amount is recognized in Year 1, but averaged over the Term for lifetime unweighted.
- Balance
- This field cannot be edited.
- Net Income
- The annual after-tax income on this product.
- Return
- Return for this product; only calculated if there is a balance for this product.