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Adding Other Products to an Opportunity

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From an existing Opportunity, you can click on the 'Other' tab on the right hand side to add, remove, and view the other accounts associated with this opportunity. Click '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.

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 pretax 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. 
  • Projected Revenue Schedule
    • Allows you to include additional revenue income for products within your opportunity. This income will be included in the financial statement.

 

Activity-Based Fees

Activity Based Fee

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
  • 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

Annual Revenue and Balance

 

 

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

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; click the PrecisionLender logo next to 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
  • Estimated Months From Closing
    • The estimated amount of time, in months, after this deal closes you expect to receive this revenue
  • 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.

 

Projected Revenue Schedule

Projected_Revenue_Opportunity_Screen.png

 

This is a Projected Revenue Schedule type of Other Product.

  • Current Relationships Projections
    • If a relationship is attached to the opportunity, the expected relationship income projections for each year in the opportunity based on historical data from Relationship Awareness will appear here.
  • Additional Revenue Tied to this Deal
    • The revenue expected to be earned from the products each year of the opportunity.
  • Regulatory Capital Projections
    • If there are any regulatory capital projections for each year of the opportunity, they will be entered here.
    • For computations, the regulatory capital will equal the amount entered by the lender in this field.
  • Economic Capital Projections
    • If there are any economic capital projections for each year of the opportunity, they will be entered here.
    • For computations, the economic capital will equal Operational and Market Risk Capital Allocation * Projected Revenue (Values determined during product set-up) + the economic capital amount entered by the lender in this field.
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