Pricing Opportunities with Offset Accounts

Offset Accounts will need to be enabled by an Admin at your organization, and can only be added to Opportunities where Line of Credit (LOC) is an allowable Payment Type.

 

When pricing an Opportunity, the ‘Offset Account’ field will display on the bottom left side of the Opportunity Screen. The default status for Offset Accounts is ‘Disabled’ when pricing a New Opportunity. Once the Offset Account is enabled, a window will open allowing users to input the account details. Note: the second field is the Offset Account Value Type populated from the Product configuration (‘Balance’ shown below).

 

opportunity_offset_account.png

 

The financial impact of the Offset Account is displayed in the Financial Statements and Amortization Table. In the Financial Statements, the annualized Offset Account Impact is a component of Interest Income, and will always be a negative value. Select the “i” icon next the Interest Income value to open a window showing the Offset Account Impact.

 

offset_financial.png

 

To view the monthly impact of the Offset Account, navigate to the Amortization Table within Advanced Analytics. Opportunities with an Offset Account enabled will display an added column in the Amortization Table labeled Offset Account Impact.

 

offset_amort.png

 

Below you will find the calculation for the monthly financial impact, based on Offset Account Value Type.

 

Value Type

Formula

Balance

Offset Account Impactm = -1 * (Spread / 12) * Balancem

Percent of Average Balance

Offset Account Impactm = -1 * (Spread / 12) * Percent of Average Balance * Average Balancem

Percent of Commitment

Offset Account Impactm = -1 * (Spread / 12) * Percent of Commitment * Commitmentm

 

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