Financial statement template configuration

A financial statement template enables lending institutions to select and arrange different financial statement configurations for evaluating businesses and individuals.

Templates are a collection of configurations that drive the structure, calculations, and layout of each financial statement. You can define the following types of templates:

Balance Sheet
Income
Cash flow
Financial Ratios
UCA Cashflow
Global Cashflow

Q2 Origination supports an unlimited number of templates enabling financial institutions to manage different spreading configurations for different products or scenarios. As part of creating a template, you must first define a placeholder template and then add different line items as template details.

Note:

You cannot delete a template that is being used by any financial statement (i.e. If there is a single financial statement added for an Account , then deletion of template is not allowed)

Prerequisites

Before you proceed to create a financial statement template, ensure that the following prerequisites are met:

The initial configuration is created in the system.

Note:
To know how to verify the initial configuration, see Financial spread configuration.
Global Cashflow Template of Type Global Cashflow must be added.

Note:
This template is seeded in the Q2 Origination package.

Steps

To create a financial statement template:

Log in to your Salesforce account.
Go to ( App Launcher) > Origination Configuration.
Select Financial Statement Template.

Select New.

Field Name

Description

Financial Statement Template Name

Specify a suitable name for the financial statement template. For example, S-Corp/Partnership Templates.

Type

The supported options are:

- Additional Schedules - This is to add the additional schedules as part of the income statement capture. For example Schedule income statements.
- Standard Financial Statements - This is to generate financial statements such as balance sheets and income statements for a business or an individual.
- Global Cashflow - This is to generate the global cash flow statement.
  
  Note:
  As part of the Q2 Origination package installation, four new rows are automatically seeded in the Global Cashflow Template. These rows are used to pull the Annual Debt Service information into the Global Cashflow Statement.

Alias

Specify the alias by which the template may be leveraged in another template.

Note:

This field is important as this is used when this template is referenced in another template. For example, in a global cash flow statement where cash flow from all the statements is considered.

Go to Related.
In the Template Details section of the displayed page, select New.

Note:
All the line items/ template details of a financial statement are configured on this page. For example, Assets, Current Assets, Cash & Equivalents are the line items of a balance sheet.
Specify the details as described in the following table and then select Save:

Example: Balance Sheet Statement

Example: Additional Schedule Template

The following line items are added to the Sole Prop Schedule C template:

Example: Global Debt Service Coverage Template

The following line items/template details are seeded in the Q2 Origination package as highlighted in the following image:
- Total Annual Debt Service(Annual Payment)
- Total Annual Debt Service(Sensitised)
- Total Senior Debt(Annual Payment)
- Total Senior Debt(Sensitised)

Example: Global Debt Service Coverage Statement

Field Reference Table

Field Name	Description
Base Value for Common Sizing	Select this checkbox if you want to consider this line item as a base value for performing common sizing. Note: This field is displayed only for template details of the balance sheet and income statement. For the balance sheet, Total Assets, or Total Liabilities + NetWorth, and for the Income statement, Net Sales are considered for common sizing. Only one template detail can have this flag as true.
Template Detail Name	Specify a name for the line item/template detail. For example, Assets. This value must be UNIQUE per Template
Template	This is the template name for which this template details is defined. This field is auto populated based on the statement template that you have selected.
Type	The supported options are: Header - This option is used to group a set of line items. Users can't specify a value for this type. For example, Current Assets can be the header under which you can include items like Cash or Accounts Receivables. Input - This option is used to specify a value when a user needs to specify a value. Rollup - This option is used when the line items above the ROLLUP line item need to be summed up and displayed the total value in the ROLLUP line item. For example, in the above Example: Balance sheet, the highlighted line item is a total of the above two line items, Cash & Equivalents, Marketable Securities. Compute - This option is used to compute when the user needs to calculate a value by using a mathematical formula (+, -. , /). Presentminusprev - Used when the user needs to see the difference between a line item's previous value and current value. It is majorly used in cash flow statements, to calculate the change year on year(Previous Year and Current Year) Query - This option is used to fetch the financial value/cashflow value needs to be fetched from another financial statement or from the Application. (Presentminusprev) - This option is used to fetch the positive difference between a line item's previous value and the current value. It is majorly used in cash flow statements. For example, If the Presentminusprev is -100, the value of (Presentminusprev) will be 100. Gdsquery - This option is used to fetch the cashflow value from various statements to create a Global DSC statement. This should be used only in Global Cashflow template to fetch the Cashflow value from Business Statements. For example, in the above example of Gloal Debt Service Coverage template, Cashflow from Business needs to fetch value from the Cashflow statement that is generated using the template scorpft. If the user has selected EBITDA as the Primary Cashflow Method, the system searched for EBITDA in the Cashflow statement that is generated using the scorpft template. Note:* As shown in the above example of Gloal Debt Service Coverage template, every Gdsquery must have a following template detail of type Rollup. And the name of this template detail must be specified in the Parent Template Detail of the previous line item such as Cashflow from Business. If a business has multiple parties and more than one parties are selected to generate the Global Debt Service Coverage (Global DSC) statement, this Rollup template detail is required to sum up the cashflow of all the parties and display that in the Global DSC statement. Note: The Header and Rollup are displayed in Bold.
Parent Template Detail	Select the template detail to which the line item is rolling up. For example, in the above image, Cash & Equivalents is rolling up to Total Cash & Marketable Securities. Hence, for Cash & Equivalents, Total Cash & Marketable Securities is the Parent Template Detail.
Expression	Specify the Expression or formula to calculate the value of the line item. Expressions can include other line item values and computations by referencing aliases in the following format: $Alias. Note: This field is used only when the Type field is specified as Compute. If Additional Schedules is selected as Type on the Details page of the Financial Statement Template, specify the Expression as $Alias of additional schedules template detail#. For example: If Standard Financial Statements is selected as Type on the Details page of the Financial Statement Template, specify the Expression as $Alias of template detail. If Global Cashflow is selected as Type on the Details page of the Financial Statement Template, specify the Expression as $Alias of the template, statement type, to fetch financial statement values from Business Financial Statement. For example, in the above example of Global Debt Service Coverage template, Cashflow from Business needs to fetch value from the Cashflow statement that is generated using the template scorpft. Hence, the Expression will be $scorpft,Cashflow. If Query is selected as Type while configuring a template detail, specify the Expression as $Alias of template,$Alias of template detail,statement type or $CalculationSetName, $fieldName. For example:
Alias	Specify the alias by which the template detail/line item is leveraged in the formula/expression. Note: Specify alias TCF for Traditional Cash Flow1, TCFCAPEX for Traditional Cash Flow2, EBITA for EBITA1, EBITDA for EBITDA C, and EBITDAR for EBITDAR1 in the financial statement template. These Aliases are displayed as options in the Primary Cashflow Method list while generating the Global DSC statement.
Level	Specify the Level. This determines the placement of the line items in a financial statement and the required indention. The level configuration is also used to display data relationships in the financial statement report output. For example, if Assets is displayed in the top row of the balance sheet, specify 01 in the Level field and for the next line item, specify 01.01.
Detail	Select the Detail record if you selected the Type field as Presentminusprev. This is the record for which the difference is computed. For example, if you want to compute the difference of Net Accounts Receivable value from the previous year, select Net Accounts Receivable as Detail and specify the Template Detail Name as Change in Accounts Receivable,which stores the difference between Net Accounts Receivable.
Statement Type	Select the Statement Type. Supported options: Income Balancesheet Cashflow Ratio UCACashflow Globalcashflow Note: This determines the financial statement, such as the balance sheet, income statement, or cash flow statement, that the line item is associated with the template bundle (also indicates ratio calculations). For example, to display Assets in the balance sheet, select Balancesheet.
Account Type	This is not mandatory.
Has Negative Value	If this checkbox is selected, the value entered for the line item is displayed as a negative value in the financial statement. For example, if the user has entered 4,000 for Cash & Equivalents, it will be displayed as -4,000 in the balance sheet, and if the user has entered -4,000 for Cash & Equivalents, it will be displayed as 4,000 in the balance sheet.
Label	Specify a value for this field if you want to have a different name for the line item than the Template Detail Name. If this field is specified, the specified value will be displayed in the financial statement.
Display on Financial Statement	Select this checkbox if you want to display this line item in the financial statement.
Template Group	Select the Additional Schedule template name that needs to be associated with the main income statement's line item. As shown in the above example of Additional Schedule, Sole Prop Schedule C is the name of the Additional Schedule, and it is associated with the Sole Proprietorship line item of the Personal Statement and Tax Return template. Note: This field is applicable to Additional Schedule.
Use For RollUp	Select this checkbox for the line item that needs to be displayed and considered in the main financial statement. For example, as shown in the above example of Additional Schedule, Net Cash Flow is the line item that is to be considered in the main financial statement. Note: This field is applicable to Additional Schedule.
Action	Edit - Select the down arrow and then select Edit on a template detail to edit the template details. Delete - Select the down arrow and then select Delete on a template detail to delete the template details.
Is Total Assets	Select this checkbox to activate the validation of total assets and liabiities on the financial spreads page. This checkbox must be selected for the statement type Balancesheet and only for the template detail name which represents the Total Assets value.
Is Total Liabilities	Select this checkbox to activate the validation of total assets and liabiities on the financial spreads page. This checkbox must be selected for the statement type Balancesheet and only for the template detail name which represents the Total Liabilities value.

Note:

Is Total Assets and Is Total Liabilities checkboxes must not be selected for the same Template Detail Name. If both the checkboxes are selected for the same Template Detail Name, an error stating, Please select either Is Total Assets or Is Total Liabilities checkbox is displayed.
If you select any of two checkboxes on more than one Template Detail Name within the balance sheet, the corresponding values will be added together respectively during the calculation.

Clone Financial Statement Template

Prior to the Oxygen release, modification of the existing financial statement templates and creating a copy of these templates were time-consuming activities. But now with the Oxygen release, Q2 Origination has been enhanced to support cloning of the financial statement templates and make the necessary updates to the template. This creates a newer version of the template. These changes do not impact the existing financial spreads of the financial institution’s customers.

To clone a financial statement template:

Log in to your Salesforce account.
Go to (App Launcher) > Origination Configuration.
Select Financial Statement Template and then select the financial statement template that you want to clone.
Select Clone.
Note:
- Specify a new name for the financial statement template and an alias for the same, and then select Save.
- The name and alias should be unique.
All the financial statement template details are copied on to the new template.