Q Factor Adjustments

Q Factors are qualitative factor coefficients that you can apply to all your accounts in a group so that you can weigh them.

Use Q Factors in Current Expected Credit Loss (CECL) calculations to justify why account loss reserves are at the current level and to model the effects of adjustments to reserves based on multiple factors.

When you have the necessary permissions to edit or view Q Factor Adjustments, a Q Factor Adjustments link appears on the Analysis tab on the CECL Summary page. The link opens the Q Factor Adjustments setup page.

Q Factors are saved and stored monthly. When the monthly update occurs, your Q Factor settings for the prior month are copied forward. Individual account adjustments are also copied forward if the individual account numbers still exist in the account file. Use the calendar on the setup pages to enter or adjust expected loss adjustments for historical months.

  • Adding Q Factor Adjustments
    Use this information to add Qualitative Factor Coefficient (Q Factor) Adjustments for Current Expected Credit Loss (CECL) calculations.
  • Working with Category Q Factors
    Use this information to adjust Qualitative Factor Coefficients (Q Factors) that have an Adjustment Level of Category.
  • Q Factor Results in CECL Analysis Grids
    Qualitative Factor Coefficient (Q Factor) results appear on every Current Expected Credit Loss (CECL) Analysis grid.
  • Q Factor Adjustment Reporting
    Use this information to view Qualitative Factor Coefficient (Q Factor) Adjustments in grid exports and in Current Expected Credit Loss (CECL) reports.
Parent topic: CECL