Adding Sub-Instrument Assumptions

Use Setup > Assumptions > Sub-Instrumentsto add new sub-instrument assumptions.

1. Navigate to Setup > Assumptions > Sub-Instruments.
2. Select to add a row of blank assumption fields.
   Several blank rows can be added at one time.
3. Select the Application that this assumption is used for.
   • Loan
   • Maturing Deposit
   • Deposit (Non-Maturity)
   • Service
4. For Activity ID, enter a numeric transaction code that identifies the activity in the statistical files.
   For example, suppose that a transaction code of 112 in a statistical demand deposit account (DDA) file is an ATM fee. When you enter 112 for Activity ID and select Service Fee for the Rate Type, you are telling the system that you want transaction code 112 included in service fees.
   Note: The combination of Activity ID, Rate Type, and Calculation Type must always be unique. However, Activity ID itself does not need to be unique. It is possible to have several codes that are the same. In addition, the combination of Activity ID and Activity Name does not need to be unique.
5. Enter the user-defined Activity Name that appears when viewing the sub-instrument Profitability information.
6. Select the Rate Type.
   • Deposit Fee - Non-maturing deposit fee income
   • Loan Fee - Transaction loan fee
   • Service Fee - Revenue on services
   • Direct Expenses - Used for direct expense allocations
   • Overhead Expenses - Used for overhead expense allocations
7. Select the Calculation Type.
   • A
   • B
   • C
   • D

   These codes determine the formula that the system uses when assumptions are run.

   Sub-Instruments Calculation Types

   	A	B	C	D
   Definition	Volume * Rate = Amount	Transaction Amount * Rate = Amount	Transaction Amount / Rate = Volume	Transaction Amount with Volume defaulted to 1 per transaction.
   Volume	Sum of the number of lines in the statistical file.	Sum of the Transaction Amount in the statistical file.	Volume = Amount / Rate	Sum of the number of lines in the statistical file.
   Rate	From assumptions.	From assumptions.	From assumptions.	Amount / Volume
   Amount	Volume * Rate	Volume * Rate	Sum of the Transaction Amount in the statistical file.	Sum of the Transaction Amount in the statistical file.
   Example	Apply an expense to the count of ATM withdrawals.	Apply expenses to volume of debit card activity.	Used when there is a standard rate for a fee and more than one item per transaction.	Loan fees and analysis deposit fees. Fees are not always the same amount.
   	Typically used for expense allocations.	Typically used for both deposit fee (DE) and deposit fees (DF) related to debit card usage.	Typically used for NSF / overdraft (OD) fees, where there is a standard charge per item.	Typically used for fees that can vary. No standard charge per count.

8. Select the Rate Format.
   • $ - Whole number
   • % - Percentage
9. Enter the Rate.
   This user-defined value has four decimal places and is used for calculation types A, B, and C.
10. Select Save.