An explanation of the Processing screen is shown below:
The system will recognize there have been assumption changes made and will display a warning message on the Process/Review tab as shown below. Changes are saved but results are not accurate until processing is completed.
Before processing you may decide whether you want to see results with or without growth assumptions. This allows you produce results with a static or dynamic balance sheet.
If you want to produce results without assumptions (and have the system use the current balance as the target balance in all projection periods), check the Growth at Cur. Balance only box before processing.
To process results, the system provides two options.
Process All - This button will perform a complete processing of the chart of accounts. Progress messages are displayed throughout.
During the processing, the system relies on all the detail information it downloaded during the capture process to perform very accurate income calculations. All factors influencing the income, such as rate changes, rate constraints (periodic limits or life time caps and floors) are taken into account during the calculation process.
The date and time of last Process All is displayed at the bottom left of the screen. This will let the user know when/if they processed the advanced modules after capture or changes.
Process Selected - If only selected assumptions were changed that affect only certain accounts, the Process Selected option can be used. With this option, the selected account and all accounts contained within the account will be processed.
Another step in processing is balancing to your Fed Funds
Balance - The balance check box, which is checked by default, will prompt the system to perform the balancing process of the complete chart of accounts. The "Fed Funds Sold" and "Fed Funds Purchased Account" will be used as the balancing mechanism. To balance, a Fed Funds position is determined, Income or Expense is calculated for the chosen Fed Funds. This Income or Expense changes the Net Income position, which flows back into the Current Profit account. This process is repeated until the total chart is in balance by less then $0.01.
To save processing time, the Balance check box can be unchecked during what-if analysis, when the effects of assumptions on selected accounts are studied. This will skip the balancing process.
Appl Outage - The general ledger is out of balance to the selected application file. This is an information only field. When a GL outage occurs, the item balance on the GL differs from the item balance of all the detail in IRR2. If the application is out of balance to the GL, it will be located above the Process Selected button in a blue font.
Many circumstances create application outage and recommend this be researched as to why the application is out of balance to the general ledger. Two areas to check are the GL (current) and projections to ensure Total Assets equal Total Liabilities plus Total Capital after processing to help ensure there are no problems with the Chart of Accounts.
Find Account By Description
The option Find Account can be found if you right click on any account in the chart of accounts. This will help you quickly find a specific account in your chart of accounts.
See Target Balance Options in the Advanced Income Shock module for the Find Account details.