Lending Cloud - help.onlinequity.com...Lending Cloud Level 1 Agriculture Consolidation v2.1 Page 1 of 12 Lending Cloud Level 1 Agriculture Training Guide Module 6 Consolidation NOTE:

Lending Cloud Level 1 Agriculture Consolidation v2.1 Page 1 of 12

Lending Cloud Level 1 Agriculture Training Guide

Module 6 Consolidation

NOTE: Screen captures displayed may not always match each individual financial institution.

System configurations and user roles will affect functionality and appearance.

Lending Cloud includes the option to consolidate the Balance Sheets, Income/Expense, Debt

Schedule/Credit Relationships, Deposit Relationships, and Collateral Analysis of two or

more entities at a summary level to build reports and/or Credit Presentations.

For this example we will be using a primary agriculture business entity, XYZ Farms, an additional

agriculture business entity, ZYX Farms, and an individual entity, John Smith.

Before creating a Consolidation, the following preparation steps should be completed for each of

the entities listed above:

Create all Balance Sheets.

Create all Income/Expense.

o Link each Income/Expense to the appropriate Balance Sheet.

Enter your financial institution’s loans (in the training example these are Universal Bank loans)

to the appropriate Balance Sheet.

Link the Debt Schedule to the appropriate Balance Sheet.

o Do not double up! If a loan involves more than one of the entities, just list it on one.

As needed, enter the new/proposed loan to the Debt Schedule on the main borrowing entity

(XYZ Inc.).

Confirm the loans with your bank for each entity appear on their respective Debt Schedule.

Create a Collateral Analysis for each entity.

If your financial institution uses Deposit Relationship, confirm all deposits are entered for

each of the entities to be consolidated

Enter any Related Entities that are not one of the entities to be consolidated.

o For example: enter Joan Smith as a Related Entity for John Smith (his wife).

Create a new Customer Record for the Consolidation

1. Locator > Add Customer or

File > Add New Customer.

2. Complete the New Customer

Setup.

3. Include Global in the Business

Name (XYZ Farms Global).

4. Complete the remaining fields.

5. Save & Continue.




Consolidation Setup

1. Select General > Consolidation > Consolidation Setup.

2. From the Consolidation Setup screen displayed below, click Select Entity to Consolidate.

3. Customer Lookup: select XYZ Farms, ZYX Farms, and John Smith.

6. Select the General Information

Models for the Individual Accounts

and Entity Accounts.

7. Check Copy Employment and/or

Copy Latest Credit Report as needed.

8. Click Save & Return.

4. Click the link (↓) to add the Customer

to the list.

5. Click Add to Consolidation Setup.




Create Consolidated Financials

1. Enter the Balance Sheet and Income/Expense dates and descriptions per example below.

2. Click “None” in each column to select the Balance Sheet and Income/Expense from the pop

up for each of the Entities per example below. Determine display order as needed.

3. Select Save & Stay.




Eliminations

To review and eliminate any duplication in the Balance Sheet and/or the Income/Expense

consolidations, select B.S. or I/E in the appropriate year to edit.

2. Select Save & Back.

1. Click B.S. in the Sample 3 Cons.

column to review any duplications

of Assets or Liabilities .

a. For example: XYZ and ZYX

both have the Real Estate

Land asset but the total is

only $1,000,000, not

$1,700,000. Long Term

Debt-Ours has a loan listed

for both XYZ and ZYX as

well. Eliminate the duplication as shown below.




Update

2

1. Click Update.

2. Click OK when this popup appears.

3. If you only updated one entity, select the

specific entity to update, or Check All.

4. Save & Continue.

5. Click OK when the All entities have been updated popup appears.

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Create Consolidated Financials

Select Create Consolidated Financials to create the financial statements for XYZ Global after

the following steps have been completed:

1. Check the Show Financials in Credit Action box.

a. If you have already setup your Credit Action, you will need to refresh it separately

to ensure the new consolidated information has been included.

2. Eliminations (see page 4).

3. Adjustments to any of the Entities in the consolidation.

a. If you accessed one of the entities and made any adjustments, for example added as

asset for ZYX Inc. you would need to click Update for the consolidation to include

the additional asset.

4. Update the Consolidated Entities (see page 5).

5. Click Create Consolidated Financials.

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6. Select Mark All to consolidate the financials for all three years.

7. Select Consolidate Financials.

8. Select Trends Manager.

9. Drag and Drop the Balance Sheets and Income/Expense statements to the columns.

10. Save & Stay.

11. Click View BS Trends and View IE Trends for the XYZ Farms Global consolidated financials.

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Balance Sheet Trends

The Balance Sheet has an Agriculture section and a Personal section, the Grand Totals (fully

consolidated) are at the bottom of the page.

Only displaying a couple of small

sections of the XYZ Farms Global Balance Sheet Trends page.




Income/Expense Trends

The Income/Expense Trends also has an Agriculture section and a Personal section, the Grand

Totals (fully consolidated) are at the bottom of the page.

Only displaying a couple of small

sections of the XYZ Global Income/Expense Trends page.




Debt Schedule

The Credit Relationship tab is also populated with the consolidated information.

The information entered in the Debt Schedule for

each of the entities (XYZ Farms., ZYX Farms, John

Smith) is included in the XYZ Farms Global

consolidation on a new tab titled Consolidated Debt.




Collateral Analysis

The Collateral Analysis created for each of the entities is not included in the consolidation and will

need to be created. After you create the Cons. Collateral Analysis any updates to the entities will

also be updated in the Cons. Collateral Analysis if relevant. Follow the steps to create a new

Collateral Analysis outlined in Module 5 for “Our” loans and “Prior” loans.




End of Lending Cloud Level 1 Agriculture


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Lending Cloud - help.onlinequity.com...Lending Cloud Level 1 Agriculture Consolidation v2.1 Page 1 of 12 Lending Cloud Level 1 Agriculture Training Guide Module 6 Consolidation NOTE: