Personal Financial Statement
Statement about the financial situation of a person at a specific point in time.
To use this object, you must activate business function CRM-FS, Guided Loan Origination Process
(CRM_FS_NBRNWL_1
).
Personal financial statements are used when a business partner applies for a new product. A personal financial statement provides information about the financial position of a business partner and enables banks to capture all assets, liabilities, income and expenses of this person. The information provided is particularly important when the bank decides to provide a loan to the business partner.
The personal financial statement data is used to evaluate the open commitments of a business partner and their ability to undertake new commitments. For example, an investment property would be maintained in the personal financial statement as an asset with the outstanding mortgage as a liability and its associated rental income and expenses, such as utility bills, as income and expenses.
The information that is collected is important input for the ratios calculated by the system.
Structure
The personal financial statement consists of two main parts:
A statement of income and expenses
This statement is a quantitative description of the different income and expenses that are accrued for a business partner for a certain period. Income can be generated from employment, assets or investments. Expenses can be generated from an asset or other obligations of the applicant.
Relevant calculations
The result of this statement is the calculation of the disposable income. The disposable income is the income that is available to pay for the product in question, for example for interest rates or monthly installments.
A statement of assets and liabilities
This statement lists all the assets and liabilities of a business partner. The information that needs to be collected for an asset or liability depends directly on the asset or liability type.
Relevant calculations
The result of this statement is the calculation of the net worth.
You can use the
BAdI: Calculations for Personal Financial Statement
(CRM_FS_BRF_BADI_PFS
) to calculate the total debt service ratio (TDSR) or other required ratios.
Integration
The personal financial statement application is implemented with the Extensible Objects (XO) framework (transaction XO_COCKPIT
). The Personal Financial Statement (FINANCIAL_STATEMENT
) business object type is configured in the XO framework.
The ratios in the personal financial statement are calculated by the Business Rule Framework Plus (BRFplus) tool. You can change how you calculate the financial ratios in a BAdI. For more information about the calculations, see BRFplus for Account Origination and Financial Calculations for Personal Financial Statements.