Member Profitability

System Management System Management Member Profitability

1. Introduction

The Member Profitability module in the FLEX system is an optional feature that enables credit unions to define specific parameters for assessing the profitability of their members. This documentation provides a technical overview of its functionalities, configuration, and reporting capabilities.

2. Accessing Member Profitability

The Member Profitability module can be accessed through the FLEX Main Menu:

  • Path: Member Relations > Member Profitability

3. Member Profitability Maintenance

This section details the configuration options available within Member Profitability Maintenance.

3.1 Groups & Transactions Tab

This tab is crucial for defining what constitutes revenue and expense for profitability calculations.

3.1.1 Groups Panel (Top)

The top panel displays all configured groups of items. Groups are used to categorize items as either revenue or expense.

  • Actions:
    • Add: Click to create a new group.
    • Edit: Highlight an existing group and click to modify its details.
    • Delete: Highlight an existing group and click to remove it.
    • Audit: Review changes made to groups.
  • Group Fields:
    • Group: A four-character identifier for the group (e.g., TLLR).
    • Description: A descriptive name for the group (e.g., TELLER TRANSACTION).
    • Group Type:
      • E – Expense
      • R – Revenue
    • Per Transaction Fee: The fee amount associated with each transaction within this group. This amount is considered an expense or revenue for the credit union.
      • Example: A TLLR group with a Per Transaction Fee of 1.00 means each teller transaction incurs a $1.00 expense for the credit union.

3.1.2 Transactions Panel (Bottom)

The bottom panel defines the specific transactions that will be used to calculate revenue or expense for a highlighted group.

  • To View Transactions: Highlight a group in the top panel and then click “Transactions” to display the sequences of transactions linked to that group.
  • Actions:
    • Add: Click to add a new transaction parameter.
    • Edit: Highlight an existing transaction and click to modify its details.
    • Delete: Highlight an existing transaction and click to remove it.
    • Audit: Review changes made to transactions.
  • Transaction Fields (General Information):
    • Sequence Number: Each set of transaction parameters requires a different sequence number. Each sequence can support up to 10 types of parameters.
      • Note: If more than 10 parameters are needed for a specific category (e.g., tellers), an additional transaction entry with a new sequence number must be created.
    • Group ID: Displays the group ID to which this transaction belongs.
    • Group Type: Indicates how the group type will be used for calculation:
      • A = Transaction Amount (e.g., dividends on shares, fees)
      • I = Loan Interest (e.g., loans)
      • C = Count (e.g., transaction count)
    • Transaction Description:
      • If the description from historical data is used to identify the transaction, enter it exactly as it appears in history.
      • If other identifiers (e.g., Teller IDs, Transaction Codes) are used, leave this field blank.
  • Transaction Parameters (Maintain Options):
    Each of these options allows you to specify what will be used to identify transactions. Click “Maintain” to add or remove codes for each category.

    • Account Types:
      • Indicates the account types relevant to the group.
      • Example: For dividend expense, this might include all share and certificate types. For loan interest expense, it would include all loan types.
    • Teller IDs:
      • Specifies the teller IDs to be considered for this group.
      • Example: System tellers like DV (share dividends) or CP (certificate dividends).
    • Tran Codes:
      • Defines the transaction codes to be looked at for this group.
      • Example: Loan payments might use code 06 (cash/check) or 16 (transfer). Share dividends might use code 12 (credit to shares).
    • Op Codes:
      • Indicates the Operation Codes relevant to this group.
      • Example: For Cashier’s Checks and Money Order expenses, CC for Cashier’s Checks and MO for Money Order can be added.

3.2 Cost of Funds Tab

This tab allows the credit union to define the cost of funds for any group or type for a specific month and year. This setup is optional.

  • Actions:
    • Add: Click to add a new cost of funds parameter.
    • Edit: Highlight an existing entry and click to modify it.
    • Delete: Highlight an existing entry and click to remove it.
    • Audit: Review changes made to cost of funds entries.
  • Cost of Funds Fields:
    • Month / Year: Specifies the month and year for this cost of funds entry.
    • Cost of Funds: The percentage value used for calculating the cost of funds. This value is determined by the credit union.
    • Use Group / Use Type:
      • Use Group: If selected, the system will apply the cost of funds to all types associated with the chosen group code (e.g., all share types if a share group is selected).
      • Use Type: If selected, each specific type code (e.g., a particular certificate type) must be added individually.

4. Updating Profitability History

After configuring groups, transactions, and optionally, cost of funds, the profitability history must be updated. This process reads historical member account data, identifies profitability based on the defined parameters, and updates member files.

  • Access: Member Relations > Member Profitability > Update Profitability History
  • Parameters:
    • Clear history before Build?
      • Indicates whether previously built profitability history should be cleared before the new build.
    • Use Job Date for build month?
      • If selected, the system’s job date will be used as the build month.
    • Month to be Built:
      • Enter the specific month to use for building the profitability history.
    • Year to be Built:
      • Enter the specific year to use for building the profitability history.
  • Note: History can be rebuilt by re-running this program for any month/year that was accidentally cleared (either by selecting “Yes” for “Clear history before Build?” or by using the “Clear Profitability History” option).

5. Clearing Member Profitability History

This option allows users to clear profitability history for a specified date range.

  • Access: Member Relations > Member Profitability > Clear Profitability History
  • Parameters:
    • Beginning date to be Cleared: Enter the start date for the history to be cleared.
    • Ending Date to be Cleared: Enter the end date for the history to be cleared.

6. Reporting

Member Profitability provides visual reports and a detailed report.

6.1 Graphs

Profitability graphs are available within the Inquiry drop-down menu in Transaction Entry/Inquiry.

  • Graph Types:
    • 12 Month Timeline: Displays revenue, expenses, and net profitability over a 12-month period.
    • One Month Pie: Presents a pie chart breakdown of revenue, expenses, and net for a single month.

6.2 Member Profitability Report

This report provides detailed profitability data based on the date range and sorting parameters entered.

  • Report Content:
    • Account Number
    • Name
    • Type
    • Date
    • Group
    • Group Description
    • Account Total (Revenue, Expense, Net)
    • Report Total (Revenue, Expense, Net)