Two Year Average

This workbook includes the automatic calculation of 2 year (24 month) averaging. The workbook compares the Current Year (CY) income to Prior Year (PY) and computes more conservative value based on the trend i.e. if CY is lower than PY, then it will choose CY and if CY is greater than PY, then it will use the 24 month average as a ‘default’ value. However, the default value can be overridden using the drop down. See below:

Exclude from Calculation

To exclude the income related to a particular entity, type “X” in the box as shown. The amounts will be excluded from the total income calculations and grayed out, showing the entity was considered in the analysis. 

Profit and Loss Statement

The P&L feature for each multi-instance work paper allows you to enter the monthly amounts from the profit and loss statements manually. If you opt to enter the profit and loss amounts manually, then the amounts that flow from the borrower’s tax returns are not considered in the QI calculations.