This article explains how to directly manage your client's balance sheet by creating and editing Asset & Liability records.
Many firms receive a data feed from a portfolio management tool using one of our integrations; however, there may be assets and liabilities managed outside of that tool that you wish to capture or additional information that isn't available from the data feed, such as percentage-based ownership of the asset. Practifi provides a natural home for this information, alongside your client's engagement history and detailed profile.
- Where to find them
- Creating new records
- Editing records
- Summarising AUM values
Where to find them
Assets and liabilities aren't available from the app navigation menu as they rely on being viewed within the broader context of a client or prospect record. The Financials section of those record pages contains a set of tabs - one for Assets, one for Liabilities - that shows you what's been captured against that record:
In this example, assets for the Feldmans are being sourced from Addepar as a data feed, updated daily. The Assets and Liabilities tabs above the record table allow you to switch between tables depending on what you want to look at.
Creating new records
When adding these records manually, use the New Asset and New Liability buttons to create each record type, respectively. Each brings up a comprehensive form; complete as many of the fields as you can based on the available information, then click Save to create the record.
Roles and ownership
When you create an asset or a liability, the system requires ownership to be assigned to it to enable reporting in other areas. As a result, either the related Individual or the primary contact of the related Household or Organization is assigned 100% ownership of the asset or liability when created. This can be edited later on if it needs adjusting.
To disable this, check the “Suppress Automatic Role Creation" checkbox when creating the record.
By default, only the Name field is mandatory when creating assets and liabilities due to the variable data quality between sources and across firms. Your firm can take more control of this by adding validation rules that make additional fields mandatory or enforce certain values.
Like other records in Practifi, you can edit the fields for an asset or liability record by selecting Edit from their row menu in a record table, or you can access those same fields alongside other related information from the record page:
In the example above, we're looking at an Asset from the Feldman household; however, Liabilities have an identical layout to their record page. The page comprises multiple types of information, accessible from the page's tabs:
- Basics - Contains the fields stored on the Asset or Liability record directly. Edit them by clicking the pencil icon next to each one.
- Both Assets and Liabilities display different fields in their Basics sections; this is the major difference between them.
- Holdings - Displays a list of the holdings - individual bonds, shares or other financial instruments - held within the asset.
- These are typically sourced from a data feed; however, the New Holding button in the record header allows you to create your own.
- Holding records are editable in the same manner as Assets and Liabilities.
- The "Has Holdings" and "Number of Holdings" fields are automatically populated based on the presence of Holdings against the Asset.
- Roles - Displays a list of the people who a portion of the asset or liability, expressed as a percentage.
- Use the New Role button in the record header to add new owners to the record.
- Ownership percentages should add up to 100%; however, this is not enforced by the system. Be sure to check the values you enter to ensure they add up as intended.
- Processes - Displays a list of processes linked with the record via the "Related Asset/Liability" field on the Process itself.
- Open Tasks and Task History - Both tabs display lists of Tasks - open or completed ones respectively - linked with the record via the "Related To" field on the Task itself.
- Notes & Files - Displays two lists, one each for notes and files. Store documents or formatted free-form text alongside any asset or liability that requires additional reference material.
- Feed - Displays the record feed, which allows you to make posts that notify other team members and which will also become available on the record feed of the parent household, organization or individual.
Limitations with data feeds
Please note that while assets sourced from data feeds can be edited, these changes will typically be overridden by the source system the next time it's updated (usually once a day).
- If your firm exclusively uses a data feed to source asset information, we recommend making changes in the source system directly.
- If your firm has a combination of data feed assets and ones created manually in Practifi, use the Source field on the records to differentiate between them, as data feeds automatically populate this field with the source's name.
Summarising AUM values
Rollup summary fields perform simple calculations - adding or counting typically - across many records related to the record where the field itself is found. The AUM field on Client records is a rollup summary that calculates the total value of all Assets where:
- The "Under Advice" checkbox has been populated.
- The "Service" lookup relates to a Service that is both active and related to the Client.
The AUM field is displayed on the Client record page directly - both in the Basics section and as a Key Field - as well as record tables, reports, dashboards and other product areas. If the numbers you're seeing don't look accurate, check to see if your Asset records are aligned with the above criteria.