ProbMatrix
GRAP 104 · SOUTH AFRICA · EXCEL ADD-IN

GRAP 104 ECL.
From calculation to automation.

Purpose-built Expected Credit Loss technology for Municipalities and Public Sector Entities, delivered through experienced implementation partners in South Africa.

Equip your advisory team with the Expert Edition, or deploy a connected, recurring ECL workflow at your client organisation with the Automated Edition.

Request a Product Demo →Explore the Two Editions

Already being implemented for South African municipal engagements through local partner firms.

PROBMATRIX / GRAP 104
Illustrative product workflow
Expected Credit Loss Analysis
Risk factorPD
Recovery factorLGD
ExposureEAD
Historical data → Scenarios → Probability-weighted ECL
South African rollout experienceMunicipal implementation engagements through local firms.
Audit-review experienceAudited implementation experience; scope available for discussion.
Partner-led deliveryBoth editions are supplied through implementation partners.
THE CHALLENGE

Reliable ECL requires more than a spreadsheet result.

Municipalities and Public Sector Entities need defensible, repeatable estimates supported by historical collection data, current conditions, forward-looking information and clear calculation evidence.

01

Complex debtor data

Multiple account categories, ageing histories, repayments and recoveries can make inputs difficult to prepare consistently.

02

Inconsistent calculations

Disconnected spreadsheets and manual adjustments make recurring ECL exercises harder to reproduce and review.

03

Audit and reporting pressure

Finance teams need to explain assumptions, changing risk estimates and the basis of reported impairment allowances.

TWO EDITIONS · ONE PARTNER ECOSYSTEM

The right ECL solution for how you deliver.

Both versions are made available through Probmatrix's implementation partner network. Partners choose the Expert Edition for engagements or implement the Automated Edition at client entities.

For implementation partners

GRAP 104 Expert Edition

Calculate and deliver ECL for multiple client engagements.

Built for accounting firms, municipal finance consultants and GRAP 104 specialists who prepare impairment models and reporting support for Municipalities and Public Sector Entities.

  • Client-specific ECL modelling and calculation
  • PD, LGD, EAD and relevant forward-looking scenarios
  • Reusable methodology for different client portfolios
  • Supporting results for engagement deliverables

Partner licensing and permitted client usage are agreed commercially.

Discuss Expert Edition →
For partner-client deployment

GRAP 104 Automated Edition

Give your municipal clients a connected, in-house ECL workflow.

Deployed to Municipalities and Public Sector Entities through Probmatrix implementation partners. Built for recurring financial reporting and configured integration with an entity's approved systems and servers.

  • Approved server and source-data connections
  • Configured extraction, mapping and input checks
  • Repeatable ECL execution and scenario calculations
  • Review of assumptions and results by finance teams
  • Structured outputs for reporting and audit review
  • Partner-led deployment, UAT, training and support

Connectivity and automation scope depend on the entity's financial systems, infrastructure and implementation agreement.

Discuss Automated Edition →
SEE THE ACTUAL ADD-IN

Two editions. Familiar Excel interface. Distinct ways to deliver ECL.

Explore the real GRAP 104 ribbon interfaces. Expert gives implementation partners the modelling tools for client assignments; Automated adds operational controls for workflows deployed at Municipalities and Public Sector Entities through those same partners.

For implementation partners

GRAP 104 Expert Edition

Build, test and calculate ECL for your municipal clients.

Probmatrix GRAP 104 Expert Edition Excel ribbon interface

This ribbon provides access to RollRate, Model Selection, Model Validation, Normalization, Weightages, PiTPD and Expected Credit Loss.

Modelling and analytical controls for partner-led ECL engagements.

For partner-led client deployment

GRAP 104 Automated Edition

Configure repeatable ECL operations within the client environment.

Probmatrix GRAP 104 Automated Edition Excel ribbon interface

This ribbon includes PD, Get MEV Data, MEV Selection, Forward Looking PD, Expected Credit Loss, Parameter Settings, Server Setup, Save Logs and View Logs.

Workflow controls for server configuration, parameter settings and operational logs.

Actual Microsoft Excel ribbon screenshots supplied by Probmatrix. The selected feature set and configuration may vary by edition and implementation scope. Ribbon controls illustrate available interfaces, not a guarantee that all underlying processes run without user review.

AUTOMATED EDITION IN DETAIL

From municipal servers to structured ECL outputs.

The Automated Edition connects the organisation's source-data environment to a configurable calculation workflow, reducing repeated manual preparation and keeping reviews in the hands of the municipality or public sector entity.

  1. STEP 01

    Source systems

    Access authorised debtor ledgers, balances, ageing, collections and recoveries.

  2. STEP 02

    Data integration

    Map, extract, structure and validate approved information.

  3. STEP 03

    ECL engine

    Apply suitable PD/LGD/EAD or loss-rate approaches and scenarios.

  4. STEP 04

    Review controls

    Review assumptions, exceptions, scenario weights and results.

  5. STEP 05

    Reporting

    Prepare structured impairment and supporting outputs.

Deployment is configured to suit each entity's infrastructure and access policies. The illustrated workflow describes available implementation capabilities; specific interfaces, scheduling and controls are confirmed during scoping.

PORTFOLIO COVERAGE

Designed for different financial assets, not one-size-fits-all impairment.

Municipalities and Public Sector Entities manage different types of financial assets. The modelling approach depends on instrument classification, credit-risk characteristics and the available information.

01

Contractual & lease receivables

Lifetime ECL using the simplified approach. Segment debtor balances, analyse ageing and payment history, estimate historical loss behaviour and incorporate current and forward-looking information. Provision-matrix or roll-rate-based approaches may be suitable.

02

Loans & long-term receivables

General ECL approach where applicable, including assessment of significant increases in credit risk (SICR), 12-month or lifetime ECL, recovery assumptions and appropriate consideration of the time value of money.

03

Investments, deposits & bank balances

Assess relevant counterparty credit risk using available internal information, appropriately sourced external ratings or benchmarks, exposure characteristics and suitable recoveries. The applicable approach depends on classification and instrument terms.

Important scope distinction: contractual receivables may fall under GRAP 104, while statutory receivables are dealt with under GRAP 108. Classification decisions remain with the reporting entity and its advisers.

MODELLING & CONTROL

Technical depth where it matters. Clear outputs where they're needed.

Probability of Default (PD)

Historical default behaviour using relevant roll-rate, observed-default, Markov and survival approaches where suitable.

Loss Given Default (LGD)

Recovery histories, cure behaviour and recovery horizons to estimate potential loss after default.

Exposure at Default (EAD)

Exposure estimates based on financial instrument characteristics, including outstanding gross balances for typical receivables.

Forward-looking analysis

Macroeconomic factors, scenarios, scenario weights and probability-weighted impairment estimates.

Calculation transparency

Support for reviewing portfolio segmentation, inputs, modelling assumptions and outputs.

Methodology selection depends on instrument type, data availability and the applicable GRAP 104 measurement requirements. A PD/LGD/EAD decomposition is not mandatory for every portfolio; suitable loss rate methods may be appropriate for receivables.

REVIEW & GOVERNANCE

ECL estimates that teams can explain and challenge.

The calculation is only part of the process. Sound implementation also needs clear assumptions, appropriate review and reconciliation to underlying finance records.

Segmentation & default settings

Apply portfolio risk groupings, ageing buckets and documented default parameters. GRAP 104 includes a rebuttable 90-days-past-due default presumption.

Validation & calibration

Use statistical tests and comparisons of estimated versus realised performance where data and the selected methodology permit.

Management adjustments

Apply supportable parameter adjustments and overlays for material risks not adequately reflected in core model outputs, subject to review.

Repeatable reporting-date runs

Rerun the Add-In with updated period-end data and appropriately refreshed assumptions, reducing dependence on manually linked workbook formulas.

Documentation support

Use calculation outputs and validation information as inputs to methodology papers and audit enquiries. A comprehensive GRAP-specific documentation report is not claimed as fully automated.

Accounting responsibility

The entity and its advisers remain responsible for classification, model selection, discounting treatment where applicable, final disclosures and sign-off.

GRAP 104 CONTEXT

Aligned with expected credit loss principles.

GRAP 104 requires appropriate impairment estimates for relevant financial instruments, considering historical information and reasonable, supportable current and forward-looking information.

For receivables subject to the simplified approach, lifetime ECL is measured without an additional significant-increase-in-credit-risk staging assessment. Other financial instruments can be subject to different requirements.

Read the authoritative GRAP 104 guidance ↗

Designed to support

  • Appropriate lifetime ECL methods for receivables
  • Risk segmentation and historical loss information
  • Current and forecast economic adjustments
  • Scenario-specific and probability-weighted estimates
  • Supporting calculations for finance and audit review
REQUIREMENTS & SOFTWARE COVERAGE

See how the Add-In maps to GRAP 104 requirements.

Explore a transparent, requirement-by-requirement comparison of GRAP 104 ECL implementation areas and Probmatrix functionality, from ageing and lifetime ECL to forward-looking adjustments, validation, documentation and disclosure responsibilities.

View GRAP 104 Requirements vs Add-In Coverage →

A searchable 22-area comparison table.

OUR DELIVERY MODEL

Your Clients. Your Implementation. Our Technology.

Probmatrix works with South African professional firms to deliver GRAP 104 Expected Credit Loss solutions to Municipalities and Public Sector Entities.

We equip our implementation partners with the GRAP 104 Excel Add-In, technical training and comprehensive product documentation, enabling them to independently manage client engagements, ECL calculations, implementation and ongoing support.

Our role is to provide the underlying technology, product updates and specialized backend technical support whenever required.

P

Implementation Partners

Own the entire client delivery process.

  • Manage client relationships, project scoping and implementation.
  • Assess financial instruments and select appropriate ECL methodologies.
  • Collect, prepare and validate client data.
  • Configure risk parameters, economic scenarios and ECL calculations.
  • Review model outputs and prepare supporting reports.
  • Deploy the Expert or Automated Edition according to client requirements.
  • Conduct client training and provide first-line support.
T

Probmatrix

We provide the technology and empower our partners.

  • Provide licensed access to the GRAP 104 Expert and Automated Editions.
  • Deliver technical training to implementation partners.
  • Provide product documentation, user guides and implementation guidance.
  • Maintain and enhance the Add-In's calculation engine and functionality.
  • Provide backend technical assistance and troubleshooting to partners.
  • Support partners with specialized product-related issues when required.
M

Municipalities and Public Sector Entities

Retain ownership of their financial reporting process.

  • Provide relevant financial records and authorized system access.
  • Review and approve significant assumptions and ECL results.
  • Maintain responsibility for accounting policies, financial reporting and governance decisions.

A Partnership Built for Independent Delivery

Partners manage implementation and client relationships. Probmatrix provides the technology, training, documentation and backend support needed to help them deliver GRAP 104 ECL solutions.

COMMON QUESTIONS

Frequently asked questions

Can a municipality or public sector entity obtain the Automated Edition directly?

The Automated Edition is supplied and implemented through Probmatrix's authorised implementation partners. Probmatrix can introduce enquiries to the appropriate partner-led process.

Who uses the Expert Edition?

Implementation firms and professional advisers use the Expert Edition to perform ECL calculations for their municipal and public-sector engagements, subject to licensing terms.

Can the Automated Edition connect to our financial system?

It supports configured connections to approved servers and data sources. The exact approach depends on available interfaces, system architecture, data permissions and security requirements; compatibility is confirmed during assessment.

Can a municipality or public sector entity's finance team run recurring ECL calculations internally?

Yes. The Automated Edition is designed for in-house execution of configured workflows, with continued review and approval of assumptions and results by the organisation's responsible personnel.

Does GRAP 104 require a PD/LGD/EAD model?

No. The relevant standard determines the ECL measurement requirement, not a single mandatory calculation architecture. Depending on portfolio characteristics, a loss rate or another supportable methodology may be appropriate.

Has the solution been audited?

Probmatrix has audit-review experience involving the solution and municipal ECL work. The precise scope, outcome and any shareable evidence can be discussed during commercial evaluation; this does not amount to blanket regulatory certification or automatic audit acceptance.

Do all assets use lifetime ECL?

No. Receivables and lease receivables under the simplified approach use lifetime ECL. Relevant loans and investments under the general approach may require 12-month or lifetime ECL, depending on significant changes in credit risk.

Does the Add-In generate a complete GRAP 104 financial-statement disclosure pack and audit trail?

The Add-In provides calculation and validation outputs that support review. Full financial-statement disclosures are entity-led, and comprehensive run-level logging, methodology documentation and disclosure schedules may require additional configuration or development.

How does the partner-led implementation work?

Probmatrix supplies ECL calculation technology to its implementation partners. Partners manage their engagements, requirements assessment, rollout, training and agreed first-line support; municipalities and public-sector clients retain responsibility for data and accounting decisions.

LET'S DISCUSS YOUR IMPLEMENTATION

Ready to make GRAP 104 ECL more repeatable?

Whether you are an implementation partner looking to expand service delivery or a Municipality or Public Sector Entity exploring internal automation, request a demonstration. Automated Edition enquiries are coordinated through our partner network.

Request a Demo by Email →
info@probmatrix.ioVisit Probmatrix