Funding functionality

The first step to getting the Funding module up and running is to set it up. Once the area is set up, you can start setting up suppliers (bank), credit lines, loan tranches, deposits, customers (banks) and bank guarantees. In the module, the user has access to reports that appear in the Reports tabs.

For Funding, there is a separate rolecenter OneCore – Funding.

To use the functionality, you need to set up:

• REFI Codes

• REFI Rates

A description is given in the Business Setup.

Supplier – Bank

A bank providing a credit facility will be established with the help of the wizard for setting up a partner (Address book) – must be created as a contact and supplier. In this documentation, we focus on entering data related to the actual functionality of the funding.

The Vendor's data related to Funding can be found on the Vendor tab in the Funding tab:

Field:

• Bank (Funding)          

  • parameter to designate Supplier (bank) that provided the credit facility

• Abbreviation (Acronym)

  • text field where the user can manually enter the abbreviation for the given Vendor (bank)

Vendor bank account

The account to which the borrower repays tranches is entered into the standard BC tables – vendor account. The account can be entered from the Vendor card, via Vendor -> Bank accounts. After confirmation, you will see an overview of your bank accounts.

After double-clicking on a bank account, its card will be displayed (or via Edit).

In the "General" tab, the user enters the basic parameters of the bank account.

In the "Connections" tab, the user enters the connection used for communication in connection with the account.

In the "Transfer" tab, the user enters the SWIFT Code, IBAN.

List of Financing Banks

The list of banks for funding can be displayed by the user via the Vendors (banks) option.

After confirming the Vendor (bank) selection, a list of financing banks will be displayed. In this window, the system displays vendors who have entered the parameter Bank (Funding) = YES in the Funding tab.

Loan Frames

The list of credit limits can be displayed by the user via the Credit Frames option in the role center (see above).

After confirming the Credit Frames option, an overview (list) of Credit Frames will be displayed.

The user can see the credit frame data directly in the list of credit frames or on the credit frame card, which opens after clicking on the credit frame in question.

New Credit Limit

The user can create a new credit limit from the list of credit limits using the New button. When you click on the New button, a blank credit frame card opens.

Field:

• No. (No.)

  •  Unique designation of the given credit line, mandatory field

• Limit Amount

  • Loan frame amount, to be filled in manually by the user

• Currency Code

  • The currency code of the credit frame is entered by the user by selecting from the code list. If the loan frame is in the local currency, then the field remains blank

• Bank (Bank)

  • The code of the bank providing the credit line. The user enters by selecting from the list of vendors (banks) that have been marked with the parameter Bank (Funding) = YES.

• Overdraft Account No.

  • The user selects the overdraft account number from the bank account code list, which will be used in the "Tranche repayment progress" report

• Contract Date

  • Date of conclusion of the credit framework agreement, the user enters the date manually or via the calendar

• Due Date

  • The maturity date of the credit frame, the user enters the date manually or via the calendar

• Due Date Shift

  • The user chooses from the values Before, After, In Due Date

• Last Draw Date

  • The date of the last possible drawing of the loan, the user enters the date manually or via the calendar

• Current Loan Frame Amount

  • Displays the sum of tranches drawn within the given frame

• Commitment Fee (%) (Commitment Fee (%))

  • The user manually enters the amount of the commitment fee in % (from the frame height)

• Min. výška tranší v měně rámce (Min. Tranche Amount in Curr.)

  • The user manually enters the minimum amount of tranches in the currency of the given frame, if the user enters a lower amount on the created tranche for the given frame, then the user is shown an error message

• Limit Amount to KTK in Frame Currency (Overdraft Loan Amount in Curr.)

  • The user manually enters the frame height to KTK in the currency of the given frame

Loan Tranche

A complete list of loan tranches can be viewed by the user via the Loan Tranches option.

After confirming the Loan Tranches option, an overview (list) of loan tranches will be displayed.

The user can view the tranches of the given frame by filtering in the loan tranche overview.

New Credit Tranche

A user can create a new loan tranche:

• from the list of credit limits using the Create Tranche button. The loan tranche is created under the framework that has been specified by the user:

• from the loan frame detail using the Create Tranche button (or Action/ Create Tranche). Tranches are created below the frame that was opened by the user.

After pressing the Create Tranche button, the system first displays the following query:

Open

After selecting Yes, you will be asked if the user wants to view the newly created tranche card:

Open

After confirming by selecting Yes, the detail of the created tranche will be displayed.

Field:

• Loan Frame No.

  •  The system will automatically display the loan frame number from the frame from which we are creating the tranche.

• No. (No.)

  • Tranche number, consisting of the loan frame number and the sequence number of the tranche. The tranche number is created automatically by BC, but can be overridden

• Tranche Name

  • To be entered manually by the user

• REFI Code

  • Selected by the user from the table of REFI codes, is an optional field

• Comment

  • To be entered manually by the user

• Spl. Type Calendars (Payment Calendar Type)

  • The user selects from the following values:

    • Linear = linear amortization of the principal, interest is calculated by the system

    • With an annuity payment = the same amount of payment in every period, the payment breaks down into principal and interest.

    • Manually generated = used for importing payment calendar from Excel

• Draw Date

  • Does the user enter the date of drawing the tranche manually or via the calendar

  • The following applies: Frame Contract Closing Date =< Drawdown Date =< Last Frame Draw Date.

• First Principal Payment Date

  • Does the user enter the date of the first principal payment manually or via the calendar, from which the calculation of the repayment calendar is based

  • The following applies: Drawdown Date =< First Principal Payment Date =< Frame Due Date.

• Tranche Due Date

  • Does the user enter the due date of the tranche manually or via the calendar, from which the calculation of the repayment calendar is based

  • The following applies: First Principal Payment Date =< Tranche Due Date =< Frame Due Date.

• Payments Last Day of Month

  • The user enters it manually, the check mark determines whether the payment should always be made on the last day of the month

• Payment Interval

  • The user selects from the following values:

    • Once

    • Monthly (default value)

    • Quarterly

    • Semiyearly

    • Annually

• Amount

  • The input amount of the tranche is entered manually by the user, while the Min. amount of tranches in the currency of the frame =< Volume and at the same time Total Amount of Frame – The sum of the outstanding principal amounts of tranches under the given frame.

• No. of Payments

  • The system calculates the number of tranche payments automatically if the value of the field is based on the parameters First Principal Payment Date, Tranche Due Date and Payment Interval. The value of the field is recalculated even if the fields change.

  • Can be overridden.

• Principal Amount

  • for Payment Calendar Type=Linear, BC is automatically calculated as Volume/Quantity. For Payment Calendar Type<>Linear, Empty, and Non-Editable.

• Tranche ID

  •  The system will generate automatically when a tranche is created

• Tranche Type

  • User selects from Fixed and Variable values

• Base Rate %

  •  The default value is tightened according to the REFI code

  • The user can change the value of the base rate in %, it is used to generate a payment calendar

• Actual Base Rate %

  •  For the new tranche, the value of the field is taken from the Base Rate % field, the field is non-editable

  •  If the value of the field is Tranche type=Variable, then the field shows the current rate for the payment bill as of the working date

  •  If the value of the Tranche Type=Fixed field is then the rate remains the same

• Interest Margin %

  • To be entered manually by the user

• Liquid Costs % (Liquid Costs %)

  • To be entered manually by the user

• Interest Rate % (Interest Rate %)

  • The system calculates automatically based on the formula = Base Rate+Interest Margin+Liquid Costs

• Interest Calculation Method

  • The user selects from the following values:

    • 30/360 – fiction of the 30-day month / fiction of the 360-day year

    • 30/ACT – fiction of 30 days per month / real number of days in a year 

    • Act/360 – Real Days / Fiction 360 of the day year (default value)

    • Act/Act - real number of days / real number of days in a year

• Tranche Draw Account

  • The user selects manually, it is the account of the leasing company, to which the money will be transferred as part of the drawing of the tranche

• Bank Code

  • the user selects it manually, from the list of suppliers (banks) that were marked with the parameter Bank (Funding) = YES. It is a bank in which an account is maintained to which tranche payments are made.

  •  If the tranche is being repaid to own account, then the field will remain blank

• Payments Account Type

  • The user selects manually (values: Own account and Bank account), in conjunction with the account to which the tranche instalments are paid.

• Payments Account

  • Selects manually by the user

  •  It is a bank account to which loan tranche payments are made

    • If the Installments Account Type = Own Account, then the user selects one from the list of bank accounts to which the installments of the given tranche will be paid.

    • If the Payment Account Type = Bank Account, then the user selects one from the list of vendor bank accounts to which the payments of the given tranche will be made.

• Currency Code

  • Selects manually by the user from the currency table. It is the code of the currency in which the tranche is kept

• Tranche Outstanding

  • Tranche balance as of business date in the currency in which the tranche is maintained

  • Non-editable field, the system fills in automatically

• Tranche Outstanding (LCY)

  • Tranche Balance Converted into Local Tranche Currency

  • Current foreign currency balance converted into local currency using the current exchange rate according to the CNB's exchange rate list.

  • Non-editable field, the system fills in automatically

• Blocked Editing

  • A parameter that is entered manually by the user.

  • The blocked tranche cannot be recalculated or updated by the user or made any changes to the data, nor can it be overwritten by importing the CTC from Excel. However, reunlocking the tranche can be done. Changing the lock of the tranche is done manually by the user.

Payment Calendar Calculation

After entering the loan tranche data, the user can generate a repayment calendar using the Payment Calculation button. When pressed, it displays a message:

When the button is pressed, the payment calendar is recalculated and created, and the Tranche Balance, Tranche Balance (LCY) field on the loan tranche header displays the values related to the fields related to the work date and the Payment Cal.

Payment Calendar View

After calculating the payments, the user can view the tranche payment calendar using the Payment calendar: button.

Subsequently, the tranche payment calendar will be displayed.

Field:

• Payment No.

  • Payment sequence number, in the range 0 - 999

• From, To (From, To)

  • From – start of payment period

  • To – end of payment period

• Number of Days

  • It is a non-editable field, the value is calculated by BC according to the Do-From formula, the value depends on the Interest Calculation Method on the Loan Tranche Detail

• Principal

  • The principal value at the beginning of the period, is equal to the principal from the previous line – Principal payment from the previous line. May not apply in the case of importing SPK

  •  The value of a field is always negative

• Principal Payment

  • Principal Amount at End of Period

• Posted Principal Payment

  • When posting a payment in accounting and filling in the link to the tranche, the system overwrites the actual principal repayment amount that is specified in the general journal into this field

• Principal Difference

  • BC automatically calculates the value according to the formula Principal Payment – Posted Principal Payment from the current Bill line.

• Base Rate %

  • = Base Rate % of Credit Card. tranche

• Interest Rate % (Interest Rate %)

  • = Interest Rate % of the Loan Card. tranche

• Interest Margin %

  • = Interest Margin % of Card Loan. tranche

• Liquid Costs % (Liquid Costs %)

  • = Liquid Cost % of Card Credit. tranche

• Interest

  •  Interest Amount

• Posted Interest Payment

  • When posting a payment in accounting and filling in the link to the tranche, the system overwrites the actual amount of the interest payment that is entered from the general journal into this field.

• Interest Difference

  • BC automatically calculates the value according to the formula Interest – Posted Interest Payment from the current SPK line. Non-editable field.

• Interest Payable Amount

  • The value of the field depends on the value of the Interest Due field.

    • If the value of the Interest Payable=NO field is zero, then the value of this field is zero and the amount that should have been added here will be added to the nearest row where the value of the Interest Payable=YES field is

    • If the value of the Interest Payable=YES field is then the amount in this field

• Payment + Interest

  • BC calculates automatically as follows: Principal Payment + Interest Payable Amount

• Interest Payable

  • The value of the field determines whether interest is due on the To date on the SPK line. This flag is defined manually by the user either by changing the SPK lines or by importing the SPK from XLS.

  • The value of this field determines the value of the Interest Payable Amount field

• Locked

  • A locked row cannot be changed or deleted, nor can it be overwritten by importing SPK from Excel.

  • The Locked field will be set manually by the user

• Repricing day

  • The check mark specifies whether the line is the date of the revaluation

Export Payment Calendar to Excel

The user can export the tranche payment calendar using the Export payment calendar button from the tranche card or from the payment calendar.

After running the function, the system exports the payment calendar to MS Excel, the user can then edit it in MS Excel.

Import Payment Calendar from Excel

The user can import the tranche payment calendar using the Import payment calendar button. It is also possible to import a payment calendar from the tranche card, via Import payment calendar).

Subsequently, a standard search window opens to load the payment calendar, after selecting the appropriate MS Excel file, the payment calendar is imported into the system.

Reports

The list of reports can be displayed by the user via the Reports option:

Export tranche payment progress to Excel

The report is used to display an overview of tranches, which shows basic information about the tranche and then an overview of repayment.

The user can run this report by clicking on the report name.

Subsequently, a dialog window will be displayed to enter the input parameters of the report.

Field:

• For Date

  • Entered by the user manually or via the calendar. The system will include in the report those tranches that have been drawn up to the specified date (inclusive).

• Last Day of Month

  • The parameter is entered manually by the user. If the value of the field is YES, the system will generate a report with the principal balances of the tranches as of the last day of the calendar month.

•  Currency

  • Does the user manually select the currency in which the report should be presented

    • Local currency – All tranche amounts will be converted into local currency in the report

    • Tranche Currency – Tranche amounts will be in Tranche Currency

    • Frame currency – tranches falling under a certain frame will be in the currency of that frame

    • Entered currency – if the user chooses this option, then selects the currency in the next field to which all amounts of all tranches should be converted

• Currency Code

  •  If the user has selected the value of the Currency equal to Entered Currency field, then the user selects the currency in this field to which all amounts of all tranches should be converted

After confirmation (Preview button), the system generates a report that the user can save to Excel, Word or PDF.

Export Tranche Due Dates to Excel

The report is used to display an overview of tranches that are due in the defined period.

The user can run this report by clicking on the report name.

Subsequently, a dialog window will be displayed to enter the input parameters of the report.

Field:

• From Date

  • Entered by the user manually or via the calendar. It is used to limit the date for due tranche payments.

• To Date

  • Entered by the user manually or via the calendar. It is used to limit the date for due tranche payments.

After confirmation (Preview button), the system generates a report that the user can save to Excel, Word or PDF.

Export Interest Costs to Excel

The report is used to display an overview of tranches and their estimated interest for a defined period, or to propose these estimated interest in the general journal.

The user can run this report by clicking on the report name.

Subsequently, a dialog window will be displayed to enter the input parameters of the report.

Field:

• From Date

  • Enter manually or via calendar. The delimitation of the period for which we want to calculate the interest expense from below.

• To Date

  • Enter manually or via calendar. The delimitation of the period for which we want to calculate the interest expense from above.

• Suggest lines per.fin.day. (Suggest Recur. Gen. Jnl. Lines)

  • The user enters the appropriate option manually by selecting. Option values define what operation the report will perform, i.e. whether it will only display the report or also suggest it to the periodic journal after calculating the estimated item. Possibilities:

    • Empty

    • Conjecture interest. Cost

• The user defines the general journal, general ledger sheet and accounts in the Financing settings

After confirmation (Preview button), the system generates a report that the user can save to Excel, Word or PDF.

If the user has also selected the Accrual Interest option. costs, then checks the values in the defined general journal and batch, which the system completes according to the settings in the OneCore settings table, Funding tab. The field description to be set is in the Business Setup.

The user opens the general journal and the correct batch.

If the values are correct, then the journal is posted.

Export tranche due dates to Excel

The report is used to display an overview of frames and their tranches, for which the current status is listed.

The user can run this report by clicking on the report name.

Subsequently, a dialog window will be displayed to enter the input parameters of the report.

Field:

• From Date

  • Enter manually or via calendar. It is the date on which the system calculates the data in the report.

After confirmation (Preview button), the system will generate a report.

General Journal

The user has the option to assign the payment to the relevant tranche and payment when posting tranche payments in the general journal. After the journal is posted, the amount is written to the Tranche Payment Calendar.

The user opens the General Journal via search.

After clicking on General Journals, the user is presented with an overview of General Journal templates. Once opened, the user chooses the correct fin. Journal with the correct batch name.

The user fills in the standard fields, plus the following fields:

• Payment Type

  • The user selects from Principal or Interest, depending on which amount is charged

• Tranche No.

  • The user selects the tranche for which the amount is charged

• Payment No.

  • The user selects a payment from the selected tranche that he charges

  • Field value cannot be 0

After the line is posted, the amount is written into the Tranche Payment Calendar. If the user has selected Payment Type=Principal, then the amount will be entered into the Posted Principal Payment field and the Principal Difference will be calculated. If the user has selected Payment Type=Interest, then the amount will be entered into the Posted Interest Payment field and the Interest Difference will be calculated.