Setting up Funding Facilities
Follow these steps for the meticulous setup of all facilities within each funding option:
Facility Definition and Operation
•Create Facilities: Set up all relevant facilities, including those for equity and residual equity.
•Define Job Linkages:
o Specify which jobs each facility is funding.
o Indicate the "prime job" for the facility.
o Determine where the facility will derive revenue and/or costs from the job.
•Strategic Consideration: Carefully plan how each facility is intended to operate and be utilized within the system.
Rule Configuration and Cost Allocation
•Define Rules: Set up essential rules for:
o Interest calculations.
o Cost centres to be funded.
o Finance costs.
o Repayment schedules.
•Point to Cost Centres: Link the facility to specific interest and finance cost centres. This ensures the system can correctly insert forecast figures for these costs when viewing the "forecast to complete."
Inter-Company Note and Ranking
•Inter-Company Relationships (Hint): If a facility is funding a project in another company, or drawdowns are placed into a different company, ensure all inter-company relationships are configured before entering any drawdowns.
•Ranking: Once all facilities and rules are set up, rank them for the priority of cost allocation and repayments.