Funding

FUNDING

1. PURPOSE

The module has a set of functions for “sale of receivables” process management. This solution allows for multiple funders/trusts:
• Manage Funder’s master records.
• Sell/un-sell batches, with the sales price calculation based on the current value of the receivable.
• Funder collection’s function, to remit payments collected from customers.
• Segregate G/L balances per Funder.

2. SETUP

• On Leasing Setup page input Funding Batch Nos.

• On Source Code Setup page input Funding - Sell of Receiv. and Funding - Un-sell Receiv.

• On Leasing Posting Setup page input Funding Off Set Acc and Funding Revenue.

3. Funder creation

To create Funder record, navigate to Funders page and click New.

Code – Funder code
Name – Funder name
Funder Rate – default funder rate to be used to calculate price of sell of receivable.
Receivables (Cust No.) – Customer No. for account receivables.
Receivables (Vend No.) – Customer No. for account payable.

4. Sell of receivable

Assign Funder on Active Contract you want to sell to Funder.

Navigate to Funding Batches and click New.

Posting Date – date will be used on G/L transactions.
Type – Sell to Funder or Un-sell from Funder.
Funder – Funder No.

Click action Suggest Contracts to create Funding Batch Lines.

Contract No. – contract number.
Contract Name – customer name on contract.
Original Term – contract term.
Term Sold – term to be sold to Funder.
Number of Installments – number of instalments on contract
Installments Past – installments already invoiced.
Customer Rate – customer APR on contract.
Residual Value – future value
Installment Amount excl. VAT - Installment Amount excl. on contract
Net Receivable – principal amount as of posting date.
Funder Rate – funder rate from funder record, user can override.
Funder Purchase Price Override – if enable user can input Total Purchase Price.
Total Purchase Price - funder purchase price, user can override.

Click action Post to sell contracts. Action Post will produce G/L transactions – remove receivable from contract, create A/R from Funder and recognize Funding revenue.

5. Invoicing, Account Receivables and Account Payables

Run Invoicing Run to create and post sales invoice for customer. Together with customer sale invoice Funder payables are created in the system:

Collect payment from customer and make a payment to funder.

6. Early Termination

Navigate to Contract Card and open Pay-Out Card.

Funder Rate % - rate contract was to Funder.
Funder Pay-Out Figure Override – if enabled allows to override Funder Pay-Out Figure.
Funder Pay-Out Figure – amount you must pay to Funder to close the Contract.
Funding Off Set – G/L Account balance as of pay out date.
Click action Confirm to freeze Pay-Out Quote. Collect final payment from customer. Run action Run Contract Expiration on Contract Card to create and post final invoice to Customer.

7. Un-sell receivable

Navigate to Funding Batches, click New to create new batch with type Un-sell from Funder.
Manually select Contract No. you want to unsell from Funder on Funding Line. Enable flag Funder Purchase Price Override and input Total Purchase Price. Click action Post.

Post procedure created G/L transactions in the system, Funding Off Set account was cleared, payable to Funder payable created and Funding revenue adjusted.