Funding Enhancements Delta 3 (Doc ID 2229199.1)

Last updated on SEPTEMBER 27, 2021

Applies to:

Purpose

This note describes the new enhanced features on the existing Funding process. The current funding process allows the user to create funding request for the pre funding, asset funding and expense funding. There was limitation in the funding process like the lessor cannot make stage wise payment to a vendor for the asset preparation which is intended to use. Likewise other features are also addressed in this release.

This release note describes the follow enhancements:

• Pre-funding Pools
• Progress Payments

A pre funding pool is a fund reservoir created as an arrangement between the Lessor and Vendor to provide the advance monies to specific vendors listed upon in the system in anticipation of some future deal.
A progress payment is a type of pre funding with specific reference to an asset. The release of fund is towards the progress made on the assets intended to use.

Pre-funding pool feature provides users with the following

• Ability to create a prefunding pool with a pool limit with an approval process
• Ability to increase the pool limit by using “ add” transaction and reduce the balance by deduction
• Ability to Apply contract funding and other disbursements to a pool to reduce the balance
• Ability to terminate the pool with approval.
• Ability to generate a receivable invoice for a terminated pool with an open balance.
• To generate the billing for the approved pool adjustment request.
• New accounting event for the pool related transactions and allied funding.

The purpose of progress payments is to enable users with the following:

• Ability to fund the vendors on a contract before the contract is booked with reference to a particular asset on the contract.
• Ability to capture terms for interim interest as the Lessor can charge interest on the amount progress finance to vendor.
• Enable to associate the asset to the Prefunding request
• Ability to bill to vendor or capitalize the Interest and accrue the interest

Scope

 Business Background

In an effort to increase sales, facilitate arrangements with suppliers, vendors or brokers with whom the lessor partners to create new financing transactions and help manage their cash flow, lessors may enter into special financing arrangements. These arrangements often involve the creation or designation of pools of funds to be reserved for a specific purpose and to vendors and suppliers in advance, stage-wise or progressive payment to vendors as when required with reference to asset even before the contract booking and allow the lessor to short fund the vendor by adjusting the dues which vendor owes to lessor on a different business transactions.

Details

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