This chapter contains the following topics:
Loans for construction projects are often funded over the course of the project as costs are incurred. This partial funding of the loan is known as a draw. You perform draw processing if the company has a construction loan or line of credit with a financial institution. You use draw processing for situations when you receive disbursements of the loan money based on the eligible costs you incurred during a given period.
An eligible cost is a cost stipulated in the loan agreement. You receive disbursements for eligible costs after you incur them, up to the total amount of the loan. You can generate a draw report to show the eligible costs that you incur during a given period.
For example, suppose that you set up a job for which you identified a number of work items, such as site work, concrete, and masonry. Each work item is further divided into tasks, such as:
Clearing and grading
Sewer work
Paving and surfacing
You receive a construction loan of 25 million USD for the job, 3 million USD of which is designated for site work. Of this amount, 1 million USD is for eligible costs for each site work task. At the end of a reporting period, you perform draw processing on the eligible costs for the site work work item. The system generates a draw report that shows these eligible costs for the period:
250,000.00 USD against the clearing and grading task
95,000.00 USD against the sewer work task
55,000.00 USD against the paving and surfacing task
You submit the report to the lending institution and draw 400,000.00 USD against the loan for the period.
The process to generate the final draw report that you send you to the financial institute consists of these tasks:
Run the Draw Generation program (R51500).
Enter draw revisions.
Run the Draw Detail report (R51510).
Set up automatic accounting instructions (AAIs) to identify accounts that are eligible for draw processing.
This section provides an overview of the Draw Generation program and discusses how to:
Run the Draw Generation program (R51500).
Set processing options for Draw Generation (R51500).
You run the Draw Generation program (R51500) to generate a report of the costs that have been incurred for a job over a period of time so that you can submit them for a reimbursement (draw) against the loan that you obtained from a bank or other financial institution. You can run the Draw Generation program in either preliminary or final mode.
In preliminary mode, the system prints a report of the costs associated with the job. The system uses the processing options and data selection to retrieve information from these tables:
Account Ledger table (F0911)
The system uses the draw AAIs, which are set up in ranges, to select the transactions from this table that meet the criteria of the report and to update Draw Reporting Master table (F51911).
Draw Reporting Master table (F51911)
The system selects eligible records from this table that have not been included in a previous draw and that meet the criteria of the report. Eligible records have a blank draw date, a blank draw status, and a blank draw number.
Processing options also provide selection criteria for ledger types and transaction types. For example, you can select only those transactions that are fully paid or select both paid and unpaid transactions. The system subtotals all of the selected costs by job on the report.
If the preliminary report does not contain the correct information, you can change the draw AAIs, data selection, and processing options and rerun the program until the report shows the information that you need before you run the program in final mode and update table F51911. The system does not update any tables when you run Draw Generation in preliminary mode.
Although you should run this program in preliminary mode first, you are not required to. Although the program updates table F51911 when you run the program in final mode, the system provides a revision program that you can use to clear or modify transactions before you print the report to send to the financial institution. You still have the opportunity to work with the selected transactions, on a transaction-by-transaction basis, which can be time consuming.
When you run the program in final mode, the system uses the same criteria to select records and, additionally, it:
Updates table F51911 with transactions selected from table F0911.
Updates table F51911EX with the explanation assigned to the journal entry.
Assigns a draw number on all the selected records in F51911 based on the processing option that you select.
Assigns a draw status of 1 to the records so that the system does not include them in another draw.
Assigns a draw date that is equal to the date that you entered in the Thru Date processing option.
If you change the company or account number for an account that has existing draw transactions, you must run the Update- BU/OBJ/SUB/CO F0901>F51911 program (R51806) so that the system updates the records in table F51911 appropriately.
Processing options enable you to specify the default processing for programs and reports.
Specify whether to run the program in preliminary or final mode. Values are:
Blank: Run the program in preliminary mode. The system produces a report of the transactions that it selects. The system does not update the Draw Reporting Master table (F51911).
1: Run the program in final mode. The system produces a report of the transactions that it selects and updates the Draw Reporting Master table (F51911) with new transactions.
From Date
Specify the beginning date to use to select transactions. The system compares the date range that you enter to the general ledger date of the transaction to determine whether to include it. You cannot leave this processing blank; the system returns an error.
Thru Date
Specify the ending date to use to select transactions. The system compares the date range that you enter to the general ledger date of the transaction to determine whether to include it. You cannot leave this processing blank; the system returns an error.
Ledger Type 1 through Ledger Type 5
Specify the ledger types to use to select records. You can specify up to five ledger types.
Specify the table to use to retrieve the next draw number to assign to the transactions when you run the program in final mode. Values are:
Blank: Use the Job Cost Draw Next Number table (F51002). You specify the draw number to assign to each job. Therefore, you could assign the same draw number to multiple jobs, if desired. If you select this option and a next number record is not set up in the table for the job, the system generates a next number record and assigns it draw number 1.
1: Use the Next Numbers table (F0002). The system assigns a unique draw number to each job starting the with number that is set up for system 51, line 3.
Specify the type of transactions to include on the report. Values are:
Blank: Include all transactions based on the draw AAIs.
1: Include only fully paid transactions. The system selects only voucher records with a pay status of P. Because multiple payments can be processed for one voucher, the system uses the gross amount of the voucher as the draw amount, not the payment amount.
This section provides an overview of the Draw Revisions program (P515003) and discusses how to:
Set processing options for Draw Revisions (P515003).
Set processing option for Draw Status Update (P515001).
Revise draw transactions.
Because the system selects transactions based on the draw AAI ranges that you set up, it might include additional transactions that you do not want when you run the Draw Generation program in final mode. You can use the Draw Revisions program (P515003) to review the transactions by job for a particular draw number, as well as to revise information, such as:
Draw number.
Draw amount.
Draw status.
Draw date.
Description that prints on the report.
You cannot change the account information, general ledger date, or original amount.
Using Draw Revisions, you can also:
Manually add a transaction to the draw table.
Add a transaction using the information from table F0911. If the transaction is not in table F0911, you must add it using the system-assigned document number and document type.
Delete a transaction.
The system removes the record from tables F51911 and F51911EX only. The system does not alter the F0911 record.
Split a transaction into multiple detail lines, which you can later assign to a different draw.
Review the original source of the transaction.
If you select Original Source from the Row menu, the system displays the batch review program for the associated batch type, which you can use to review transaction details.
Although you can revise the draw amount for a transaction, you might want to schedule different transaction amounts for future draws. Rather than trying to track the amount and date of the transaction to include in future draws, you can split the transaction and assign the future draw amounts and dates.
To split the transaction into multiple draws, you select Draw Split from the Row menu. The system displays the Split Draw Entry form, on which you can enter the amount and explanation for each detail line. You can split the transaction into as many detail lines as you want, but the amount that you assign to each detail line must total the draw amount of the transaction. When you click OK, the system returns you to the Draw Revisions form, where you must inquire again to see the new draw detail lines.
When you split a draw transaction, the system creates new draw records and assigns them the same document details as the original transaction, with the exception of the document type. Because these new records exist only in the draw tables, the system automatically assigns them a document type of DR to differentiate them from F0911 transactions. The new draw detail lines retain the general ledger date, draw number, draw status, and draw date from the original transaction. After you split a draw, you can revise the draw date and draw status on the new detail lines so that you can include them in future draws.
For example, suppose you want to split JE 1234, which has a draw amount of 1,200, into four detail lines with equal amounts. The system would generate these records:
| Document Type | Document Number | JE Line Number | Draw Amount | Result |
|---|---|---|---|---|
| JE | 1234 | 1.0 | 300 | The system changes the draw amount of the original transaction from 1,200 to 300. |
| DR | 1234 | 2.0 | 300 | The system generates this record. |
| DR | 1234 | 3.0 | 300 | The system generates this record. |
| DR | 1234 | 4.0 | 300 | The system generates this record. |
You can change the draw status on an individual transaction or for all the of the transactions for the job that are assigned the same draw number. The draw status that you assign must be set up in user-defined code (UDC) table 51/DR. The system provides these statuses for you:
Blank: Clear the draw status when you want to exclude the draw transaction from the draw report. The system clears the Draw Number and Draw Date fields when you assign this value. To reassign the transaction to another draw, complete the draw number and date, and change the status to a value other than blank.
1: The system automatically assigns this value when you run the Draw Generation program. Assign this status when you want to include the transaction on the draw report.
H: Assign this status to hold the transaction for a future draw. The system does not include the transaction on the draw report for the draw number specified; however, the system retains the values in the Draw Number and Draw Date fields.
N: Assign this status to indicate that the transaction is not fully paid. The system includes the transaction on the draw report.
X: Assign this status to exclude the transaction from the draw report. You can assign this value to indicate that you never intend to include the transaction in a draw. The system retains the values in the Draw Number and Draw Date fields for audit purposes.
If necessary, you can set up additional statuses in UDC 51/DR. The system includes transactions for additional statuses on the draw detail report.
You use the Draw Revisions form to change the draw status of an individual transaction. To change the status on all of the transactions for the draw and job number, select Draw Status from the Row menu on the Work With Draws form. The system displays Draw Status Update form, on which you can enter a new draw status. Additionally, you must select the Update check box. If you are updating the status from blank to another value, you must also complete the New Draw Number and New Draw Date fields.
Processing options enable you to specify the default processing for programs and reports.
Specify the document type to assign to transactions that you manually add to the Draw Reporting Master table (F51911). If you leave this processing option blank, the system assigns JE.
Processing options enable you to specify the default processing for programs and reports.
Specify the version of the Draw Revisions program to use when you select the program from the Row menu. If you leave this processing option blank, the system uses version ZJDE0001.
Access the Draw Revisions form.
Enter the draw number to use to display records from table F51911. Using a wildcard value (*) is not valid.
|
Note: Because you can manually clear records from the draw by clearing the draw number, blank is a value. |
Enter the draw status to use to display records from table F51911, or enter the new draw status to assign to records already displayed. The system automatically assigns a value of 1 to this field when you run the Draw Generation program. You can revise the status, as necessary, to manage the transactions or to exclude them from printing on the draw report that you send to the financial institute. Values are:
Blank: Do not include the transaction on the draw report. If you change the draw status from a value to blank, the system additionally clears the Draw Number and Draw Date fields.
1: Include the transaction on the draw report.
H: Hold the transaction for a future draw. The system does not include the transaction on the draw report for the draw number specified; however, the system retains the values in the Draw Number and Draw Date fields.
N: Include the transaction on the draw report. You can assign this value to indicate that the transaction is not fully paid.
X: Exclude the transaction from the draw report. You can assign this value to indicate that you never intend to include the transaction in a draw. The system retains the values in the Draw Number and Draw Date fields for audit purposes.
Specify the date that was entered in the Thru Date processing option of the Draw Generation program.
Specify the date the transaction was posted to the general ledger. You cannot revise the general ledger date.
Enter the original transaction amount before any draws were processed.
This section provides an overview of the Draw Detail Report (R51510) and discusses how to:
Print the Draw Detail report (R51510).
Set processing options for the Draw Detail report (R51510).
After you assign the transactions for which you require reimbursement to a specific draw number, you can generate the Draw Detail report (R51510) to send to the financial institute. The Draw Detail report provides information about each transaction, including account information, general ledger date, document number and type, and draw amount.
You use processing options to specify the draw number to use to select the records to print. The system does not include records that do not have a draw number or for which the draw status is blank.
The system also provides these additional reports that you can print:
Cost of Construction: Detail (R51520).
Cost of Construction: Summary (R51525).
Select Job Draws and Reporting (G5123), Draw Detail Report.
Processing options enable you to specify the default processing for programs and reports.
Specify the draw number to use to select the records to print on the report.
Specify whether to include an additional column on the report to print the original amount from the Account Detail table (F0911). Values are:
Blank: Do not include an additional column; the system prints the draw amount only from table F51911.
1: Include an additional column to print the original amount from table F0911.