For accounts that are Funding Option surpluses or deficits, the input values forecast the maximum account output. For accounts that are not in Funding Options, the input values forecast the actual output values. For example, to repay early a term loan of $100 and there is sufficient cash, enter $100 for that account. After calculating, the output is between 0 and $100, depending on the available cash. If the term loan should not be paid early, input $100 and the output is $100.
Funding Option accounts have main accounts and maximum accounts: for example, Marketable Securities has the main account v2010.00.000 and the maximum account v2010.07.000. Maximum account output calculates based on the main account value:
If main accounts have surplus/deficit settings, maximum account outputs calculate using main account inputs.
If main accounts do not have surplus/deficit settings, maximum account outputs calculate using main account outputs.
The basic roll-up process backsolves output values from business units to calculate the consolidated input. Funding Options accounts backsolve differently:
If main accounts have surplus/deficit settings in the consolidated parent, Consolidator adds all business unit maximum account outputs, backsolves the main account input, and determines the main account output using the rest of the data.
If main accounts do not have surplus/deficit settings, Consolidator adds all business unit main account outputs and backsolves the main account input. The rest of the data is irrelevant.
In business unit A, Marketable Securities (v2010) has a surplus/deficit setting. There is not enough cash to use the maximum. In business unit B, Marketable Securities (v2010) does not have a surplus/deficit setting. Business unit B runs a large cash surplus. The table shows the consolidated results if Marketable Securities (v2010) has a surplus/deficit setting in the consolidated parent (SD) and if it does not (No SD).
(A) This could be up to 300, depending on the consolidated cash position.
(B) This is determined by the input of v2010.00, so the maximum on these facts is not additive.
Debt accounts act like asset accounts: If the item is a term loan, the surplus/deficit setting matters.
If the item is a revolver, its accounts roll-up like assets with surplus/deficit settings, regardless of whether the revolver has a surplus/deficit setting.
If the term loan has a surplus/deficit setting, it rolls up like a revolver.
If the term loan does not have a surplus/deficit setting, it rolls up like assets with no surplus/deficit settings.