Using the Standard Funding Method

The Standard funding method applies cash surpluses and funds cash deficits for your funding accounts regardless of funding category (debt, preferred equity, or common equity)—providing a unified funding priority plan across all funding account categories. You identify additional funding account characteristics, and the funding of deficits or receiving cash surpluses.

Use the Funding Analysis Report, a summary of the study's capital structure, to review the results of your funding strategy.

  To enter standard funding information:

  1. Access Funding Options.

    See Accessing Funding Options.

    Ensure that Common information exists and Standard is selected in the Funding Method to Use field. See Using the Standard Funding Method.

  2. Select Standard.

  3. Under Surplus select accounts providing cash, and under Deficit, select accounts receiving cash.

    Note:

    Some account settings may not be changed. For example, Excess Marketable Securities funds cash deficits to balance the forecast periods.

    Apply Surplus in Category to... and Fund Deficit in Category with... display the order in which these accounts are processed. See Order of Repayment and Funding.

  4. Optional: Click and drag on the account names to reorder.

  5. Click OK.