Using Debt Covenant Accounts

In Strategic Finance, you can establish measures testing an entity's ability to meet performance standards. Use user-defined Debt Covenant accounts to enter your debt covenant requirements for testing entities.

There are 5 Debt Covenant accounts (v6500, v6505, v6510, v6515 and v6520). Each of these accounts can have up to 999 subaccounts to accommodate all the covenants in your analysis.

To accommodate the required inputs and outputs for covenant tests each Debt Covenant account has two related accounts, giving you a total of three related accounts:

  • Test (.00): An account to accommodate the covenant test parameter.

  • Actual (.01): An account to accommodate the actual performance equation.

  • Result (.02): An account to accommodate the difference between the test parameter and the actual performance equation.

When you subaccount Debt Covenant accounts, all related accounts also receive subaccounts, enabling you to automatically create additional Debt Covenant Test Parameter accounts, actual performance equation accounts, and result accounts.

Debt Covenant accounts are accessible from the User Defined Accounts dialog, so that the output type and units can be selected (e.g., currency in millions). Debt Covenant accounts are displayed on the bottom of the Funding Analysis Report. You can insert the Debt Covenant accounts on reports by using the Edit, Insert command.