Debt Scheduler Considerations

Debt Scheduler Calculation in Leaf Periods

If you enter data for Input Aggregate periods (in the Time Periods dialog box), note that for the following accounts, you must enter values at the leaf level (for example weeks or months depending on your time period setup) rather than aggregate periods:

.06: Minimum Balance
.17: Recapture Pool
.35: Non-cash Adjustments
.55: Cash Interest Rate
.65: PIK Interest Rate

Currency Translation Adjustments in the Debt Scheduler

Because the Debt Scheduler always works with debt instruments in the native currency of the model, the value of all of the associated currency translation adjustments should be zero during the term of the debt in scenarios that are not translated. Those accounts are now forced to be zero by the Debt Scheduler calculation:

.04: Currency translation revaluation for the debt balance
.54: Currency translation adjustment for accrued interest
.64: Currency translation adjustment for PIK accrued interest
.74: Currency translation adjustment for issue costs
.84: Currency translation adjustment for discount / premium at issuance

Debt Scheduler and the Deal Period

Because a Deal Period is a zero-length period that occurs at the end of a day, it has the same ending day number as the Closing period that immediately precedes the Deal Period in the model.

In general, the payment of interest and repayment of principal never occurs during a Deal Period, but occurs during the preceding Closing period if it's within the term of the debt instrument. However, if the Issue Day of the debt instrument is the same day as the Deal Period, then Debt Scheduler evaluates whether Acquisition Related Debt on the Term page is selected for the debt instrument. If it's selected, then the debt is issued during the Deal Period; otherwise, it is issued during the Closing period.

Tip:

You can create subperiods if needed so that the Deal and the debt issuance occur on the correct date.

The Debt Scheduler and Scenario Inheritance

Like an account, a Debt Schedule is an item that belongs to a scenario and whose values can be inherited by other scenarios in the model. Unlike an account, this information is managed from the Debt Scheduler dialog boxes, which allow you to add or delete a Debt Schedule from the currently active scenario.

Creating a debt schedule in an inheriting scenario.
When creating a Debt Schedule in an inheriting scenario, if there is a Debt Schedule that is currently inherited by that scenario, then the initial values in the Debt Schedule are copied from the Debt Schedule that is being inherited from.
Inheritance of debt schedule values.
By default, a Debt Schedule inherits nothing from the Debt Schedule that it is set up to inherit from. To inherit selected values from that Debt Schedule, use the Inheritance tab in Debt Scheduler and select the item that you want to inherit. For example, if you want your inheriting instrument to have the same term as the original instrument, select the Term option on the Inheritance tab for the inheriting Debt Schedule.

For values that are entered for the Debt Schedule through the accounts on the Account View, add the matching accounts to your scenario using the Scenario Manager if you want to use a different value in the inheriting scenario.

Debt Scheduler and Currency Translation

Translated scenarios do not allow Debt Schedules. They can hold the translated results from a scenario that has a Debt Schedule, but the translated scenarios only hold translated values, so the presence or absence of a Debt Schedule is immaterial to the currency translator.

Debt Scheduler and Scenario Rollup

Debt Schedules in the Child Model.
When rolling values from the child to the parent, we take the values from the child that are stored in the accounts whether those were generated by a Debt Schedule calculation or whether they were calculated in other ways. Thus, the presence of a Debt Schedule in the child model is immaterial to the scenario rollup.
Debt Schedules in the Parent Model.
One of the common use cases in Scenario Rollup is to provide financing at the parent level, which is a great place to use the Debt Scheduler to provide specific debt items for financing. To do this, attach a Debt Schedule (and any related accounts that are entered on the Account View) to an Input Only scenario. Enter the data for the debt instrument into that Debt Schedule, and then specify that the Input Only scenario is a contributing scenario for one or more Business Cases that you're rolling up.

Note that you cannot add a Debt Schedule to a Business Case scenario directly. This is by design.