Order of Repayment and Funding
In the Funding Options dialog box, you can reorder accounts in Apply Cash Surplus to and Fund Cash Deficit with to specify the order of account use, in the event of cash surpluses or deficits.
Order | Apply Cash Surplus to | Order | Fund Cash Deficits with |
---|---|---|---|
First |
L-T Debt: Excess |
First |
Excess Marketable Securities |
Next |
Other Selected Surplus Accounts |
Next |
Other Selected Deficit Accounts |
Last |
Excess Marketable Securities |
Last |
L-T Debt: Excess |
With a cash surplus, by default, Long-Term Debt: Excess is reduced first if a balance exists. Funds remaining, after reducing other surplus accounts selected, accumulate in Excess Marketable Securities. With a cash deficit, by default, Excess Marketable Securities is used as funding first. If there is still cash deficit after other selected funding accounts are used up to their forecasted limits, Long-Term Debt: Excess funds the remaining cash deficit in its entirety.
Note:
Excess Marketable Securities is last in the Apply Cash Surplus to order and by default is first in the Fund Cash Deficit with order. Long-Term Debt: Excess is by default first in the Apply Cash Surplus to order and last in the Fund Cash Deficits with order.