Adding draw disbursements

Draw disbursements allow users to specify disbursements and show moving money to fund destinations in the draw workflow.

Note: Ensure that:

• The user has access to Draw Management and a deal is created. To create a deal, see Creating a new deal.

• The funds destinations are created for the Deal stakeholders.

To add draw disbursements, perform the following steps.

1.

On the Portfolio page, click Deal ID or View for the deal you want to update.

2.

On the left navigation menu, click Draw Management.

3.

On the Draws page, click Edit for the required draw.

Note: The draw must have a Draw Schedule. To create a draw, see Creating a draw and to create a draw schedule, see Creating a draw schedule.

4.

On the Draws page, click Disbursements.

5.

Click + New Disbursement.

6.

On the Disbursements tab, enter the required information.

Note: If a required field is missing, it will be highlighted in red.

Field	Description
Transaction Type	The required transaction type such as Direct Payment, Draw, Fee, or Interest Reverse Payment. This field is mandatory.
Funds Destination	The fund destinations, such as bank accounts or financial institutions.
Payment Methods	A payment method linked to the fund destination.
Notes (External)	The external notes.
Memo (Internal)	The internal memo.
Amount	The required amount to be sent to that destination. This field is mandatory. Note: This amount must be less than or equal to the total draw amount.

When you enter the amount, the remaining balance is updated automatically. The remaining balance is the difference between the Draw Total and the sum of the disbursement amounts. The Disbursement card at the top of the page is updated to reflect the total disbursement amount.

Note: 

• Ensure to select the Transaction Type and enter the disbursement Amount prior to clicking Save.

• If you enter a negative amount, the Amount field is highlighted in red.

7.

At the top-right of the page, on the Draw page, hover over the status drop-down.

A tool tip is displayed indicating that you must balance the draw before changing the statuses.

8.

Click Edit to add new transactions in Disbursements.

9.

On the Disbursements tab, click + New Transaction.

10.

Continue adding disbursement(s) until the Remaining balance is $0. The total sum of Disbursements must be equal to Draw amount.

11.

Click Save.

A message is displayed indicating that the disbursement transactions are updated successfully.

Note: Before updating the status of a draw, ensure there are no other outstanding draw requirements, or rule not met. To update the status of a rule, see Dispositioning the status of rules on a draw.

12.

To update the status, in the draw status drop-down, select the next status of the workflow.

For example, if the current status is "Approved", select the next status as "Transferred".

All the transferred draw transactions are displayed on the Transactions page.

13.

To view all transactions, on the left navigation menu, click Transactions.