Modifying sources and uses

Overview

This article explains how to manage sources and uses in a draw by entering draw request amounts, applying current adjustments, and adding new funding sources. These tools ensure that draws remain accurate, balanced, and aligned with lender funding rules, while giving borrowers flexibility in how they allocate and report project funding. The system also offers features like auto-balancing and validation prompts to streamline the submission process.

Entering draw request amounts

Description

Learn how to enter requested amounts for each line item and funding source, including stored materials and retainage, and balance the draw using built-in validation tools.

Steps

1. Create a Draw.

2. On the Draw page, click Sources and Uses.

3. To Edit the draw request amounts, click Edit.

4. In the Uses section, in the Current Draw Request column, enter the amount that you want to request.

   1. Enter additional values in Current Adjustments, Stored Materials and Retainage, if applicable.

      1. Note: Draw Request Amounts include Retainage

5. In the Sources section, in the Funding Amount column, enter the amount that you want funded.

   1. Alternatively in the top right, click Unbalanced to see the variance between Draw and Funding Amounts. 

   2. Select Auto-Balance Draw, to apply the lender’s funding source rules.

6. Click Save once Sources and Uses are balanced.

   1. A message is displayed indicating that the draw amount is updated successfully.

Updating current adjustments

Description

Modify draw figures by entering one-time adjustments to either sources or uses for more accurate budgeting.

Steps

1. On the Draw page, click Sources and Uses.

2. To Edit the current adjustment amounts, click Edit.

3. In the Current Adjustment column enter the adjustment amount to modify either Sources or Uses.

4. Click Save.

   1. A message is displayed indicating that the draw amounts are successfully updated.

Updating Retainage

• The Funding Amount will include retainage.

• The Funding Amount will be reduced if retainage is being added, or increased if retainage is being released.

  • Retainage is added by entering a positive value in the Retainage this Draw column.

  • Retainage is released by entering a negative value in the Retainage this Draw column.

• The Retainage this Draw will be designated per line item, or pre-populated when uploading the draw package.

Adding new sources

Description

Add new funding sources, such as debt or equity, and configure their classification, type, and impact on deal budget balancing.

Steps

1. On the Draw page, click Sources and Uses.

2. To Edit the current adjustment amounts, click Edit.

3. To add an additional Funding Source, click + New Source(s) and enter the following information:

   1. Classification

   2. Type

   3. Name

   4. Amount

   5. Select whether or not to exclude from deal budget balancing.

4. Click Save.