--- title: "Capital Management - Transactions & Balance Impacts" slug: "capital-management-transactions-balance-impacts" updated: 2026-05-05T17:12:52Z published: 2026-05-05T17:12:52Z canonical: "help.getbuilt.com/capital-management-transactions-balance-impacts" --- > ## Documentation Index > Fetch the complete documentation index at: https://help.getbuilt.com/llms.txt > Use this file to discover all available pages before exploring further. # Capital Management - Transactions & Balance Impacts ### **Purpose** Capital Management helps you track fund-level transactions — including funding requests, repayments, interest, and fees — while simultaneously allocating those transactions across Deals via Pledges. --- ### **Key Features** 1. **Transaction Creation**: Record facility or equity activity and allocate it across pledges using the Transactions workflow. 2. **Funding Request**: A principal-impacting transaction that records a draw of capital from a Capital Source. When transferred, it increases the Capital Source Balance by the Transaction Amount. 3. **Repayment**: A principal-impacting transaction that records a return of capital to a Capital Source. When transferred, it decreases the Capital Source Balance by the Transaction Amount. 4. **Interest Payment**: An interest-impacting transaction that records the payment of accrued interest owed to a Capital Provider. When transferred, it does not affect the Capital Source Balance or Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only. 5. **Fee**: A fee-impacting transaction that records a fee or charge paid to a Capital Provider. When transferred, it does not affect the Capital Source Balance or Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only. --- ### **How It Works** #### Creating Capital Source Transactions Use transactions to record facility or equity activity and allocate it across pledges. Step-by-Step Instructions: 1. Go to **Portfolio** > **Capital Management** > **Transactions**. ![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(724).png?sv=2026-02-06&spr=https&st=2026-10-17T14%3A50%3A51Z&se=2026-10-17T15%3A50%3A51Z&sr=c&sp=r&sig=k4XH711cj9dIs%2F4iefAI2ar7CPFEmOy%2FkUqCxW%2BGshU%3D) 2. Select **Create transaction**. 3. Note that **Status** defaults to **Pending**. Transactions will not update balances until status is **Transferred**. ![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(725).png?sv=2026-02-06&spr=https&st=2026-10-17T14%3A50%3A51Z&se=2026-10-17T15%3A50%3A51Z&sr=c&sp=r&sig=k4XH711cj9dIs%2F4iefAI2ar7CPFEmOy%2FkUqCxW%2BGshU%3D) 4. Select a **Fund**. 5. Select a **Capital Source**. 6. Select a **Transaction Type**. 7. Select an **Effective Date**. Use Effective Date to record when a transaction is effective — past, present, or future. 8. Enter the **Transaction Amount**. 9. In **Pledge Balance**, select one or more pledges. ![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(726).png?sv=2026-02-06&spr=https&st=2026-10-17T14%3A50%3A51Z&se=2026-10-17T15%3A50%3A51Z&sr=c&sp=r&sig=k4XH711cj9dIs%2F4iefAI2ar7CPFEmOy%2FkUqCxW%2BGshU%3D) 10. Enter the amount of the transaction that will be allocated to each pledge's balance. 11. Select **Save**. | **Transaction Type** | **Definition** | | --- | --- | | Funding Request | A Funding Request is a principal-impacting Transaction that records a draw of capital from a Capital Source. When a Funding Request is posted and Transferred, it increases the Capital Source Balance by the Transaction Amount. | | Repayment | A Repayment is a principal-impacting Transaction that records a return of capital to a Capital Source. When a Repayment is posted and Transferred, it decreases the Capital Source Balance by the Transaction Amount. | | Interest Payment | An Interest Payment is an interest-impacting Transaction that records the payment of accrued interest owed to a Capital Provider on a Capital Source. When an Interest Payment is posted and Transferred, it does not affect the Capital Source Balance or any Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only. | | Fee | A Fee is a fee-impacting Transaction that records a fee or charge paid to a Capital Provider on a Capital Source. When a Fee is Transferred, it does not affect the Capital Source Balance or any Pledge Allocations — it is recorded for tracking, reporting, and fund-level cost accounting purposes only. | --- #### Impact to Pledge Calculations by a Funding Request or Repayment Use Capital Management to review pledges tied to a facility or equity capital source. Step-by-Step Instructions: 1. Go to **Portfolio** > **Capital Management** > **Pledges**. ![](https://cdn.document360.io/b8e7a68c-6af4-4b6e-8d8d-23371810eaa1/Images/Documentation/image(727).png?sv=2026-02-06&spr=https&st=2026-10-17T14%3A50%3A51Z&se=2026-10-17T15%3A50%3A51Z&sr=c&sp=r&sig=k4XH711cj9dIs%2F4iefAI2ar7CPFEmOy%2FkUqCxW%2BGshU%3D) 2. In the dropdown, select the capital source that the transaction was posted against. 3. After a Funding Request or Repayment transaction, the following field calculations will be updated: available, pledge balance, dry powder, and current advance rate. | **Field Name** | **Definition** | | --- | --- | | Pledge | Combination of the Deal Name and Funding Source associated to the Pledge. | | Outstanding Balance | Principal Balance of the Fund Allocation for Debt / Funded to Date of the Fund Allocation for Equity. | | Pledge Advance Rate | The % multiplier that is expected to be advanced by the Capital Source. | | Available | Pledge Advance Rate × Current Balance = Available. The amount available to be advanced from the Capital Source, based on what has been funded and repaid on the associated Funding Source. | | Pledge Balance | The current amount advanced by a Capital Source's investment in a Funding Source. This represents the true balance on any given day of an investment. This balance is managed from the Capital Management page. | | Dry Powder | Available − Pledge Balance = Dry Powder. Dollars that can be allocated from the Capital Source. | | Current Advance Rate | Pledge Balance / Outstanding Balance = Current Advance Rate. The calculated rate at which dollars have been advanced from the financing partner. This figure is provided as a means to compare against the Pledge Advance Rate and understand what is "Available". | --- ### **Best Practices** > [!NOTE] > Note: > > - Transactions will not update balances until the status is changed to **Transferred**. Transactions default to **Pending** status when created. > - Interest Payment and Fee transactions do not affect the Capital Source Balance or Pledge Allocations — they are recorded for tracking, reporting, and fund-level cost accounting purposes only.