Debt calculation

Different Due Dates affect the Cashflow statement. Multiply Due Dates can be defined for Capex, Transaction Expenditures and Construction Loans. On these Due Dates there is a cash drain or a cash inflow.

When Capex expenditures with an amount of for example EUR 10'000'000 are necessary, these costs can be distributed on different Due Dates. The following table shows the defined Due Dates:

At Transaction 60% of Capex are due, 24 months later 25% and 36 months after Transaction the remaining 15%.

Linear Redemption

Debt Tranches and Shareholder Loans have to be redeemed. Therefor a Redemption Frequency and a Redemption Free Period is defined. When the Redemption Free Period expires the Debt/Shareholder Loan is redeemed during the Loan Period in regular intervals according to the Redemption Frequency.

When Debt with an amount of EUR 2'000'000, a Loan Period of 10 years, 24 months Redemption Free Period and a Redemption Frequency of 3 months is issued in 12 / 2015, the following Cashflow statement yields from this Debt and the connected Redemptions:

The Redemption occurs within 8 years respective 96 months. Thus a monthly Redemption of EUR 20'883 is necessary. Based on the quarterly Redemptions, an amount of EUR 62'500 has to be redeemed every third month.

Annuity Redemption

When the debt is redeemed per annuity, the annual sum of Redemption amounts and Interest payments build a constant value. The Interest expense decline from year to year because the debt is getting less too. Therefore the Redemption amount has to increase to get an annuity Redemption.

The Annuity amount can be calculated with the following formula:

When Debt with an amount of EUR 2'000'000, a Loan Period of 10 years, 24 months Redemption Free Period and a Redemption Frequency of 3 months is issued in 12 / 2015, an annuity redemption amount of annually EUR 304'86 or quarterly EUR 76'216 yields.

Bullet Redemption

When Bullet Redemption is selected as Redemption Mode the whole loan is redeemed at the end of the loan period.

When Debt with an amount of EUR 2'000'000 and a Loan Period of 10 years is issued in 12 / 2015, the whole amount of EUR 2'000'000 is redeemed in 12 / 2025.

Method of Payment (Account = Account Payable)

With the help of Methods of Payment dates/events can be defined for the first invoicing. From this date/event on the expenses/earnings get payed in regular intervals. With an expense of for example EUR 24'000 per year, the first invoicing in 03 / 2016 and a Payment Frequency of 3 months, the EUR 24'000 will be divided in 12/3 = 4 payments of the same size.

Payment Date (Account = Pre Payment)

When Pre Payment is selected as account, a date has to be set with the help of a Date Choice Box. On this date the expense of the whole Project Lifetime is payed. With an expense of EUR 18'000 per year and a Project Lifetime of 20 years, the capital drain on the defined date, in this case 01 / 2016, is EUR 18'000 x 20 years = EUR 360'000. When the defined date is before Transaction, the capital drain will occur at Transaction.

Payment Date (Account = Provision)

When Provision is selected as account, a date has to be set with the help of a Date Choice Box. On this date the expense of the whole Project Lifetime is payed. With a expense of EUR 18'000 per year and a Project Lifetime of 20 years, the capital drain on the defined date, in this case 12 / 2036, is EUR 18'000 x 20 years = EUR 360'000.

The Balance Sheet gets calculated from the closing Balance Sheet of the previous period and from the difference between the Profit & Loss statement and the Cashflow statement of the actual period.

Balance Sheet(t) = Balance Sheet(t - 1) + Profit & Loss statement(t) - Cashflow statement(t)

The following example explains this functionality:

For 06 / 2016 the book value is calculated as follows:

Balance Sheet(06.2016) = 8 + 4 - 12 = 0