Hi all
We have some finance costs such as overdraft line fees which should not be in our operating overheads, should be excluded from our EBITDA figure, but included in our interest expense as they relate to our capital funding strucutre.
The only way in a standard model I can see for expenses to go into the interest expense area on the P&L is via the debt modules, and the % interest rate payable on the debt balance for that period.
Is there another module related to debt / interest to add in a time based assumption for this ongoing line fee, into the interest expense area?
Or will this require customisation?
Thanks
James
Hi James,
I haven't had a proper play around with it yet, but I'm pretty sure you can try and use Chart of Account 7 dynamic templates.
There's some pretty detailed debt funding content in there allowing for base, margins and fees. It also has the ability to capitalise and amortise various funding costs.
There's also the option for better reflecting on the balance sheet between short and long time debt.
Have a play around with that, otherwise yes, what you're asking for is likely to need customisation.
Jun
Hi James,
Jun - you are correct. The new chart of accounts 7 dynamic templates split out debt financing fees and capitalized financing costs throughout the financial statements, as this chart of accounts is designed to facilitate more advanced capital structures.
James - it's not particularly hard to build this into an existing model which was built using another chart of accounts, but it will require the customization of your financial statements modules, ideally starting with your historical financial statements (or opening balance sheet if it's a forecast-only model) and then moving right through the all periods financial statements.
This is something we help our users do all the time - which is why we're including it in new charts of accounts - so it wouldn't require the purchase of many support credits if you'd like one of our team to put this through your model for you.
M.