Create Commitments

A fund commitment is a pledge or promise by an investor to contribute a certain amount of money to a fund over a specified period of time. The commitment may be made by an individual, institution, or corporation, and it is typically made prior to the fund’s initial closing. The commitment is not an actual investment, but rather a promise to make an investment in the future when the fund makes a capital call. The commitments help the fund manager plan its investment strategy and ensure that it has sufficient capital to execute its investment plan.

It is possible to track and post fund commitments, agreed or received for a certain fund, through the Fund Commitment document and Fund Journal. Posting the document results in creating fund ledger entries of type commitment.

Fund commitment

Create a new Fund Commitment

Choose the 🔎 icon, enter Fund Commitments, and then choose the related link. Select New to create a new document.

• Enter the Funder No. by selecting an existing funder.
• Fill in the remaining fields on the Fund Commitment page as necessary. Hover over a field to read a short description.

You’re now ready to fill in the Lines FastTab, with Funds you are creating the commitments for.

The Lines fast tab allows to create fund commitment lines. The following fields contain information regarding the lines:

• Select the Fund No. you want to create a commitment for.
• Fill in the total Amount of the commitment entry.
• Select an Expiry Date which represents the date when the commitment expires and can no longer be applied to costs.
• Fill in the remaining fields on the Lines. Hover over a field to read a short description.
• When the Lines are completed, choose the Post action.

The related Fund Commitment is now posted and has created Fund Ledger Entries of type Commitment. The fund commitment is removed from the list of fund commitments and replaced with a new document in the list of Posted Fund Commitments.

Fund journal

The Fund Journal can be used to post commitments, but this is not its primary use, it is used for more special cases. The journal is a way to create fund ledger entries without using fund commitment documents, and its primary use is to make corrections or end of process changes.

Posting through the Fund Journal

Choose the 🔎 icon, enter Fund Journal, and then choose the related link. Select a Fund Journal Template from the ribbon, then complete the fields to create a fund journal batch. Fill in the fields based on the descriptions in the following list:

• From the journal, only Ledger Type commitment is available, as allocations are done from the Fund Allocation page.
• Select the Fund No., which will populate the Restricted Fund field, to provide information if the fund is restricted or not.
• Select the Funder No. the journal line will be posted to.
• Enter the total Amount for the commitment line.
• Enter the Expiry Date which specifies the date when the commitment expires and can no longer be applied to costs'
• Fill in the remaining fields on the Lines. Hover over a field to read a short description.
• Set up more dimensions from page action Line -> Dimensions.
• Post the Journal Line from page action Post.

View the posted journal line by opening Fund -> Ledger Entries.