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 commitment line inherits the dimensions from the Funder and Fund. Learn more about dimensions in Dimensions in Pryme Funding.
• 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.

Cash Receipt Journal

With a commitment it is hard to track if the money have been received. By applying payments to commitments, a direct link would exist. This enables seeing what is outstanding to be paid.

The field Applies-to Commitment in the Cash Receipt Journal allows the user to select a fund ledger entry for a commitment related to the customer. When the journal line is posted, a detailed fund ledger entry of type payment is created for the selected commitment.

Payment Journal

With a commitment, it’s important to track when funds are refunded. By applying refunds to commitments in the Payment Journal, the system maintains a direct link that adjusts received amounts accordingly.

The field Applies-to Commitment in the Payment Journal allows the user to select a fund ledger entry for a commitment related to the customer. When the journal line is posted, a detailed fund ledger entry of type payment is created and deducts the refunded amount from the previously received total.

Connecting invoicing with commitment

You can connect sales invoices and payment application to fund commitments so that received amounts are updated automatically and consistently.

Select a commitment on a sales invoice

On the Sales Invoice, use the Fund Commitment field to link an invoice to a commitment.

When you post a sales invoice, the Fund Commitment value is copied to the posted sales invoice. This value is later used when applying payments.

A new Commitment No. field is available on Customer Ledger Entries to show the commitment linked to the invoice.

Applying payment to posted sales invoice

When applying entries in journals (for example from the Cash Receipt Journal):

• If the posted invoice has a Fund Commitment, the commitment is inherited automatically during application.
• Each application line supports one commitment.
• Payments can be fully applied, partially applied, or split across multiple invoices.
• Use Commitment Amount to Apply to define the applied amount without VAT.
• Commitment No. is shown during application if a commitment is linked.
• You can choose either a commitment manually or apply entries to an invoice. If one is selected, the other is cleared.
• A commitment can be selected only when it is still open (received is not 100%).
• Posting updates Received amount of the commitment’s fund.

In all cases, commitment updates are based on the actual applied amount excluding VAT. Any unused commitment amount remains available.

Connecting credit memos with commitment

You can connect credit memos and refund application to fund commitments so that refunds are applied to the correct commitment and received amounts are updated consistently.

Select a commitment on a credit memo

On the Credit Memo Header, use the Fund Commitment field to link a credit memo to a commitment.

When you post a credit memo, the Fund Commitment value is copied to the posted credit memo. This value is then used during refund application.

A new Commitment No. field is available on Customer Ledger Entries and stores the linked commitment for credit memos and refunds.

Applying refunds to posted credit memo

When applying entries in journals (for example from the Cash Receipt Journal or Payment Journal):

• If the posted credit memo has a Fund Commitment, the commitment is inherited automatically during application.
• Each application line supports one commitment.
• Refunds can be fully applied, partially applied, or split across multiple credit memos.
• Use Commitment Amount to Apply to define the refund amount without VAT.
• Commitment No. is shown during application if a commitment is linked.
• You can choose either a commitment manually or apply entries to a credit memo. If one is selected, the other is cleared.
• A commitment can be selected only when Received amount is greater than zero.
• Posting updates Received amount of the commitment’s fund.

In all cases, commitment updates are based on the actual applied amount excluding VAT.