A purchase order is an agreement established between a lender –usually a financial institution– and a customer. The purchase order in Fairways Debt represents an envelop of individual loans (i.e. loan orders) used for different projects requiring substantial investments. These loans are then negotiated between a lender and a borrower and submitted to a validation workflow between this lender and this borrower.
Prerequisites
Contact your Finance Active consultant to:
- Enable the Purchase Order transaction type
- Associate your user with the relevant role to be able to create purchase orders
Navigate to the Debt & Derivatives Application
- Log in to your Fairways Debt account.
- Select a customer account.
- Navigate to Applications
> Debt & Derivatives.
Create a Purchase Order
- Click Add Transaction > Facility > Purchase Order.
- Complete the form with all relevant details.
Note: Fields marked with an asterisk * are mandatory.
Field | Description |
---|---|
Reference Code |
Unique reference of the transaction. Identifies the transaction in the portfolio. Note: The reference must be unique among all the entities managed in the account. |
External Reference Code | Used by external systems to identify the transaction. Used when transactions are imported from or exported to another system. |
Initial Limit | Maximum authorized amount for all the loans in the envelope. |
Currency | Reference currency. |
Borrower | Borrowing entity in the system. |
Lender | Lending entity. Can be either internal (an entity in the system) or external (a commercial bank). |
Facility Type |
Revolving or non-revolving. Note: Once the purchase order is created, you cannot edit its facility type. |
Field | Description |
---|---|
Trade Date | Date at which the transaction has been traded. From that date, the system takes the transaction into account as an item of the portfolio. |
Start Date | Unadjusted start date of the transaction. |
Maturity Date | Unadjusted maturity date of the transaction. |
Field | Description |
---|---|
Index |
Name of the index used to calculate the rate value, e.g. FIXED for fixed rate. Note: The field beside displays depending on the index selected. |
Interest Rate |
Fixed rate value in percentage. Note: This field only displays for fixed indexes. |
Initial Interest Rate |
Initial rate of the custom index. Note: This field only displays for the custom index. |
Spread | Spread (or margin) value in percentage. |
Day Count | Used to compute the day fraction of an interest accrual period. |
Frequency | Frequency of the payments. |
Note: When the borrower creates a loan order in that purchase order, the loan default values pre-fill the creation form, but remain editable.
Enter the required custom attributes, if any.
- Enable Show Details after Validation to automatically open the new purchase order profile once created.
- Click Apply.
The new purchase order displays in the draft portfolio.
Note: The purchase order must be moved to the actual portfolio to allow the borrower to create loan orders in that purchase order.