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GAAP, FASB compliant software

MCA - Merchant Cash Advances Discount and other Deferral Recognition Software



GAAP, FASB ASC-310-20 Monthly, Annual Recognition
     MCA Originators:  Discounts, other Income and Expense for daily, weekly pay deals
     MCA Investors:  Discounts, Premiums and Expense for daily, weekly pay deals


Import a Deals file to software on your PC, network sharing or cloud based system
Amortize Discounts, other income and expense using IRR effective interest method:
     Monthly discount Income, other income and expenses such as broker fees, bank fees ....
     Accumulated recognition
     Deferral balances for discounts, other income and expense including NPV (net present value)
     Year To Date income, expense.
Produce a lifetime ASC-310-20 deferral recognition schedule for each Deal.
     From the original Deal date or a Conversion date (preserve previously recognized income)
Generate a complete set of monthly accounting reports for your general ledger.

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     Highlights
     Price page and free demo



Hard to find
(including custom)
GAAP
Amortization
Software to run on a
PC,
Network sharing or
Cloud based system
supporting Windows



















Conversion file:

     •  A Conversion file preserves recognized discount income (and other income and expense) prior to the conversion date.

     •  Convert as of last month, end of prior fiscal year, some other month.



No conversion balances?

     •  The software can calculate income and expense recognition from original Deal date,



About ASC-310-20:

     •  When monthly payment activity deviates from what had been anticipated,

     •  The software calculates a new ASC-310-20 recognition schedule using a new effective interest rate.

     •  Adjustments to income due to a new effective interest rate are recognized in a subsequent month.

     •  You DO NOT change income which has already been booked.














Configure the software to meet your requirements ....


Configuration 1
Monthly Recognition with a Payments File



Import a Deals File to the software each month.
     Create an extract file from your servicing system in Excel.
     Supports Daily and Weekly payments.
     Deals can be short term or span multiple years.
     Values are reduced by any investor syndicated %.

Import a Payments File at the same time.
     Create an extract file from your servicing system in Excel.
     The software "matches" Payments to Deals.
     Payments are reduced by any investor syndicated %.
     Payments can be current month only or life-to-date and
     are valid for any date including weekends and holidays.

Calculate IRR Internal Rate of Return.

Calculate NPV Net Present Value.

Calculate monthly Discount Income recognition.
     Calculate other income and expense, too, such as
     Bank Fees, Attorney Charges ....

Generate totals for:
     Original Discount
     Current month income + year to date income
     Accumulated income
     Discount balance
     Current Face Value based on Payments File
     Carrying Balance (NPV)

Verify results.
     Create ASC-310-20 recognition schedule for any deal.

Recalculate IRR and NPV due to irregular Face Value reductions.
     Bounces, skips, partial payments, early payoff ....

Calculate prior monthly income Adjustments under ASC-310-20.
     The software tracks monthly activity in a History file.
     Adjustments are booked in a subsequent month.
     You do not have to restate prior month income. 

Produce:
     General ledger subsidiary listing
     Journal voucher posting document
     General ledger upload posting file


Configuration 2
Monthly Recognition without a Payments File



Import a Deals File to the software each month.
     Create an extract file from your servicing system in Excel.
     Supports Daily and Weekly payments.
     Deals can be short term or span multiple years.
     Values are reduced by any investor syndicated %.

Payments are an average of:
     Prior month Face Value minus Current month Face Value
     with allowances for weekends and holidays.
     The software maintains a History of monthly activity and
     retains prior month payments and Face Values in
     order to meet ASC-310-20 "look back" requirements.

Calculate IRR Internal Rate of Return.

Calculate NPV Net Present Value.

Calculate monthly Discount Income recognition.
     Calculate other income and expense, too, such as
     Bank Fees, Attorney Charges ....

Generate totals for:
     Original Discount
     Current month income + year to date income
     Accumulated income
     Discount balance
     Current Face Value from the Deals File
     Carrying Balance (NPV)

Verify results.
     Create ASC-310-20 recognition schedule for any deal.

Recalculate IRR and NPV due to irregular Face Value reductions.
     Bounces, skips, partial payments, early payoff ....

Calculate prior monthly income Adjustments under ASC-310-20.
     The software tracks monthly activity in a History file.
     Adjustments are booked in a subsequent month.
     You do not have to restate prior month income. 

Produce:
     General ledger subsidiary listing
     Journal voucher posting document
     General ledger upload posting file





Configuration 3
End-of-Year Deferral Balances with or without a Payments File


Operates similarly to Configurations 1 or 2.

Designed for MCAs operating on a cash basis throughout the year requiring IRR and NPV calculations at the end of the year.

Import a Deals File to the software.
     Create an extract file from your servicing system in Excel.
     Supports Daily and Weekly payments.
     Deals can be short term or span multiple years.
     Values are reduced by any investor syndicated %.

Without a Payments File, Payments are an average of:
     Original Face Value minus Current month Face Value
     with allowances for weekends and holidays.

Verify results.
     Create Deferral recognition schedule for any deal.

Instead of monthly recognition, output provides
Current Discount and other Deferral Balances.


Compare software IRR generated Deferral Balances to Cash Basis general ledger balances.  Use adjusted numbers for whatever purpose.

































































GAAP, FASB recognition software for Merchant Cash Advances with daily, weekly payments


Amortize dozens, hundreds, thousands of MCA deals at the same time
     IRR Effective interest rate calculation for each record.
     Lifetime amortization schedule for each fee, for each record.
     % reductions for joint venture, syndicated participations.
     Freeze Schedule when a deal goes bad.
     Clear up audit exceptions with a minimum amount of effort.



Determine what Discount, other Income and Expense Balances should be when
using the effective interest method for daily, weekly payments

     End of month
     End of year
     Designed to eliminate footnote exceptions on Financial Statements



Calculate all MCA records at the same time:
     GAAP, FASB effective interest rates (IRR)
     NPV Net Present Value (Carrying Balance, Book Value)
     Discount on Proceeds Balance (Deferred Income Balance) plus other deferred income, expense



Audit schedules for each record:
     Day-by-Day recognition schedule which opens in Excel
     Monthly totals
     Supportive documentation
     IRR, NPV independent verification in seconds
     Show results to your auditor








Easy to operate

Automatically import a Deals file to the software
Import basic information for each Deal consisting of:
     Deal number/Description
     First pay date
     Final pay/maturity date
     Original Face Value
     Discount (or other fee to be amortized as income, expense)
     % Owned if syndicated
     Current Face Value
     General ledger accounts if desired
     Payment frequency:  Daily, Weekly
     Payment amount



Payments file 
(if you do not have a Payments file the software will calculate payments as a daily average of the difference between monthly Face Values)
The software can also import a Payments file at the same time consisting of:
     Deal number
     Payment date
     Payment amount


The software matches Deals with Payments to generate reports and individual recognition schedules based on an average daily payment.
The software also does a projection of anticipated Payments from the import month through the Final Payment Date of each record using:
          The contracted Payment amount which may or may not satisfy Current Face Value as of Final Payment Date or
          A calculated Payment amount which will satisfy Current Face Value as of Final Payment Date or, at your option or,
          Extend the Final Payment Date to so as to satisfy Face Value based on payments.



Future daily payments exclude the following dates:
     Saturday
     Sunday
     And the observed day for
     New Year's
     Martin Luther King birthday
     Memorial day
     July 4th
     Labor day
     Veteran's day
     Thanksgiving
     December 25th
     Exception:  If a Final Payment date falls on any of the above, the Final Payment will become a Payment.







A Parameters (.txt) File lets you determine your configuration
FTTFFTTT
The above row carries the T or F value for the following:
T/F


T/F



T/F


T/F


T/F


T/F


T/F
True = Import Payments File.
False = NO Payments file. Payments from First Due Date to import month will be calculated as ((Original Face Value - Current Face Value) / Payment Days)

True = Use First Payment Due Date.
False = First Due Date is a Deal date.  If False, Weekly Pay first date will be Deal date + 7 days.
     Deal Date is statistical only and, if blank, will be set to First Due Date.

True = Calculate second period payments (import month through Final Payment Due date) based on imported current face value.
False = Use imported Payment amount.

True = For Investors, do not take syndicated %Owned when importing Expense.
False = For MCA, apply %Owned to all values during import process.

True = For Investors, switch syndicated percentage from MCA reported, such as switch MCA 80% owned to Investor 20%.
False = For MCA, leave %Owned as is.

 True = Create monthly Histories for Posting adjustments. False = no posting adjustments.
     If "Import Payments File" = True, this value is automatically set to True

True = Recalculate the imported Final Payment Due date to be (Current Face Value/Payment) adjusted for Payment Days (none due on weekends, holidays)
False = use imported Final Payment Due Date.
      If this is True, "Calculate second period payments" will be set to False.
 
 







Price
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For more information, please call
1-800-245-8444  (Florida, Eastern Time)
or
email Support@fdssi.com
 



 
  GAAP, FASB ASC 310-20 Merchant Lending Amortization
Software for Windows® on a computer, laptop, shared network and cloud based systems
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