In this article you will learn the difference between operating and external financing.
The financing mode can be used to determine whether the cost item is to be financed from operating or external funds. The “Financing Mode” option is available in the “Opex”, “Capex”, “Reserve Account” and “Transaction Expenditures” sections.
- From Operating Cash Flows: Objects with this selection are financed from operating cash flows, i.e. from the sales of the project (default setting for Opex items and reserve accounts) –> This option should be selected if the revenues are sufficient to cover the expenses.
- From External Financing: To be covered by debt, equity or shareholder loans (default setting for Capex items and Transaction Expenditures) –> This option should be selected if the revenues are insufficient to cover the expenses.
If you are editing an Opex item within greenmatch, you can choose between “From Operating Cash Flows” or “From External Financing” in the input field “Financing Mode”.
Screenshot: Setting the Financing mode within an Opex object
In the « Overview » section of the « Internal CF waterfall » chart (this chart shows all cash flows financed from operating cash flows), sales are shown as a line and expenditures as columns below it.
Graph: « Internal CF Waterfall » in the « Overview » section.
