Draw Requests¶

Overview¶

A draw request is a Development capital event that documents how funding is sourced and how it is used for a construction or development draw. You build a draw request from invoice charge items (and optional manual property lines), optionally assign debt and equity funding shares, then approve and track settlement.

Draw requests sit under Development and are scoped by the properties on their use lines. They do not post ledger bundles when you mark them paid; settlement status is recorded for tracking. Related vendor invoices continue to follow normal payable approval and payment. See Jobs and Budgets, Loans, Payables, and Process Payments.

Definitions¶

Draw request: A capital event of type Draw Request. It has a Request Date, description, notes, optional sources, and one or more uses.
Sources: Funding composition rows. Each row is Debt or Equity, with a percentage share of the draw total. A debt row may link to a loan; an equity row may link to a legal entity. Sources are optional.
Uses: Spend lines on the draw. A use is either:
Linked to a payable charge item (invoice line), with a requested amount that reserves capacity on that charge, or
A manual property line with no payable (an adjustment or uncoded amount for a property).
Workflow status: Drafted, Approved, or Rejected. This tracks approval, not settlement.
Payment status: Unpaid, Payment in Transit, Partially Paid, Paid, or Cancelled. This tracks settlement of the draw itself.
Total draw amount: Sum of all use amounts on the draw request.
Source amount: For each source row, percentage × total draw amount.

Rules and Behavior¶

Creating and editing¶

Use Add Draw Request from Manage Draw Requests. New draws default the Request Date to today. The wizard walks through:

Setup — Request Date and description (required), optional notes.
Sources — Optional debt and equity rows. Percentages must total 100% when any sources are present. You can include loans and legal entities outside the current property selection with Include Out-of-Scope Equity and Debt.
Uses — Select eligible invoice charge items and enter a requested amount for each (and optional notes). By default, only charge items tied to a job (development project) appear; turn on Include Non-Job Invoices to include other invoices with a vendor charge in the selected properties.
Adjustments — Optional manual property lines (property and amount greater than zero).
Review — Confirm totals, sources, and uses before save.

Saving requires at least one charge-item use or one manual line. Currency is set from the properties on those lines; every line must share a single currency, and each property must have a currency set.

Who can edit what¶

Full edit (wizard, sources, and uses) is available while the draw is drafted, or while it is approved with an active payment status if you have permission to edit approved capital events. Users with a pending approval step on the draw can also fully edit.
Informational edit (description, notes, and documents only) is available unless the draw is cancelled or rejected.
Cancelled and rejected draws cannot be edited.

You can also add charge items from an unapproved, editable draw request while working a payable (see Payables). Appending to an existing line on the same draw increases that line’s amount.

Development Funding Uses¶

Development Funding Uses lists payable charge items that still have amount available to include on a draw. A charge item appears when all of the following are true:

The invoice is approved and paid.
The charge is coded, through its vendor charge, to an approved development job that is still active. Capex jobs and closed jobs are not included.
The charge amount is not zero, and the charge is tied to a property.
Some of the charge amount is not yet reserved by a non-cancelled capital event. A charge that is only partly reserved stays on the list until the full amount is reserved. Cancelling a draw releases that reservation.

The list follows the properties currently selected in the asset selector. You can narrow it further by invoice, vendor, job, cost code, contract, property, or amount.

Approval¶

Approve when the draw is Drafted and not cancelled. Approval requires:

Request Date and description
At least one use line
Valid source composition when sources are present (each percentage greater than 0% and at most 100%; all percentages sum to 100%; loan rows must be Debt; entity rows must be Equity; a source cannot link both a loan and an entity; each loan or entity appears at most once; an equity entity must be a legal entity, not a property)

Approval does not create bookkeeping bundles for the draw. Vendor invoice accounting remains on the payables.

Payment status¶

After approval, set payment status manually as settlement progresses:

Open draws (Unpaid or Partially Paid) can move to Payment in Transit or Paid.
Payment in Transit or Paid can move back to Unpaid.
Marking a draw Paid does not create ledger bundles. Use that only when bank activity is already accounted for another way.

On Manage Draw Requests, the status column prefers payment status after approval, while Drafted and Rejected still show as workflow states.

Cancel and delete¶

Cancel sets payment status to Cancelled on an approved draw that is still Unpaid or Payment in Transit. Cancellation keeps source links for history and releases the draw’s reserved amounts on payable charge items so other draws can use that capacity.
Delete removes an unapproved draw (Drafted or Rejected) that is not cancelled and has no pending workflow steps.

Process payables from a draw¶

From View Draw Request, when the draw is not cancelled or rejected, you can process eligible linked payables: approved (active) invoices that still have an open payment status and a remaining balance. That continues into the normal Process Payments flow for those invoices.

Documents and exports¶

Generate Draw Packet builds a PDF from a capital-event packet template when you have full-edit access. Generation runs asynchronously; refresh to see the finished document.
Invoice PDFs follow the cost-code groups and invoice rows in the packet's invoice section. An invoice listed more than once has its PDFs appended once, at its first occurrence. Multiple PDFs for one invoice stay together in upload order. Manual lines and invoices without PDF uploads add no attachments.
Download Uses exports the uses table as a spreadsheet.

Budget context on the draw¶

View Draw Request includes a development budget table for the properties on the uses, with a Current Draw (or named-draw) column showing amounts allocated on this draw by job and cost code. Amounts without a job and cost code appear as uncoded. Standard budget categories on that table follow the same meanings as Jobs and Budgets.

Development Liquidity¶

Development Liquidity treats the selected Start Period as the draw-comparison month. Non-zero use amounts on drafted and approved capital events whose Request Date falls in that month appear in Draws; rejected and cancelled events are excluded. Details are in Jobs and Budgets.

Calculation Details¶

Total draw amount¶

Total draw amount = Σ use amounts

Use amounts come from selected charge-item allocations and manual property lines.

Funding source amounts¶

When sources are present:

Source amount = source percentage × total draw amount

Percentages are entered as shares of the draw (for example 60% debt / 40% equity) and must sum to 100%.

Payable charge capacity¶

A charge item’s remaining capacity for capital events is:

Remaining available = payable charge amount − amounts reserved by non-cancelled capital events

Drafted and approved draws that are not cancelled all reserve capacity.
Cancelling a draw releases its reservation.
The default requested amount on a new selection is the remaining available amount; you can request less, or a negative adjustment when the charge supports it.
Requested amounts cannot be zero.
A positive request cannot exceed remaining available (including capacity already taken by another capital event).
The same charge item appears only once on a given draw; adding it again increases the existing line.
Draw requests, contributions, and distributions share the same charge-item capacity pool.

Changing a payable charge amount below what non-cancelled capital events have reserved is blocked.

When a payable is cancelled:

If it is linked only to a drafted draw, that allocation is removed from the draft.
If it is linked to an approved draw, the allocation and link are preserved for audit; correct amounts on an editable draw with replacement or adjustment lines as needed.

Common Scenarios¶

A construction manager builds a monthly draw from approved job invoices, assigns 70% construction loan and 30% sponsor equity, then generates a draw packet for the lender.
An AP user opens an unpaid invoice and adds selected charge items to an existing drafted draw instead of re-entering them in the wizard.
After the lender wires funds, a controller marks the draw Payment in Transit, then Paid, without expecting Credence to post new draw bundles.
A draw included the wrong invoice; the team cancels the draw so those charge amounts become available for the next draw, then builds a corrected request.
Development Liquidity for March shows Draws for capital events whose Request Date is in March, even when the invoices were coded in an earlier accounting period.