Question
I've entered a dividend distribution schedule from a Holding Company, but nothing is appearing in my client's cash flow. Why?
Answer
A dividend distribution schedule tells Voyant when you would like the Holding Company to distribute dividends, but it does not guarantee that a distribution will occur.
For a dividend to be paid, the Holding Company must have sufficient value available to fund the distribution. If the company does not have enough cash or assets that can be liquidated to meet the scheduled payment, no dividend will be distributed and nothing will appear in the client's cash flow.
If your scheduled dividends are not being paid, check the following:
Does the Holding Company have sufficient assets or cash available?
Are the corporate assets accessible, or are there restrictions preventing them from being liquidated? e.g. A withdrawal limit on the account.
Remember that the dividend schedule represents the desired distribution, while the Holding Company's available value determines whether that distribution can actually be made.
Note: One of the most common items missed is the modeling of an annual revenue flowing into the company. This can be modeled using "Other Income" and assigning the ownership of that income to the company.