Cash flow monitoring allows you to monitor both the forecasted and actual cash flow of a project. This can be done while the project is in progress or you can choose to view the cash flow of a completed project.

Cash flow monitoring is typically practiced by companies with long term projects such as engineering and construction, but can also be used by service companies in shorter terms and with smaller service requests.

With this feature, you can evaluate a single project, use the reports to view multiple projects, and transfer the cash flow to the cash flow forecasts in the .

This topic contains examples that describe setting up forecasted and actual cash flow.

Cash in flow forecasting

Based on what you have defined in the form and the form, you can forecast the cash flow of a selected project. For example, if the project date is March 5, 2007 and you invoice on March 31, 2007, you can forecast the and the .

  • - March 5, 2007.

  • - March 31, 2007 - This date is determined when you set up invoice frequency on the project contract form. In this example, the invoice frequency is set to the current month which means that all transactions posted in the month of March are invoiced on the last day of the month or March 31, 2007.

  • - April 14, 2007 - This date is determined by what you select for the in the form for this project. The example here is using a of 14 days. Adding the 14 days to the invoice date results in a of April 14, 2007.

  • - April 27, 2007 - This date is determined by adding the , which is determined in the form, to the days, which is defined on the form and then adding the total to the . So if you have three set in the form and ten days set in the form, a total of 13 days should be added to the to find the .

are set in the form and can be used either as a replacement for the days, or in conjunction. If you are using the as a replacement, you can calculate the average number of days between the and the actual payment date calculated for customers.

If you use the in conjunction with the days, the number of is often calculated from the delay in payment between when the payment is sent from the customer and when the payment is received by your company.

days are set up on the form. The days are calculated based on both the sales and your companies experience with the customer's payment pattern.

Cash in flow actual

Actual cash in flow is quite similar to forecasting except that you can begin your calculations from the first . For example,

  • - March 2, 2007.

  • - March 16, 2007 - with set to 14 days.

  • - March 29, 2007 - with set to three days and days set to ten days.

Cost forecasting

Based on what you have defined in the form, the can be different than the . When this is the case, the is calculated by adding the and the that have been set in the form.

For example, if the of the transaction is March 5, 2007 and you have set the following :

  • Hours - Current month (M)

  • Expenses - 14 days (D14)

  • Items - 30 days (D30)

  • Then the will be:

  • Hours - March 31, 2007

  • Expenses - March 19, 2007

  • Items - April 4, 2007

Note Note

The for a purchase order does not follow the setup in the form. Instead, the is based on the vendor transaction when the project purchase order is created.

The is not calculated with buffer days as the is. When a project is finished and all costing and invoicing is complete, both the cost and the sales will be posted to the accounts.

When all sales and vendor invoices are completed, the relationship between the form and the form can be seen:

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