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Cashflow Calculation - Forecast Amounts
Proliance can display up to three forecast amounts for every
included cost account on the Cashflow
- Worksheet page: Invoice (Forecast), Retainage (Forecast),
and Retainage Release (Forecast).
The two retainage-related forecasts are calculated only if
retainage is being used. The inclusion of retainage is set on the Cashflow - Main
page, under the Default Settings
section.
Calculating the Invoice (Forecast) Amount
Proliance calculates the Invoice (Forecast) amount for each
workspace cost period for a cost account as follows:
(Estimate at Completion (EAC) - Invoice (Actual)) / number
of workspace cost periods
For additional information about each item in the calculation:
Calculating the Retainage (Forecast) Amount
If retainage is used, Proliance calculates the Retainage
(Forecast) amount for each workspace cost period for a cost account as follows:
Invoice (Forecast) * Retainage percent * (-1)
For additional information about each item in the calculation:
- The Retainage
percent is set on the Cashflow
- Cost Accounts page.
- Multiplying the result
by (-1) is intended to change the sign of the value (for example, from
positive to negative).
Calculating the Retainage Release (Forecast) Amount
If retainage is used, Proliance calculates the Retainage
Release (Forecast) amounts as follows:
(Sum of Retainage (Actual) + Sum of Retainage (Forecast))
* (-1)
The Retainage Release (Forecast) amount ensures that the
cashflow forecasts the appropriate release of retainage, to prevent outstanding
retainage.
For additional information about each item in the calculation:
- The Retainage
(Actual) amount is described in "Cashflow
Calculation - Actual Amounts".
- Multiplying the result
by (-1) is intended to change the sign of the value (for example, from
positive to negative).
- The periods used
to spread the forecast over are determined from the Retainage
Start Period and Retainage End
Period, from the Cashflow
- Cost Accounts page.
Sample
'Forecast Amount' Calculation
This example illustrates how Proliance calculates the
forecast amounts in a cashflow worksheet.
-
12 workspace cost periods: #1 - Jan to
#12 - Dec.
-
new cost account: CA01.
-
one cost allocation to CA01: ACR column = Cost
Pending and Amount = $8,000.
-
a new expense pre-commit contract CONT01
and then
a new Schedule of Value (SOV) line item, with Scheduled Amount = $2,000.
-
this line item to CA01 (Amount
= $2,000), ACR column = Cost Pending.
- On the
page of the contract, set the following: Summary Retainage = 10%,
Invoicing Option = No Invoicing Limit.
-
the state of the contract to Pending.
-
invoice INV01 for contract CONT01.
- On the
page of the invoice, in the Details
section, set Cost Period = #1
(Jan).
- On the
page of the invoice, set Pending Invoice ACR Column = Invoice
Certified or Invoice Certified.
- On the
page of the invoice, set To Date General Pct = 50.
- Save the invoice.
-
a new cashflow document CASH01.
- On the
page, set the following:
- On the
page, click Update Cost Accounts.
Select the check box to include CA01
in the calculation. The periods and retainage values will use the settings
defined on the Main page.
- On the
page, click Calculate Worksheet.
Invoice (Forecast) Amounts for CA01:
- Total
Invoice (Forecast) = EAC – Total Invoice (Actual) amount = $9,000
where EAC (Estimate At Completion)
= $8,000 + $2,000 = $10,000 (see )
and Total Invoice (Actual) Amount
= $1,000 (see step 11).
- Forecast will be
done for three periods: from Forecast
Start Period #6 (Jun) to End
Period #8 (Aug). See step 14, items (g) and (d).
- Invoice
(Forecast) for each of the three periods:
Retainage (Forecast) for period #6 (Jun) = $3,000 * 10%*(-1)
= -$300
Retainage (Forecast) for period #7 (Jul) = $3,000 * 10%*(-1) =
-$300
Retainage (Forecast) for period #8 (Aug) = $3,000 * 10%*(-1) =
-$300