Overview
The Cash Flow module is essential for AECO professionals seeking precise financial management. It provides a 1:1 relationship with your project budget, allowing for accurate forecasting and effective resource allocation. By mirroring your budget structure, it ensures financial oversight is consistent across the entire project lifecycle.
Prerequisites
You must have created your budget and added cost codes to create a forecasted cash flow.
The budget does not need to be approved to create the cash flow.
The forecast is based on the Balance To Complete (Anticipated Total minus Billed to Date) pulled directly from your budget.
Process
In case it is a multisite: You can select and switch between sites to review or modify cash flow on the left-hand panel. You may also collapse these panels to increase your workspace.
How to Create Your Project's Cash Flow
Navigate to the Cash Flow module using the left-hand navigation.
Select the Create Cash Flow button.
The cost codes from your budget will be pulled into the cash flow automatically, mirroring your budget's sites and categories.
Select the start and end date for each anticipated cost. (These default to the project commencement and completion dates).
Select a cost curve type. You can choose from Bell Curve, Straight Line, or Skewed (Positive/Negative). This will automatically calculate each month's forecasted values based on the balance to complete.
To enter specific values into each month's cost forecast, click directly into a cell.
Note: Clicking into a cell will prompt a modal asking if you would like to retain values or Clear values and start from scratch.
Bulk Edit (Optional): You can select all cost codes or a specific subset to update the start date or end date for multiple lines at once using the utility menu in the top-right corner.
Once you have forecasted all anticipated totals to your cash flow, click Save.
Key Definitions & Indicators
Balance to Complete: The amount remaining to be forecasted, calculated as Anticipated Total minus Billed to Date.
Variance Tool Tip: Displays the difference between the balance to complete and the total amount you have forecasted for that specific cost code.
Timeline: Each update made to the cash flow is tracked in the timeline panel for audit purposes.
How to Compare Actual vs. Forecasted Spend
You can compare actual and forecasted totals by month, quarter, and year by using the Summary tab.
Summary Chart: Displays monthly and cumulative views of your forecast vs. actuals.
Filtering: Use filters to toggle Actuals/Forecasts on or off, or to change the date range of the data displayed.
Export: You can export a PDF of the Summary Table (including forecast/actual values and variances) for your records.
How do Invoices Affect my Project's Cash Flow?
Invoices populate the "Actuals" in your cash flow based on the Invoice Date.
By default, actuals post when an invoice is Paid. However, there is a toggle on the Cash Flow to Include Approved Invoices. This pulls in the invoice data as soon as it is approved rather than waiting for payment.
Toggle Confirmation: When you switch the "Include Approved Invoices" toggle, you will see the following message:
"Include Approved Invoices? This will pull in invoices when they are approved rather than waiting for the paid status. Do you wish to proceed?"
Your Options:
Retain values: Keeps your existing manual forecast entries while integrating the approved invoice data.
Clear values: Wipes the current manual forecast for those lines to allow the system to reallocate the remaining balance.
My budget is created. Why can't I create cash flow?
Ensure the cash flow selected is the same as the budget you created in the Master Budget/ACR module. The two budget options are: 'Your' and 'Owner'.
If the Budget has cost codes under the 'Owner' budget but not the 'Your' budget, then you will only be able to create an 'Owner' Cashflow and vice versa.
Ready to Create Your Cash Flow?
By identifying financial trends and potential issues early, this tool enables informed decision-making and helps maintain project budgets and timelines.