How cash flow forecast works

Introduction

The cash flow module automates cash flow forecasting for your CostTracker budgets. Payment dates are calculated automatically from each item's delivery date and payment terms, and you can adjust any date manually.

The forecast works alongside your accounting system using a cut-off date. The cut-off date splits responsibility between the two systems so that every cost is covered exactly once — either in your accounting system or in CostTracker — with no gaps and no double-counting.

How the forecast behaves depends on whether you use planned purchases:

• Using planned purchases (to track Estimate At Completion) — you get a real-time view of all outstanding payments in your budget/project after the cut-off date.
• Not using planned purchases — you get a cash flow forecast for all open purchase orders (open commitments) and invoices dated after the cut-off date.

How the cut-off date works

The cut-off date is the line between "already handled in accounting" and "forecast in CostTracker":

• Invoices with a document date on or before the cut-off are out of scope for CostTracker — they're already booked in your accounting system (for example, as aged accounts payable).
• Invoices dated after the cut-off, together with all open commitments (POs not yet invoiced), are forecast in CostTracker by their expected payment date.

Example

Your budget has committed costs of 300:

With a cut-off date of 31 January:

• Items (1) and (2) appear in the CostTracker forecast — 100 expected in February and 100 in March.
• Item (3) has a document date on or before the cut-off, so it's out of scope for CostTracker. You'll find it under "Aged accounts payable" in your accounting system (if not already paid).

Milestone/progress-based invoicing

For purchase orders where milestone based invoicing is agreed with the supplier, you can create a payment plan in the PO with corresponding payment dates that will be displayed in the cash flow forecast. When invoices are matched with the PO they will match automatically with the milestones from the first to last.