A cash flow projection spreads the amounts of a project over time, to work out the net present value of the project. It is entered per project and per cost type. ## Two Steps The calculation has two steps: - Calculating decides the size of each flow, its start and end dates and its distribution method. - Distributing allocates each flow over the days of the calendar. Because the steps are separate, the calculated cash flows can be corrected by hand before they are distributed. A deviating amount replaces the calculated amount in the net present value, and an explanation tells why. ## Where the Flows Come From A cash flow is derived from budgets, contracts, orders, revenues, latest estimates and invoice lines. Each of these holds an expected maturity, an expected end of the maturity and a distribution method. The dates are only used when the projection method needs them. The payment term of a cost type or an invoice sets the difference between the invoice date and the cash flow. See [[Invantive Estate/Concepts/Cost Types|Cost Types]]. A flow that has already taken place, as a receipt or a payment, is marked as settled. ## Projection Method The projection method decides how flows are allocated to periods. The demonstration database holds the methods: - automatic worst-case cash flow, invoice flow and revenue flow; - manual best-case cash flow and invoice flow, with one amount per month. Methods are reference data. See [[Invantive Estate/Reference Data|Reference Data]]. ## Net Present Value The projection holds the percentage by which the present value of the flows is worked out and a separate percentage for what has already been paid or received. An option decides whether interest paid on loans is part of the calculation. The results are the net present value and the net present value without payables and receivables, next to the budgeted and expected investment, divestment and result. A projection can be recalculated, distributed or both again in the future by setting the request fields. The date of the last calculation and the software version used for it are kept. ## Daily Details For each cash flow the distribution is stored as daily details, with the amount of each day. A rounding amount is added to the daily flow to compensate for rounding errors. The explanation can be included in the flows and in the daily flows. ## Reports Reports show the cash flow projections of a project, the details and the flows per cost type. A report over all projects gives the overall cash flow projection. See [[Invantive Estate/Functional Areas|Functional Areas]].