Overview
JACK automatically applies default settings to generate a forecast with a reasonable level of accuracy. Before using custom or default cashflow forecasting, complete your setup in Settings > Cashflow Setup.
Cashflow Setup
Default Bill Payment Terms
Set the number of days and trigger used to estimate when supplier/contractor bills are due. The invoice trigger can be either Schedule Item Complete or End of Month, with payment terms set in days. I.e., how many days after a scheduled item is marked complete is the bill due?
Default Invoice Payment Terms
Enter the number of days you typically allow customers to pay their invoices.
Target Markup
Set the markup you aim to achieve across your jobs. This is not the same as your builder’s margin. I.e., a 33% markup results in a 25% builder’s margin.
Cost-Plus Frequency
Choose how often cost-plus jobs are invoiced.
⚠️Remember to Save any changes.
Fixed-price Job Settings
For a fixed-price job with no cashflow setup completed, JACK will take the expected total costs and spread the cash outflows evenly over the job duration. The job duration will be calculated using the start date of the first schedule item and the end date of the last schedule item, 60+ days for default supplier/subcontractor payment terms.
If you don't have scheduled progress claim invoices set up, cash inflows will be evenly distributed across the project's duration. The schedule determines the duration; if there is no schedule, the default project duration in your settings will apply. For more accurate cashflow forecasting, set up & schedule draft client invoices.
Percentage-complete jobs are managed the same way as fixed-price jobs, with the only difference being how client invoices are created using a percentage of the total contract value rather than a fixed dollar amount.
Cost-plus Job Settings
For a cost-plus job with no cashflow setup completed, JACK will take the expected total costs and spread the cash outflows evenly over the job duration. The job duration will be calculated using the start date of the first schedule item and the end date of the last schedule item, 60+ days for default supplier/subcontractor payment terms.
The cash inflow will be estimated using the default invoice payment terms and will also take into account your target markup.
When no client invoices have been created or scheduled, JACK will evenly distribute the total remaining contract value & variations across the duration of the project. The schedule start and end dates determine the duration, or if you have no schedule, the default project duration in your settings will apply.
Custom Cashflow Setup
By default, a cost category’s budget is evenly spread across the full duration of a job, from start to finish. For more accurate cashflow reporting, you can link the cost category to a schedule item. When linked, the budget is recognised based on the schedule item’s planned completion date instead of being distributed evenly, ensuring costs align more closely with when the work is actually scheduled to occur.
To set up custom cashflow forecasting, navigate to Jobs > Job Financials > Cashflow Setup, or streamline the process by setting up in your Job Template(s).
Enter a Payment Amount as a percentage for each schedule item. You can allocate amounts across all schedule items, or choose to apply them only to the items linked to your client invoices.