Monday, July 04, 2016

UniPhi 12 - Upgraded cash flow phasing

Key to the successful deployment at a recent client of ours was the upgrading of our cash flow capabilities. We have already referenced some of these including the only known software product on the market that can phase cash flows based off the earned value profile of a collection of similar projects. However, there is much more just in time for our 12 release including:

  • More user friendly navigation of cash flow forecasts with more filters and an excel grid look and feel
  • Linking the start of one cost or revenue codes phasing based off the end of another
  • Linking the phasing of a cost or revenue code to the start and/or finish date of a lifecycle phase
  • Applying a non-benchmarked "S" curve algorithm
  • Productivity adjustments for auto phasing
  • Ability to shift the start date of a project which already has a cash flow

We will now go through each new feature one by one:

When entering the phasing screen the default start month is either the first month that already has a value or the start date of the project. You are then presented with a 12 month period and Previous/Next navigation options. You can jump to a date in the future by selecting the start date.
The real key is the presentation of all data on one screen (including children projects within the parent and contracts phasing in the same screen). Filtering then allows the user to remove the noise including a levels filter to display the relevant level of codes/contract deliverables that you wish to phase against and focusing on either forecasts or budget. Of course there's still the "All" view that shows budget versus actual and variance for analysis purposes.

The new cash flow phasing screen with contracts displayed against their relevant code.

The key to the next two features is to streamline the adjustment of cash flow phasing as things change. An example of this is the fact that settlement of units sold during construction phase will always occur after a certain period (e.g. 2 weeks) that the certificate of occupancy is obtained. There are two ways to link these two events in UniPhi, 1) link the construction cost code to the revenue code or 2) link the construction lifecycle phase to the revenue code. In both events, changing the end date of construction will automatically push out the start date for sales settlements.

Linking dates for automated cash flow phasing
Added to the automated phasing methods are our unique "Benchmark" method and a standard construction 'S' Curve algorithm. These methods can be chosen per cost code or for the project as a whole with the relationship maintained for any changes to dates and durations. Also included is the simple "adjust start" function which allows you to shift the phasing profile forward or backwards in time to allow for changes to planning decisions and internal approvals (as are wont to occur).

Finally, the 'S' curve algorithm's can be adjusted via a simple productivity percentage applied to financial months that are typical of down time in your industry or geographic location. As an example, you might apply a 50% reduction adjustment for December January in Australia to allow for the fact that the construction industry shuts down for four weeks over the Christmas and New Year period.

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