If you don't complete the cashflow setup via Jobs > Job Financials > Cashflow Setup, JACK applies default settings to show you a cashflow forecast with a relative amount of accuracy. You are however required to complete the cashflow setup in Settings > Cashflow Setup and add details relating to:
Default Bill Payment Terms: Invoice trigger can be schedule item complete or the end of the month, and terms are set in days. This will help the system estimate when your supplier/contractor bills will be due for payment.
Default Invoice Payment Terms: This is the number of days you typically give your customers to pay their invoices.
Target Markup: This is the markup you aim to achieve across all jobs. Not to be confused with builders margin. Eg. a Markup of 33% results in a 25% builders margin.
Cost Plus Frequency: This affects the frequency at which cost plus jobs are invoiced.
1. Default cashflow settings for cost-plus jobs
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 bill payment terms and will also take into account your target markup.
2. Default cashflow settings for fixed-price and percentage-complete jobs
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.
The cash inflows will not be estimated until draft client invoices are created and scheduled.
Percentage-complete jobs will be treated the same as fixed-price jobs within JACK, except for how client invoices are created, using a total percentage of the owner price vs. a dollar amount to be invoiced.
