8.2 Project Liquidity Report (08603m)

Project businesses should be focused on managing their liquidity - something overlooked in simple job cost software. The majority of business collapses are due to liquidity failures, ie: unable to pay the bills in a timely manner; often after just declaring a major (paper) profit.

The need to tightly manage liquidity (cash) is absolutely critical. Hence Muli, with the project prepayment concept, focuses on cash received by project, less approved costs, rather than just Accounts Receivable. Project teams have been known to create accounts receivable claims that have no chance of ever being paid by the client.

1. Company - Range with a default of one company
2. Profit Centre - This allows for selection regional profit centre over multiple companies
3. Show posted contribution or worksheet (Worksheet or Contribution)
   Because the value of contribution taken from a project is considered a job cost, the report may be based on actual contribution or the result of using the earned contribution as set in the contribution worksheet. This may be used as part of validation to ensure too much contribution is proposed to be posted, giving -ve project prepayment.
   Note: if worksheet is used, a warning is provided at the bottom of the report “posted values not used for report”
4. Show unapproved or accrued values (Unapproved or Accrued)
   There are two ways of trying to quantify the value of work done but not yet included in the approved accounts. In theory, by asking the project team to manually quantify the values using the [7.3] accrual process, but this is time consuming, while the tracking of the unapproved invoice values is a simple indicator of slow accounts payable processing.
   Remember, there is still much work done but not yet invoiced by suppliers and subcontractors.
5. Show Subtotal by (Company or Profit Centre)
   Allows you to determine the subtotals in the report.
6. Include Projects (operational or All Active)
   To enable the de-cluttering of a management report, so project of status 243 = CFHO are excluded.