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S-Curve

The Calculations, Parameters andFormulas


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2008 Business Connexion (Pty) Ltd

System Parameter Functions

WE17PU Cash flow default valuesWE23PU Cash flow default values per service typeWD16PU Default CPAB Index values

NOTE: the function will always look for the defaultvalues for the specific service type and if not found,then go to the system default values


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WE23PU Cash flow defaultvalues per Service Type

No values entered for any service types


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WE17PU System cash flowdefault values

Values to be used for ALL service types


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WD16PU Default CPABIndex Values

Values entered per YEAR


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Input Values

Contract period (WD01PU/WJ02PU)Cash flow indicator (WE13PU/WE54PU)Financial tender date (WE01PU)


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DATES

Dates will be used and/or calculated in the sequence theyappear from first to last depending if the date exist in thesystem



First delivery date (WG03PU)

Actual first Delivery dateProjected first delivery dateProjected contractual first delivery date



Tender Date

Tender award date (WG03PU)Tender validity extension date (WG01PU)Tender validity date (Actual/Projected) (WG01PU)Tender advert extension date (WG01PU)

Tender advert date (Actual/Projected) (WG01PU)Financial tender date (WE01PU)

NOTE: if the service status is between 3 and 4B andthe tender date is smaller than todays date, tenderdate = TODAY



First payment and Cash flowstart dates (START DATE)

Actual date on which the first construction paymentwas madeSite hand over date (Actual/Projected) (WG03PU)Tender award date (WG03PU)

Tender validity extension date (WG01PU)Tender validity date (Actual/Projected) (WG01PU)Tender date(as calculated previously)

NOTE: if no actual payments were made in the 1stfinancial year, and the date is smaller than today, Startdate = TODAY



Cash flow amount and -date

Last accepted authorized amount and dateLast accepted estimate amount and date

NOTE:If an estimate is used, the following is

applicable;Amounts are escalated and the cash flow date, tender dateand cash flow amounts as above are used for the calculatedyears and amounts



Last payment date

Last actual payment verification dateLast actual payment registration date

NOTE: if last payment date = 0, calculate the new

contract period with the following formulaContract period (WD01PU/WJ02PU) * ((100 + %contract extension) / 100)



End date

If start date smaller than actual first delivery date(indicator = Y, WG03PU)Actual first delivery dateIf start date greater or equal actual first delivery

dateActual first delivery date + contract periodIf contract period less than 16 and last payment date= 0

Add 42

If contract period is less than 4 and projectedSubtract 42



OTHER FORMULAS ANDCALCULATIONS

NOTE:Year (current or previous) refers to a financialyear and not a fiscal year



General

Expenditure Previous Years = Contractor/Supplier/Conveyancer/Lessor expenditure previous years + Journals previous yearsExpenditure Current Year = Contractor/

Supplier/Conveyancer/Lessor expenditure currentyear + Journals current yearTotal Expenditure = Expenditure previous years +Expenditure current yearExpenditure per year = Contractor/Supplier/Conveyancer/Lessor expenditure per year + Journalsper year (10 values)Cash flow years = number of years before thecurrent financial year



General (continue)

Contract value = nett tender amount + VAT ontender amount (WG03PU)T-Value (year) = Number of days between first andlast day of the specific year / Contract period 2 (10

values)Retention value = (Retention represent percentage /100) * Cash flow amountBalance = Cash flow amount Retention valueBalance 1 = Cash flow amount Total Expenditure



Contract Period

If cash flow amount > 999.99 and cash flow dategreater or equal than 19840201

Cash flow year = 1984Amount A = cash flow amount / (CPAB-value (year) / 100) *(cash flow month 2) / 12 + 1

Cash flow year greater than 1984Amount A = cash flow amount / (CPAB-value (year) / 100) *(cash flow month / 12) + 1)

Repeat the following until the cash flow year = 1984Subtract 1 from cash flow year

Amount B = Amount A / (CPAB-value (year) / 100) + 1

This is only calculated when contract period was NOT entered



Contract Period - continue

Add Amount B to Amount AIf cash flow year = 1984

Amount B = Amount A / ((CPAB-value (year) / 100) * (10 /12) + 1)Add Amount B to Amount A

If cash flow amount > 999.99 and cash flow date 0Amount C = Natural logarithm of Amount B

Amount D = .66 * (exponent of Amount C to .0776)Projected contract period = exponent of 10 to

Amount DContract period type = 3



Escalation Formula

If tender date >= cash flow date

If tender year = cash flow yearAmount A = estimate * CPAB-value (year) / 100 * ((tendermonth estimate month) / 12)Amount B = Amount A + Estimate Amount

If tender year not = cash flow yearAmount A = Estimate * CPAB-value (year) / 100 * ((12

Estimate month) / 12)Amount B = Amount A + Estimate AmountRepeat the following until the tender year = cash flow year

Add 1 to tender yearAmount A = Amount B * CPAB-value (year) / 100Add Amount A to Amount B

If tender year = cash flow yearAmount A = Amount B * (CPAB-value (year) / 100) * (Estimate month /12)Add Amount A to Amount B

Cash flow amount = Amount B



Contract retention

If contract value > 0Contract retention = contract value * percentage contractretention / 100

If contract value = 0Contract retention = cash flow amount * percentage contract

retention / 100


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Retention calculation

If retention year = 1If financial year month > 3

Add retention value to current year cash flow

If financial year month < 4Add retention value and balance to next year cash flow

If retention year = 2If financial year month > 3

Add retention value to current year cash flow

If financial year month < 4Add retention value and balance to next year cash flowAdd retention amount and balance to current year + 2 cash flow


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Retention calculation(continue)If retention year = 3

Amount A = retention value / 24If financial year month = 3

Cash flow current + 1 = (retention value / 2) + balanceCash flow current + 2 = retention value + balance

If financial year month not = 3If financial year month > 3

Month A = 12 (financial year month 3)If financial year month < 4

Month A = 3 financial year month

Amount B = Amount A * Month AAdd Amount B to cash flow amount for Month AAdd 1 to current year

Add 12 to Month ACash flow latest year = Balance + Amount A * Month ACash flow latest year + 1 = Balance + Retention valueRepeat for each financial year

If year > current yearAdd previous year cash flow amount to latest year cash flow amount


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T-Value 2 (year) calculation

T-Value 2 (year) = number of days between cashflow start and end datesIf T-Value 2 (year) > Intersection

Amount A = T-Value 2 (year) IntersectionAmount B = (Slope 1) / (1 Intersection)Cash flow (year) = Amount A * (Slope Amount B) +Intersection + Balance

If T-Value 2 (year)


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CASH FLOWCALCULATIONS

Theoretical and Actual Cash flow


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Theoretical Cash flow

Contract days = number of days between start andend datesRepeat for each financial year

If T-Value (year) > IntersectionAmount A = T-Value (year) IntersectionAmount B = (Slope 1) / (1 Intersection)Amount C = Amount A * (Slope Amount B * Amount A) +Intersection

If T-Value (year)


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Calculated (Actual) Cash flow

Cash flow amounts for previous financial year alwaysequals actual expenditure for that year. Determine

balance of the cash flow amount by cash flowamount total previous expenditure

This is only applicable when actual expenditure exist and

construction is not completed (service status < 7A)


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Calculated (Actual) Cash flow continue

Retention greater than 0If 1st delivery actual or end date less than current financialyear

Add cash flow amount balance to cash flow latest financial yearOR

If 1st delivery projected or end date greater or equal tocurrent financial year or end date less than today

Add cash flow amount balance to cash flow current yearOR

If balance 1 less than=0Add retention value to cash flow amount

ORIf end date year greater than financial year

Add balance 1 to cash flow amountOR


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Retention > 0 (continue)If end month greater than 3

Month A = 15 end month

If end month less than 4Month A = 3 end month

Amount A = (Balance 1 / 12) * Month AAdd Amount A to cash flow amountAmount B = Balance 1 Amount A * Month AAdd Amount B to cash flow for next financial yearOR

Amount A = (cash flow amount (cash flow decreasepercentage / 100) * cash flow amountAmount B = cash flow amount Amount AIf Balance 1 greater than 0

Cash flow amount = expenditure current year + retention valueOR


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If retention value greater than> balance 1Repeat for each financial year

If T-Value (year) greater than IntersectionAmount A = T-Value (year) IntersectionAmount B = (slope 1) / (1 Intersection)Cash flow (year) = Amount A * (Slope Amount B) * Amount A) +Intersection + Balance

If T-Value (year) less or equal to IntersectionAmount A = Slope 1Amount B = Amount A / IntersectionCash flow (year) = T-Value (year) * (2.000000 Slope + Amount B * T-Value (year)) + Balance

If retention less or equal to Balance 1Do T-Value 2 (year) calculation

Amount A = (Cash flow latest financial year + totalexpenditure) ? 2Amount B = Amount A / Cash flow latest financial year

l l d ( l) h fl


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CF-Time = days between start and end dates / Amount BIf CF-Time + start date greater than end date

Balance 2 = Balance total expenditureDo T-Value 2 (year) calculation

If retention > 0

Do retention calculation


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Conclusion

To make changes to the formula you only need toadd additional parameters per Service typeThis cash flow can only be manipulated when actualamounts and dates exist

See Cashflow presentation to get an idea on theimpact of the parameters and dates on the system.