Current Assets
What are Current Assets in Model Reef
Current Assets typically include:
Cash
Calculated from the Cashflow Statement.
Never entered directly except as an opening balance.
Accounts Receivable (AR)
Amounts owed by customers due to revenue delays.
Other short term receivables or prepayments
If modelled explicitly with Asset type variables and short term categories.
Exact line labels depend on your category design, but the behaviour is consistent.
How Accounts Receivable is generated
Accounts Receivable comes from Revenue variables with payment delays.
Rules:
Revenue accrues in the P&L when it is earned.
If a delay or payment term is applied, cash is collected later than accrual.
The difference between cumulative revenue and cumulative cash receipts becomes the AR balance.
When cash is collected, AR decreases and cash increases.
You do not need to calculate AR manually. The engine derives it from revenue and cash timing.
Cash as a derived asset
Cash is always a derived balance in Model Reef.
For each period:
Closing Cash = Opening Cash + Net cashflowWhere Net cashflow is taken from the Cashflow Statement, which itself is generated from all variable cash movements.
You typically specify an opening cash balance once, then allow the model to compute future cash levels.
Current Assets and working capital
Current Assets, particularly AR and any other short term items, are a core part of working capital.
An increase in AR reduces cash relative to revenue.
A decrease in AR increases cash as customers catch up on payments.
In the Cash Waterfall, the Change in net working capital line summarises movements in AR together with Accounts Payable and other timing related balances.
Current Assets in scenarios and branches
In scenarios:
Revenue patterns and delays can change, leading to different AR and cash trajectories.
You can test the impact of slower or faster collections on liquidity.
Across branches:
Each branch has its own AR and cash components.
Consolidated Current Assets are the sum across enabled branches, giving group level visibility.
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