Time & Periodicity Basics
Time is at the heart of every Model Reef model. This article explains how model timelines work and how they affect your statements.
You will learn about:
Model start and end dates.
Base frequency and reporting views.
Occurrence timing versus cash timing.
Delays and payment terms.
Changing the timeline without rebuilding the model.
Model start date and end date
When you create a model you choose:
A start date for the model.
An end date or duration.
A base frequency such as monthly or weekly.
Model Reef then creates a grid of periods from the start to the end at the chosen frequency. Every variable lives on this grid.
You can change the start date and end date later. When you do, Model Reef:
Shifts or extends the period grid.
Recomputes all variables over the new timeline.
Recalculates P&L, Balance Sheet, Cashflow and valuation.
You do not need to rebuild formulas or re copy logic to handle a different horizon.
Base frequency versus reporting frequency
A model has a single base frequency, for example:
Monthly for most operating models.
Weekly or daily for very granular cash or working capital views.
Quarterly or annual for high level planning.
The base frequency is the resolution at which the engine calculates accruals, payables, receivables, interest, tax and cash.
On top of this base frequency, you can choose different reporting frequencies, such as:
Monthly view.
Quarterly view.
Semi annual view.
Annual or financial year view.
Custom date ranges.
Reporting frequency only changes how values are aggregated and displayed. It does not change the underlying calculation engine.
Occurrence timing versus cash timing
Every variable has two key time dimensions.
Occurrence timing
Occurrence timing determines when the item hits the P&L.
For example:
Revenue is recorded when the service is delivered or the goods are provided.
Rent is recorded in the months it covers.
Depreciation is recorded in each period of the asset life.
Model Reef uses your variable settings for start date, end date, frequency and schedule to decide occurrence timing.
Cash timing
Cash timing determines when money actually moves.
It is controlled by:
Delay settings such as 0 days, 30 days, 60 days, or a number of periods.
Payment schedules where you split amounts over several periods.
Examples:
A sale in January with 30 day terms might be paid in February.
A supplier bill in March with 45 day terms might be paid in April or May.
A deposit is paid at booking, with the balance close to the event date.
Model Reef keeps accrual and cash timing separate and reconciles them through the Balance Sheet.
How timing affects the statements
The timing engine ensures consistent behaviour across all statements.
Profit and Loss
Shows accruals only.
Uses occurrence timing for revenue and expenses.
Ignores when cash moves.
For example, a January sale on 30 day terms appears in January revenue, even if cash arrives in February.
Balance Sheet
Stores the timing differences between accruals and cash.
Creates Accounts Receivable when revenue is earned but cash is not yet received.
Creates Accounts Payable and other payables when costs are incurred but not yet paid.
Tracks asset values, loan balances, tax and equity.
Cashflow Statement
Shows cash movements only.
Uses cash timing and delays to decide when cash inflows and outflows occur.
Splits cash movements into operating, investing and financing sections.
Cashflow Waterfall
Starts from performance measures such as EBITDA.
Adjusts for changes in working capital and capex.
Includes debt, tax, equity and dividends.
Reconciles to the same net cash movement as the Cashflow Statement.
All four statements are generated from the same underlying timing rules and values.
Delays and payment terms
Delays and payment terms are how you tell Model Reef about real world cash behaviour.
Examples:
Customers pay 30 days after invoice.
Rent is paid monthly in advance.
Staff are paid fortnightly with a short lag.
Tax is paid quarterly in arrears.
Loan interest is paid quarterly, principal annually.
In each variable you can set:
Delay - for example 0, 30, 60 or 90 days, or a number of periods.
Frequency or schedule - for example monthly, quarterly, or specific dates.
Model Reef then:
Records the amount in P&L when it occurs.
Creates receivables or payables on the Balance Sheet until cash moves.
Books the cashflow in the period the delay expires or the schedule says to pay.
Getting timing and delays right is essential for any cash focussed use case.
Changing the timeline later
Real models evolve. You may need to:
Extend the horizon to add more years.
Bring the start date forward to drop old history.
Switch from monthly to quarterly or the other way around.
Change the financial year end.
In Model Reef you can change:
Model start and end dates.
Base frequency (subject to practical constraints).
Reporting views and financial year settings.
The platform recalculates all variables and statements automatically. You do not have to rebuild anything by hand.
When you make structural time changes, it is good practice to:
Check a sample of key variables across the new horizon.
Review opening balances and historical imported data.
Confirm that dashboards and reports use the intended reporting view.
Practical examples
A few simple patterns:
Subscription business
Revenue occurs monthly when service is delivered.
Cash is received monthly in advance or in arrears depending on contract.
Delay settings differentiate prepaid and post paid contracts.
Project based business
Delivery costs and staff time accrue as work progresses.
Invoices are raised on milestones with partial payments.
Delays represent payment terms on each milestone.
Retail business
Most revenue is cash at point of sale so delay is near zero.
Card settlement delays can be modelled as a small receivable delay.
Supplier terms create payables that smooth cash outflows relative to COGS.
All of these behaviours can be modelled by adjusting timing and delay settings on variables.
Where to go next
Key Entities - Variables, Drivers, Branches — to see how timing works at variable level.
Importing and Data Inputs — to understand how historical data is aligned to the model timeline.
The Timing Engine article in the Syntax section — for technical details.
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