Entering Delays

This article explains how to enter delays in Model Reef.

You will learn:

  • How to specify delays using days and months.

  • How delays relate to payment terms.

  • How the timing engine uses delays to position cashflows.

Delays are the core input for shifting cash relative to accrual.

1

Delay fields in the Timing modal

Delay inputs appear in the Payment terms or delay section of the Timing modal.

You can usually specify delays as:

  • A number of days.

  • A number of months.

  • In some cases, using a small set of quick presets (for example 0 days, 30 days, 60 days).

Internally, the engine converts these into offsets against the model's period structure.

2

Day based delays

When you enter a day based delay, for example 30 days:

  • In a monthly model, the engine typically assigns the cashflow to the following month.

  • In a weekly or daily model, it positions the cashflow on the correct date and then into the appropriate period.

Longer delays that cross multiple periods are allocated accordingly, for example a 75 day delay in a monthly model may affect two different months.

3

Month based delays

When you enter a month based delay, for example 1 month:

  • Cash occurs exactly the specified number of periods after the accrual period.

  • This is easier to reason about when contracts explicitly define terms in months.

Month based delays are directly mapped to model periods.

4

Delays and receivables or payables

Delays automatically create timing differences:

  • For revenue, a delay creates Accounts Receivable.

  • For costs, a delay creates Accounts Payable or staff or tax payables.

As cash is received or paid, those balances unwind.

The Cash Waterfall bridges P&L and cashflows via the change in working capital driven by these delays.

5

Validating delay settings

To validate delay entries:

  • Use the Timing preview to see how cash is shifted relative to accrual.

  • Look at working capital lines in the Cashflow Waterfall.

  • Check that receivable and payable balances look realistic for the business.

If working capital feels too large or too small, revisit delays and payment terms.


Last updated