| | 5.3.9.4 M4 Cash Flow Procedure | |
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| Cash Flow: | | Cash flow is an executive automated service to show by calendar month the revenue paid to the business and revenue assigned as staff commissions. | | For each historical month, the cash flow is an actual statement of revenue to the business and revenue allocated to staff accounts. | | For each future month, the cash flow is a projection of estimated commissions from current and accepted contracts. Cash flow is not predicted beyond a current or accepted contract end date. |
| Glossary: | | EAQ Estimated Annual Consumption by the client in units as kWh. | | EAC Estimated Annual Commission to the business in decimal pounds. | | EAS Estimated Annual Spend by the client in decimal pounds. | | EAV Estimated Annual Saving by the client in decimal pounts. |
| Billing: | | Billing events are scheduled for the life of brokerage contracts and for up to three years for provider contracts. Each billing event will invoice for one or more contracts - a billing event cannot invoice for an amount that has not been contracted. | | A provider billing event may involve a data sheet of many meter numbers identifying current energy contracts that are to be billed. A single invoiced payment is fragmented into one or more consumption-commission records that relate to one current contract and one energy service (meter). |
| Commission: | | The provider data sheet of one or more metered consumption-commission data is imported with a commission record added for each row. The amount of commission for a single row is associated with one meter and one current contract and one client. The staff commissions specified at the client level are replicated to the commission record and the staff commission calculated based on the applicable percentage. | | Staff commission in any month is simply the accumulation of all commission records for that persons name. Company revenue is simply the accumulation of all commission records in any calendar month. No manual calculations are needed and every monthly commission can be verified against every detailed commission record that has been imported. | | All commission records are automatically created and do not need to be changed - errors have been minimised. Commission data is encrypted and replicated to many physical locations to ensure that it cannot be lost, corrupted or stolen. |
| Estimated Annual Commission: | | For every current and accepted contract, the commission rate will be zero or a pence-per-unit fraction. The estimated annual consumption is calculated based on the estimated or actual units. The estimated annual spend and estimated annual saving are calculated where the rates are complete and correct. | | Future cash flow predictions are one twelfth of the estimated annual commission - this extends for the duration of the contract. Where the EAQ has not been provided or the commission rate has not been provided then the estimated annual commission is zero. Where the estimated annual commission is zero then staff commission forecasts are zero. |
| Brokerage: | | A brokerage contract is needed to authorize the client to be billed as either:- | | (1) Fixed monthly or quarterly fee for bill validation. | | (2) Percent of saving paid on contract start for whole contract duration or/and on the annual anniversary. | | Each brokerage contract will have a set of scheduled billing events for the duration of the contract. Each scheduled billing event will have one commission record to identify the actual or forecast commissions to be paid to the company and to assigned staff. |
| Document Control: | | 1. Document Title: M4 Cash Flow Procedure. | | 3. Keywords: M4 Cash Flow Procedure. | | 4. Description: M4 Cash Flow Procedure. | | 5. Privacy: Public education service as a benefit to humanity. | | 6. Issued: 11 Jun 2018. | | 7. Edition: 1.3. |
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