The 60-second financial model

Think of Constructable financials as one connected flow:

Cost structure → Prime Contract and Commitments → SOVs → Change Events and Orders → Billing Periods → Invoices and Pay Applications → Payments and Receipts → Budget and Reports

• Cost codes, cost types, revenue codes, and subprojects define where money belongs.
• The Prime Contract represents owner-side revenue.
• Commitments and Purchase Orders represent vendor-side costs.
• Each contract has a Schedule of Values (SOV).
• Change Events organize scope changes; COs and PCOs change vendor and owner contracts.
• Billing Periods organize invoice cycles.
• An Invoice records progress against an SOV; its PDF is a Payment Application.
• Payments apply cash to approved invoices.
• Receipts capture costs that are not invoiced through a Commitment.
• The Budget Report brings revenue, budget, committed cost, actual cost, and forecast together.

Constructable does not currently provide a separate cash-flow forecast, sales/use tax workflow, or accounting-period module. Use Billing Periods for invoice cycles.

Recurring example

Throughout these articles, imagine a project with:

• A $10 million Prime Contract with the owner
• A $1 million concrete Commitment
• An SOV that separates foundations, slabs, and walls
• A Change Event for added foundations
• A vendor CO and matching PCO
• A monthly subcontractor invoice and Owner invoice
• A payment against the approved vendor invoice
• A fuel Receipt outside the concrete Commitment

The same example shows how one change moves through contracts, billing, actual costs, and the Budget Report.