The 60-second financial model

It helps to 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 identify where money belongs.
• The Prime Contract tracks the project's contract and revenue with the owner.
• Commitments and Purchase Orders track agreed costs with subcontractors and other vendors.
• Each contract has a Schedule of Values (SOV).
• Change Events organize scope changes; COs update vendor contracts, while PCOs update the Prime Contract.
• 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

We use this same example throughout the guide so you can see how one change moves through contracts, billing, actual costs, and the Budget Report.