FIN-E1 - A profitable order leaves a day-7 cash gap

• Situation: An operating account establishes that an order is feasible and brings 1,200 on day 28 against incremental payments of 440 on day 0 and 100 on day 7. The whole-business baseline, after all other flows, has cash of 500 at each relevant date.
• Question: Which available arrangement funds the order while preserving the required cash?
• First useful result or blocker: The liquidity calculation finds a day-7 gap of 40 before any positive reserve. A response is usable only if its money arrives in time and its later payments remain fundable.
• Start with: FIN.2 for the dated cash account, then FIN.3 for the customer-advance alternative or FIN.10 for financing terms. Use FIN.15 for the selected permitted action.
• Stop or return: Complete the comparison with a supported choice of an arrangement whose receipts are available in time and whose repayments are fundable, or identify the specific missing condition. Return when collection, reserve, fees, draw access or repayment changes.

The order requires 26–29 rig-hours. The supplied operating plan has 20 usable hours plus an available ten-hour block costing 240. Materials cost 200 and supplier service costs 100. Materials and the block require 440 on day 0; the supplier’s 100 is due on day 7. Those adequate operating and accounting results give the 540 of incremental payments and a favorable contribution of 660. Finance can use them directly.

After paying 440, cash is 60. The day-7 payment of 100 creates the gap of 40. A committed facility can supply up to 80 before that payment; it withholds a fee of 3 and requires principal plus interest of 2 on day 28. A gross draw of 43 supplies net cash 40. Alternatively, the customer has agreed to pay 96 on day 6 against 100 of the invoice, leaving 1,100 on day 28.

On these conditions, the advance provides one more unit of gain and a larger buffer. Without the customer’s agreement, the proposed advance is not available to pay the day-7 obligation. If a positive reserve is required, the zero-cash facility row must change. If collection moves to day 40 but the loan remains due on day 28, its 45 repayment becomes a new gap. A positive total contribution does not establish an extension.

FIN.16 uses the funded alternatives and their operating conditions to return the advance recommendation, or conditional advice if agreement or draw access is missing. Treasury then uses FIN.15 under the existing authority to perform the selected action and reconcile what actually settled. If the collection expectation moves to day 40, FIN.17 updates the liquidity projection and returns the unfunded day-28 repayment to FIN.10. The operating contribution can remain 660 on unchanged operating grounds, but the earlier net gain of 655 must be recalculated with a feasible repayment arrangement and its cost.