Accruals and Cash
Difference between Accruals and Cash, and Recommendations
Many functions in the projections part of the library have two modes of operation set by the ProjMode variable - accruals and cash, e.g. Con.

The difference is that whilst in accruals mode the function calculates how a rate of payment relates to a certain time period, in cash mode the function goes a stage further and decides how much of the payment is actually occurs during the time period.
• In Accruals mode functions therefore calculate how much of a payment period (usually a year) is contained within the time period you specify. This might be how much of a year, how many quarters, how many months etc. The daycount method, for specifying how to calculate the difference between two dates, is described by two optional variables DayCount and Periods. For more information see Using Daycount and Examples of DayCount.
• In Cash mode functions calculate how much of the payment actually occurs in the time period. To determine this, the function needs either an standard option for quarterly, monthly payments etc, or, because such standard options may be restrictive, you can specify your own timing of quarters in Periods. For more information see Using Daycount and Examples of DayCount.

Recommendations
• If you are using a function in accruals mode, then letting the function use the default DayCount will nearly always result in highly accurate results, and there is often no need to specify DayCount and Periods.
• If you are using a function in cash mode, specify your own annual sequence using a series of dates that you have somewhere in your spreadsheet. You can use the default (quarterly in advance) by omitting Periods altogether, but you will be more in control by specifying your own dates. You can also use the preset options for Periods and DayCount (see Using Daycount).
• For a large model, it is best to have at least two named global variables in the worksheet to use for DayCount and Periods. For more information and our recommendations on named variables, see Range Names and References

Business Functions Ltd, London, UK Website Design: Webpure