This is getting a little outside the scope of the course. I have provided a simple illustration of formulae in good faith (attached).

Thank you. The Timing of Revenue recognition is a common scenario in a number of industries / countries so I’m sure this will help many others

In a non-manufacturing situation where the driver for sales is simply orders would you build the order profile into the model or would you have that in a separate file and link - only bringing in the bottom line figure for each month to the general assumptions sheet

With the Timing set to Monthly - How would the formula change for calculating the closing accounts receivable?

ie days in period is for eg 31 not 365

The answer to the first is, it depends on how complicated it is.  There are pro's and con's.  If it's simple, I would probably build it in the same model as linking can cause version control issues or problems if people forget to update links to closed workbooks.

The second (about days in period) - the formula does not change: days in period is the days in period and that is used as the denominator. This was covered in the session as it was made clear you may have to use one of the other two alternatives in this instance (you actually asked a question about this before?). You cannot use the formula if days receivable / payable exceeds the number of days in the period.  Please refer to the course for further details.

Thanks the course doesn’t give the formulas for each scenario

what would the formula be for monthly?

if I were to switch it so that cash received was calculated rather the balancing figure 

what’s the most efficient way of writing the formula that gives say

cash received

mth 1 = 85% x opening debtors (OD)

mth 2 = 10% x OD + 85% * mth 1 debtors

mth 3 = 5% x OD + 10% x Mth1+ 85% x mth2

mth 4 = 5%xmth1 + 10%xmth2 + 85% x mth3

etc etc

Actually, the course does give this. You use the Second Monthly Example from the Working Capital Adjustments file.  You either use the Simple Grid Method (rows 23:41) or what's known as the Reverse Ticker Method (rows 44:51). I have put 85% / 10% / 5% into row 15, and you put your sales into row 13.  

If you want to extend past 12 periods (as this is for illustration), use the second method.  The formula uses INDEX so insert columns BEFORE the final column U, and then copy the formula across (before the insertion point out to the final column).  This will NOT work for the grid method (as you would need more rows too - this is perhaps easier to follow, but formulaically less efficient).