In this article you will learn how to model provisions.
- Click in the edit mode of the concerned Opex Item on the Input field « Method of payment ». You will have the following 4 possibilities:
- Recurring Payment
- Recurring Pre Payment
- One-off Pre Payment
- Provision
Would you like to get some more information about the method of payment « One-off Pre Payment » just click here and for more information about « Recurring Provision » here.
- In case of a provision you have to define the payment day.

- You have the option to work with relative date relations. For more information to relative date relations click here.

Example: In our case, we model provisions for decommissioning costs, which are paid at the end of the investment period. The estimated costs are 100,000 EUR.

Graphically provisions look as follows:
Profit & loss: The amount will be charged on an equal basis over the term.

Castflow: The total Cash Out will be at the end of the lifetime in 2014.

Balancesheet: The provision is continually built up in the balance sheet and released at the end of the term.
