How to model provisions / decomissioning?

In this article you will learn how to model provisions.

  1. 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.

  1. In case of a provision you have to define the payment day.
  1. You have the option to work with relative date relations. For more information to relative date relations click here.
data relations

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.

Profit and Loss

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.