│ │ ║ Recognize percentage of payment owed to date
│ │ ║
│ │ ║ ╒ If unearned balance > 0
│ │ ║ │ Dr Liabilities, Cr Income with draw down amount
│ │ ║ │ Reduce deferred payment balance by draw down amount
│ │ ║ └ End If
│ │ ║
│ │ ╚ End For
│ │
│ │ ╔ For Each Unrecognized Dues Payment │ │ ║ Recognize percentage of deferred payment owed to date │ │ ║ │ │ ║ ╒ If unearned balance > 0 │ │ ║ │ Dr Liabilities, Cr Income with draw down amount │ │ ║ │ Reduce deferred payment balance by amount draw down │ │ ║ │ amount │ │ ║ └ End If │ │ ║ │ │ ╚ End For
│ │
│ └
│
│ ┌ * Projected Dues Cash Forecast Procedure
│ │
│ │ ┌ * Accumulate actual history on an ongoing basis │ │ │ │ │ │ ╔ For Each dues rate category │ │ │ ║ │ │ │ ║ Accumulate Cancellations (total dollars) for running │ │ │ ║ 12 months │ │ │ ║ Accumulate Additions (total dollars) for running │ │ │ ║ 12 months │ │ │ ║ │ │ │ ╚ End For │ │ │ │ │ │ ╔ For Each latest 30-60-90 day period │ │ │ ║ │ │ │ ║ ╔ For all dues rate categories (aggregate) │ │ │ ║ ║ Accumulate actual payments made within period │ │ │ ║ ║ Accumulate payments due within period │ │ │ ║ ║ Drop oldest 30 day's data │ │ │ ║ ║ Compute payments as a percentage of payments due │ │ │ ║ ╚ End For │ │ │ ║ │ │ │ ╚ End For │ │ │ │ │ └
│ │
│ │ ┌ * Prepare projected dues cash flow (on demand) │ │ │ │ │ │ ┌ * Compute 30-60-90 day payment profile │ │ │ │ │ │ │ │ * Profile is the expected percentage of payments due that │ │ │ │ * will be received within the period. │ │ │ │ │ │ │ │ ╔ For Each period (30-60-90 day) │ │ │ │ ║ │ │ │ │ ║ Compute expotentially smoothed forecast │ │ │ │ ║ new forecast = old forecast + alpha (actual - │ │ │ │ ║ old forecast) │ │ │ │ ║ where: │ │ │ │ ║ alpha is a percentage (user changeable) │ │ │ │ ║ actual is percentage of payments received │ │ │ │ ║ within the period │ │ │ │ ║ (actual - old forecast) is forecast error │ │ │ │ ║ │ │ │ │ ╚ End For │ │ │ │ │ │ │ └ │ │ │ │ │ │ ┌ * Compute 12 month forecase │ │ │ │ │ │ │ │ ╔ For Each month beginning with current month │ │ │ │ ║ Compute projected dues │ │ │ │ ║ Subtract prior year's corresponding cancellations │ │ │ │ ║ Add prior year's corresponding additions │ │ │ │ ║ Apply payment profile (i.e., compute following 3 │ │ │ │ ║ month's) │ │ │ │ ╚ End For │ │ │ │ │ │ │ │ Sum projected cash flows by month │ │ │ └ │ │ │ │ │ └