Calculation Parameters

Calculation Parameters documents are used to manage estimated escalation, product equivalencies for BOE conversion, and discount settings. You must link a Calculation Parameters document to a hierarchy before adding projects. For information on how to create and manage these documents, see Create a Calculation Parameters document. The Calculation Parameters window includes four tabs which are explained below.

Escalation Arrays

The Escalation Arrays tab contains escalation coefficients for different years. For information about how escalated values are calculated, see Inflation and escalation.

Escalation categories are defined when the application is set up. They are specified for individual variables (see Variable Definitions), and thus the list of categories on this tab may differ depending on your configuration. The standard categories include, for example, Capex Escalation, Production Allowance Escalation and Opex Escalation. If a category is no longer in use, it can be removed by editing a variable's settings in the Variable Definitions window.

You can specify the rates at different levels by changing the periodicity of the document on the toolbar. If you check the Yearly Escalation box, escalation rates will be applied on the yearly basis regardless of the periodicity in which they were entered.

The date in the Start Year field is the first date in the document.

To enter or edit values, double-click on a cell; the cell background will change and the cursor will appear. To copy values, right-click on a cell and use the context menu which contains three options: Copy, Paste and Copy Down. You can copy numbers from other applications, such as Microsoft Excel.

If you double-click on a cell twice, the calculator will be displayed, which you can use to obtain values without having to open another application.

Product Equivalencies

The Product Equivalencies tab contains coefficients for converting product amounts into BOE (barrel of oil equivalent). The list of products is set up in the global application settings (see Database Setup).

Note: As calculations in CASH are performed in the Imperial unit system, the equivalency factor must be specified in Imperial units. If you are using another unit system, you need to convert to the Imperial units prior to calculating the equivalency factor. For example, a gas equivalency factor of 6 represents 6 MCF per barrel; if your values are in cubic meters, you need to convert them to MCF per barrel.

Field	Description
Product	Name of the product. The list of product names cannot be edited in this tab; to make changes to it, go to Tools > Options > Database Setup > Product Categories.
Equivalency Factor	Enter conversion coefficients.

Discount and Currency Settings

The Discount and Currency Settings tab allows you to set a discount date, method and five rates to apply when CASH performs calculations.

Field	Description
Discount Date	Enter the date when the discount will start.
Discount Method	Select the discount method: AnnualEnd: the discount is applied at the end of the year; AnnualMid: the discount is applied in the middle of the year; AnnualStart: the discount is applied at the beginning of the year; Monthly: the discount is applied on the monthly basis (the monthly discount rate is based on the annual discount rate entered in the Discount Rates section).
Discount Rates	Specify discount rates. You can specify 5 different rates and use them for comparison.
Scalar Currency Value Conversion Settings	This option is used only if you have currency variables that are scalar variables. It determines which exchange rate will be used when you convert values from one currency to another. Default Currency Settings: If you select this option, conversion settings will be taken from the Global Options (see Database Setup). Convert at document start date: In this case, the project start date will be used as the exchange rate date. Convert at period prior to document start date: If you select this option, then the exchange rate date will be calculated as the project start date minus one year. Convert at: This option allows you to specify the exact date to be used to retrieve the currency exchange rate.

Comment

The Comment tab contains a rich text editor. Here you can enter comments, for example an explanation of escalation settings and their expected effect on the calculation results.