Monitoring Future Expenses to vendors in Construction

Vendors - suppliers and Vendors - subcontractors play a major role in successful execution of a construction project. All vendors will have a credit period of certain time-i.e 30 to 45 days. Builders have to settle the amount to vendors with the agreed timeline. Builder will be working with multiple suppliers and multiple subcontractors. Tracking the outstanding amount for each vendor itself is a tough job. Builder has to know this on priority , as this will affect his project execution in multiple ways. Future expense is nothing but the outstanding amount to be paid for the vendors for each upcoming month/week for a certain period - may be for 6 months. This is very much needed to understand the account payable by the builder. Builder can understand how much fund he has to arrange the money, based on the future expenses. This gives visibility on the required amount to be arranged for settling vendor expenses.

Future Expense for next 2 months = Outstanding amount(Vendor1+Vendor2+...VendorN) for (current month+1)

+

Outstanding amount(Vendor1+Vendor2+...VendorN) for (current month+2)