B-able Functional Documentation

1. Introduction & Concept

B-able is a strategic tool designed to find the best financial solution to achieve efficiency and fulfill all business objectives. Unlike traditional budgeting tools that simply project results, B-able establishes precise Financial Limits (boundaries) within which decision-makers must maneuver.

The "Reverse" Logic

Most models ask: "If I sell X, how much money will I make?"
B-able asks: "Given my structure and efficiency, how much MUST I sell to survive?"

graph LR
    subgraph "Traditional Approach"
        A[Sales Forecast] --> B[Calculate Costs]
        B --> C[Resulting Cash Flow]
    end
    
    subgraph "B-able Approach"
        D[Structure & Efficiency] --> E[Calculate Limits]
        E --> F[Necessary Sales]
        F --> G{Is it Viable?}
    end
    style F fill:#ff9,stroke:#f66,stroke-width:2px
                    

2. Getting Started

B-able is a cloud-based application accessible from any modern web browser. Here's how to get started:

Access Levels

Registration Process

1. 1 Click "Login / Register" on the top navigation bar.
2. 2 Fill in your name, email, and choose a password.
3. 3 Wait for admin approval (you'll be notified by email).
4. 4 Once approved, log in to access all features.

3. Data Entry & Adjustments

The quality of the solution depends entirely on the accuracy of the input data. A critical distinction in B-able is between Accounting Balance and Adjusted Balance.

The "Adjusted Value" Concept

When entering Opening Working Capital, you must distinguish between what is on the books and what is real cash potential.

graph TD
    Book[Accounting Balance] -->|Subtract| BadDebt[Bad Debts]
    Book -->|Subtract| Idle[Idle/Obsolete Inventory]
    Book -->|Subtract| Spare[Spare Parts / Internal Use]
    Book -->|Subtract| Prepaid[Prepaid Expenses]
    
    BadDebt --> Real[Adjusted Value]
    Idle --> Real
    Spare --> Real
    Prepaid --> Real
    
    Real -->|Input to| Bable[B-able Engine]
    style Real fill:#9f9,stroke:#333,stroke-width:2px
                    

Input Categories

• General Information: Company name, scenario, currency.
• Opening Working Capital: Current assets and liabilities (both Accounting and Adjusted values).
• Historical Results: Last period's sales, costs, and duration.
• Expected Fixed Costs: Up to 12 customizable expense lines plus a global adjustment.
• Other Inflows: Capital expansions, Loans, Subsidies, Financial Income.
• Projected Operations: Expected sales, variable costs, depreciation.
• Projected Outflows: Income Taxes, Dividends, New Investments, Debt Repayment.
• Achievable Targets: Gross Margin (%) and Working Capital Turnover (Days).

4. Validation & Cycles

Before calculating, B-able validates your operational targets against historical performance. It calculates the Cash Conversion Cycle.

The Cash Conversion Cycle

This represents the time lag between paying for materials and collecting cash from sales.

graph LR
    Buy[Purchase Materials / Goods for Sale] -->|Days Payable| Pay(Payment Outflow)
    Buy -->|Days Inventory| Sell(Sale of Goods)
    Sell -->|DSO| Collect(Cash Inflow)
    
    Pay -->|Cash Gap| Collect
    
    style Pay fill:#f99,stroke:#333
    style Collect fill:#9f9,stroke:#333
                    

Goal: Shorten the gap between Payment and Collection.

5. The Solution: B-Ratios

The application assesses the financial quality of your forecast using two key coefficients.

6. Required Financial Limits

This is the most unique output of B-able. It defines the "Safe Zone" for your company.

The Consistency Check

The model compares Necessary Sales (what you need) vs. Expected Sales (what you can sell).

graph TD
    subgraph safe [" "]
        direction TB
        SAFE_TITLE[The Safe Zone]
        L1[Max Purchases]
        L2[Max Payments to Suppliers]
        L3[Min Required Collections]
        L4[Dividends and other RFL]
    end
    
    subgraph danger [" "]
        direction TB
        DANGER_TITLE[The Danger Zone]
        O1[Over-purchasing]
        O2[Liquidity Crisis]
        O3[Cash Shortfall]
    end
    
    L1 -->|Exceeded| O1
    L2 -->|Exceeded| O2
    L3 -->|Missed| O3
    L4 -->|Exceeded / Missed| O3
    
    style SAFE_TITLE fill:#fff,stroke:#fff,color:#28a745,font-weight:bold
    style DANGER_TITLE fill:#fff,stroke:#fff,color:#dc3545,font-weight:bold
    style L1 fill:#d4edda,stroke:#28a745
    style L2 fill:#d4edda,stroke:#28a745
    style L3 fill:#d4edda,stroke:#28a745
    style L4 fill:#d4edda,stroke:#28a745
    style O1 fill:#f8d7da,stroke:#dc3545
    style O2 fill:#f8d7da,stroke:#dc3545
    style O3 fill:#f8d7da,stroke:#dc3545
                    

To remain viable, the company MUST NEVER breach these calculated limits; to ignore or violate them is the most transited entrance to the financial hell:

• Maximum Purchases: The absolute limit on raw materials / goods for sale buying.
• Maximum Payments: The exact amount of cash you can afford to pay out to suppliers.
• Required Collections: The minimum cash inflow needed from customers.

7. The Optimizer

When the projection is inconsistent (Necessary Sales ≠ Expected Sales), use the Optimizer to close the gap.

How to use it:

1. 1 Identify the gap (e.g., Necessary Sales are 500K higher than Expected).
2. 2 Click "Go to Optimizer" from the results page.
3. 3 Select a variable to adjust (e.g., "I want to find the exact Dividend I can pay").
4. 4 Click "🪄 Auto-Solve" next to that variable.
5. 5 The system calculates the exact value that makes Necessary Sales = Expected Sales.
6. 6 Review all adjusted variables (shown with Modified badge and yellow background).
7. 7 Click "Commit & Save Scenario" to save your work.

Saving Scenarios

You can save up to 5 different scenarios per account. Each scenario stores:

• Initial Values: The original values before optimization.
• Optimized Values: The adjusted values that achieve consistency.

Access your saved scenarios from the "📂 My Scenarios" link to compare, reload, or delete them.

Mathematical Method

Behind the scenes, the Optimizer uses the Secant Method, a numerical root-finding algorithm that converges rapidly to the optimal value.

graph LR
    A[Start] --> B{Gap Exists?}
    B -- Yes --> C[Secant Method Iteration]
    C --> D[Calculate New Value]
    D --> E[Check Gap]
    E -- Gap > 1 --> C
    E -- Gap ≈ 0 --> F[Optimal Solution Found]
    B -- No --> F
                    

8. The Complete B-able Workflow

This diagram summarizes the entire B-able process from data entry to achieving a viable financial solution.

Process Overview

flowchart TD
    A["📊 Enter Initial Data"] --> B["⚙️ Calculate B1 & B2"]
    B --> C{"Necessary Sales = Expected Sales?"}
    C -- "✅ Yes: Consistent" --> D["📋 View Required Financial Limits"]
    C -- "❌ No: Gap Exists" --> E["🔧 Go to Optimizer"]
    E --> F["Adjust Variables"]
    F --> G["Recalculate"]
    G --> C
    D --> H["🎯 Implement Limits by Department"]
    
    style A fill:#e3f2fd
    style D fill:#d4edda
    style H fill:#d4edda
    style E fill:#fff3cd
                    

Required Financial Limits by Department

Once consistency is achieved, B-able provides specific limits that each department must respect to maintain liquidity:

flowchart LR
    subgraph PURCHASING["🏭 Purchasing / Logistics"]
        P1["Max Purchases"]
        P2["Max Payments to Suppliers"]
    end
    
    subgraph SALES["💼 Sales / Commercial"]
        S1["Min Required Collections"]
        S2["Min Sales Volume"]
    end
    
    subgraph FINANCE["📈 Finance / Management"]
        F1["Max Dividends and other inflows / outflows"]
        F2["Cash Flow Monitoring"]
    end
    
    CENTER(("💰 Company Liquidity")) --> PURCHASING
    CENTER --> SALES
    CENTER --> FINANCE
    
    style CENTER fill:#0056b3,color:#fff
    style PURCHASING fill:#e8f5e9
    style SALES fill:#fff8e1
    style FINANCE fill:#e3f2fd
                    

9. Saving Your Work

B-able automatically stores your work in the cloud so you never lose your progress.

Session vs. Saved Data

How to Save

1. Fill in or modify the input form.
2. Click "💾 Save Session".
3. Your inputs are now stored in the cloud.

Loading Your Data

When you log in, if you have saved data, it will be automatically loaded. You'll see a message: "📂 Data Loaded: Your saved values have been restored."

Restableciendo a Valores por Defecto

• 🔄 Usar Predeterminados: Carga temporalmente los valores de ejemplo por defecto (tus datos guardados NO se borran).
• 🗑️ Borrar Guardado: Elimina permanentemente tus datos guardados de la nube.

Escenarios Guardados (Optimizador)

Además de guardar tu formulario principal, puedes guardar escenarios de optimización:

• Cada escenario captura tanto tus entradas originales como los valores optimizados.
• Puedes guardar hasta 5 escenarios por cuenta.
• Accede a ellos desde "📂 Mis Escenarios" para recargar, comparar o eliminar.