Overview

This document describes the cash flow functionality. It first describes the settings associated with cash flow and then describes how a cash flow forecast can be generated and what options a cash flow forecast offers.

Settings

Chart of Cash Flow Accounts

In order for Cash Flow Worksheet Forecasts to work properly, a the Chart of Cash Flow Accounts must be adjusted.

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Cash Flow Manual Expenses/Income

Not all income/expenses will be reflected in the system at the time the cash flow forecast is created. Use the Cash Flow Manual Expenses and Cash Flow Manual Revenues functionalities for anticipated income/expenses in the future. These can be set up to expect, for example, rent in a certain amount and certain currency every 15th of the month.

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Functionality description

Business Central uses the so-called Cash Flow Forecasts for cash flow planning. There can be several of these in the system. They can differ in currencies (if the Cash Flow by currency extension is installed) or they can be different with one plan being in the contractual payment terms and the other in the cash flow terms.

Create a Cash Flow Forecast

Cash flow forecast can be found through the search function. New cash flow forecast can be then created using the action +New, if there is no cash flow plan from the past that can be used.

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• Number - Must be unique and should define what the plan will be used for.

• Description - Allows a more detailed description of the use of the planProvides an opportunity to describe the plan's intended use.

• Description 2 - Usually is not filled in, but Provides a space for additional information if the initial description is not sufficient, it is possible to enter the rest in description 2insufficient.

• Consider discount - If this checkbox is ticked, By switching this toggle button on the system will propose receivables/payables reduced by a discount to the plan (if there is still a possibility to meet the conditions of the discount at the given time).

• Consider Pmt. Disc. Tol. Date - Specifies if the payment discount tolerance date is considered when the cash flow date is calculated. If the check box is clearedtoggle button is switched off, the due date or payment discount date from the customer and vendor ledger entries and the sales order or purchase order are used.

• Consider Pmt. Tol. Amount - Specifies if the payment tolerance amounts from the posted customer and vendor ledger entries are used in the cash flow forecast. If the check box is clearedtoggle button is switched on, the amount without any payment tolerance amount from the customer and vendor ledger entries are used.

• Consider CF Payment Terms - Specifies if you want to use cash flow payment terms for cash flow forecast. If this field is ticked, the receivables/payables do not consider the calculated due date but the cash flow due date determined by the cash flow payment terms on the customer/vendor card.

• Manual payments from and Manual payments to - Together these fields specify the interval from which the cash flow plan should include manual receipts/expenses.

• Move overdue cash flow dates to work date - If When this checkbox is tickedthe toggle button is switched on, the system will suggest that overdue items will be paid on the date set in BC as the current work date (if this date has not been manipulated, it will be the current date on which the forecast was generated).

• Currency code - Specifies that we only want to include items in USD, for example.

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The Cash Flow Forecast can look like this:

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Creating cash flow forecast items

Once the cash flow forecast is set up as required, it is possible to let the system suggest the required entries. This can be done from the cash flow forecast card using Process → Cash Flow Workbook.

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Cash flow analysis

Once the entries have been successfully recorded, the entries are logged into the cash flow plan statistics, which is available on the cash flow forecast card under the icon.

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