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 to work properly, a Chart of Cash Flow Accounts must be adjusted.

The individual lines of this chart of cash flow accounts identify the categories that the cash flow worksheet will be able to suggest. The accounts receivable tab, for example, then determines whether the movement in accounts receivable should be generated from specific financial accounts or from customer entries.

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.

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.

The following fields can be set for a new forecast:

• 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 plan.

• Description 2 - Usually is not filled in, but if the description is not sufficient, it is possible to enter the rest in description 2.

• Consider discount - If this checkbox is ticked, 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 cleared, 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 cleared, 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 this checkbox is ticked, 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.

The Cash Flow Forecast can look like this:

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.

In the worksheet that opens, click on Process → Suggest Worksheet Lines OP.

After choosing the action, it is necessary to select which categories the system should include in the forecast. For example, only accounts receivable, accounts payable ( customer/vendor entries), and liquid funds. Or on the contrary, it may be desirable to include orders that have not yet been posted...

Once the action is confirmed, the system will suggest cash flow lines that belong to the selected categories.

Once the rows are reviewed, they need to be registered, which can be done in the Process section.

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.

Individual data values are clickable to see more detail for a given category.

When the field value is changed, the amounts are recalculated.

The second possible analysis of the recorded cash flow forecast entries is the CF availability by periods available from the cash flow forecast card.

On the page that appears, you can set:

• View by - specifies the time interval after which the cash flow is analyzed (month, day...)

• View as - offers the possibility to monitor Balance at Date according to the selected interval or the Net Change in selected intervals

• Amounts in currency - allows to set whether we want to see the total amounts in the currency of the cash flow forecast or to have the system convert them into the local currency

The individual values can be again expanded for more detail by clicking on any of the numbers.