Cash Flow Forecast in D365 BC/NAV

Cash Flow Forecast is used to generate the prediction of company's cash flow. Cash flow indicates its financial solvency and reveals whether the company can meet its financial obligations in a timely manner.

Through Cashflow Forecast, Company's would able to know that they have enough money to pay creditors and expenses when they are due.

Setup : 1. Chart of Cash Flow Account 2. Cash Flow Setup

1. Chart of Cash Flow Account

1.1) No. : Specifies the Number manually as per Involved Entry and Source Type Record.

1.2) Name: Specifies the Description as per Source Type Record.

1.3) Account Type: It's similar to G/L Account Card. The value are Heading, Total, Begin Total, End Total and Entry. Use Heading, Total, Begin Total, End Total value to give a proper Hierarchy to Chart of Cash Flow Account. Entry is used to get the record as per defined Source Type.

1.4) Totaling: Specifies the list of Account Number to get the Total balance of their Entries. But if Account Type is Total and End-Total.

** Source Type, G/L Integration and G/L Account Filter, these three are the pillar of Cashflow Forecast.**

1.5) Source Type: The options are as follows:

o Receivables: The Program use the Open Customer Ledger Entries and get the record from the summation of Remaining Amt. (LCY) filed as on date.

o Payables: The Program use the Open Vendor Ledger Entries and get the record from the summation of Remaining Amt. (LCY) filed as on date.

o Liquid Funds: The Program use the Liquid Fund Balance i.e., Bank, Cash etc. G/L Balance. As per Company's CFO G/L Account should be tagged in G/L Integration and G/L Account Filter.

o Cash Flow Manual Expense: The Program use the Cash Flow Manual Expense Balance which is anticipated at the start of Month.

o Cash Flow Manual Revenue: The Program use the Cash Flow Manual Revenue Balance.

o Sales Orders: The program uses all sales orders that are not yet fully invoiced to calculate the order volume. All open sales order item lines are registered in the cash flow account.

o Purchase Orders: The purchase order volume originates from all purchase orders that are not yet fully invoiced. All open Purchase order item lines are registered in the cash flow account.

o Fixed Assets Budget: The Program uses an acquisition costs of the budgeted fixed assets will be registered. To achieve this ** Turn on the Boolean of Budgeted Asset on FA Card Page**

o Fixed Assets Disposal: The Program uses the planned fixed assets sales are registered. To achieve this **Enter the value of Projected Disposal Date and Project Proceeds on Disposal at Line Level of FA Card Page**

o Service Orders: All open service order item lines are registered in the cash flow account. For this calculation, the program uses all service orders that are not yet invoiced.

o G/L Budget: The Program use the Budgeted Balance from G/L Budget. G/L Account should be tagged in G/L Integration and G/L Account Filter.

o Job: The program uses all Jobs that are not yet fully invoiced to calculate the order volume.

o TAX: As per based on Localization, the program use Tax Entries. For US, Australia it's VAT Entries etc.

o Azure AI: AI is nothing but it's learn from data and smart enough to give proper suggestion and analytics. **To run this source type needs large number of Historic Data**.

1.6) G/L Integration: The G/L Integration field has the following options:

o Balance: The current balance of the general ledger accounts that are used in the cash flow forecast calculation. Typically used for liquid funds.

o Budget: The budgeted entries of the general ledger that are used in the cash flow forecast calculation. Typically used to include relevant Profit and Loss (P/L) budget values.

o Both: Both options.

1.7) G/L Account Filter: Enter the general ledger accounts from where the balance and, or the budget entries should be derived.

2. Cash Flow Setup

2.1) Automatic Update Frequency: Specifies the automatic update frequency of the cash flow forecast. At the same time, the chart on the role center for the cash flow forecast with the?Show in Chart on Role Center?field enabled is also automatically updated. The options are?Never,?Daily, and?Weekly.

2.2) Accounts?- You use the fields on the?Accounts?FastTab to specify which accounts must be used for the entries in the sales, purchases, fixed assets, jobs, and tax areas etc. Tagged the respective Chart of Cash Flow Account.

2.3) Cash Flow Forecast No. Series?- Specifies the number series that is used in cash flow forecasts.

2.4) Taxable Period?- Specifies how often tax payment is registered. The options are?Monthly,?Quarterly,?Accounting Period, and?Yearly.

2.5) Tax Payment Window?- Specifies a date formula for calculating how soon after the previous tax period finished that the tax payment is registered. For example, you can enter 20D into the field, which will indicate that the tax payment should be registered 20 days after the previous tax period finished.

2.6) Tax Bal. Account Type?- Specifies the type of balancing account that your taxes are paid to. The options are?Vendor?and?G/L Account.

2.7) Tax Bal. Account No.?- Specifies the balancing account that your taxes are paid to. This field is only available when the?Tax Bal. Account Type?field is set to?G/L Account.

2.8) Azure AI?- On the?Azure AI?FastTab, you can manually configure the connection to Azure AI. However, instead of doing this manually, you can also use the associated assisted setup, which is explained in the following unit.

Cash flow manual expenses and revenues

* Create Cash Flow Manual Revenues and Expenses by clicking on New Button.

* If it's Recurring, give the frequency value and up to what period of time it's exist enter the date value in End By column.

Cash Flow Forecasts

To Create a Cash Flow Forecast, Click on New Button.

Consider Discount: Select the check box to have the cash discounts assigned in entries and documents that will be reflected in the liquidity calculation.

Consider Pmt. Disc. Tol. Date: Select the check box to have the program factor in the payment discount tolerance date when you calculate the cash flow date. You can only select this option if you decide to take the discount into consideration.

Consider Pmt. Tol. Amount: Select the check box to use the payment tolerance amounts from the posted customer and vendor ledger entries.

Consider CF Payment Terms: In addition to the standard payment terms of customers and vendors, you can specify your own methods of payment for the cash flow forecast. If you want to use these in the cash flow calculation, select this field.

Show in Chart on Role Center: Select the check box to have this Cash Flow Forecast promoted on the Role Center Cash Flow Chart.

G/L Budget From & G/L Budget To: Enter the starting and ending date from which you want to use the budget values from the general ledger in the cash flow forecast. Manual Payments From & Manual Payments To – Enter a starting and ending date from which neutral expenses will be included in the cash flow forecast.

Go to Process --> Cash Flow Worksheet

Turn on the Boolean to see the Balance for respective Source Type.

Go to Process --> Register

Once you Register the Cashflow Worksheet with Source Type Amount, System will create Cashflow Ledger Entries and update the Cash Flow Forecast Statistic on Cash Flow Card Page.

Cash Flow Forecast - Chart

Cash Flow Base Reports

Cash Flow Date List..

CF Availability by Periods

END

Hope this will help.

Thanks for reading.