Cashflow Forecast Reports

Overview#

The cashflow module allows organisations to forecast the expected monetary inflows and outflows to assist them in managing their cashflow.

The module is divided into three sections:

• A detailed cashflow forecast report for the next eight weeks.
• A summary cashflow forecast report for the next eight weeks.
• Cashflow Transactions, where you can enter running costs, loan repayments and other non-trading cash outflows. You can create a single transaction, or a transaction for every type of activity (e.g. weekly costs, monthly costs, loan repayments, capital expenditure).

The cashflow module is new and has limited features. Features can be added as requested.

Summary vs Detailed Cashflow Report#

• The detailed cashflow report lists every transaction that is included and every line item of cashflow transactions. The transactions can be opened from the right-click context menu.
• The summary cashflow report only lists the totals. There is no drilldown to the underlying transactions.
• Neither report has any filters; they are generated starting from the current week for the next eight weeks.

Reports Explained#

The cashflow reports are presented in this format:

• Opening Bank Balances: Depicts the actual bank and cash ledger balances and names the included bank accounts. The entry appears on the first line of the report.
• Net Cash Movement: The result of the inflow less outflow. The entry appears on the first line of the summary at the bottom of the report.
  • Add all income (inflow): Listed per category on the summary report and per transaction on the detailed report.
    • All the Customer Invoices that are due to be paid in a particular week. The customer's terms determine in which week the invoice is included.
    • Active Sales Orders where the required date and customer terms fall within the reporting period. For example, if a Sales Order is due next week and the customer pays COD, the amount is included in next week's forecast. The assumption is that an active sales order is not yet invoiced, but a completed sales order is invoiced and therefore excluded because the Customer Invoice is included.
    • Any additional income that is received, which can be loans from owners, or interest from a bank or investment account. This additional income must be captured on a Cashflow Transaction to be included.
    • Any VAT Refunds. The amount is included in the week of the 25th. VAT Refunds are only included if a VAT reconciliation was completed and resulted in a refund being due. VAT Refunds may be delayed for up to 21 days. Partial VAT refunds are deducted from the amount due.
  • Deduct all expenses and payments (outflow): Listed per category on the summary report and per transaction on the detailed report.
    • All the Supplier Invoices that are due to be paid in a particular week. The supplier's terms determine in which week the invoice is included.
    • Active Purchase Orders where the required date and supplier terms fall within the reporting period. For example, if a purchase order is due in week one, and the supplier is paid after two weeks, the amount is included in week three. The assumption is that an active purchase order is not yet invoiced, but a completed purchase order is invoiced and therefore excluded because the Supplier Invoice is included.
    • The weekly running costs as captured on a Cashflow Transaction.
    • The monthly running costs as captured on a Cashflow Transaction if the date of payment falls within the reporting period.
    • Any additional payments (e.g. loan repayments) as captured on a Cashflow Transaction.
    • Any VAT Payments. VAT Payments are only included if a VAT reconciliation was completed and resulted in a payment being due. VAT Payments are included in the week of the 25th. (VAT Payments made via e-filing are due on the last business day of the month.) Partial VAT payments are deducted from the payment due.
• Expected Closing Bank Balances: The Opening Bank Balances added to the Net Cash Movement. The entry appears on the second line of the summary at the bottom of the report.
• Overdraft and Credit Facilities, as entered on a cashflow transaction, appear on the third line of the summary at the bottom of the report.
• Cash Available is calculated by adding the Closing Bank Balances to the Overdraft and Credit Facilities. This amount is an important indication of whether an organisation will have cashflow problems in the next eight weeks.

Accuracy of the Reports#

1. How far in advance invoices are generated for both customers and suppliers. Weeks which reflect anticipated invoice payments and receipts are more accurate than weeks that estimate the cashflow based on sales and purchase orders.
2. The accuracy and duration of credit terms for Customers and Suppliers. If this information is not captured correctly, payments do not reflect in the correct periods.
3. Whether Customers pay on time or not. No allowance is made for late payments.
4. The accuracy of due dates on Sales Orders and Purchase Orders.
5. The accuracy of the information included in the Cashflow Transactions.

If the report is left open, click View (button) to include recent transactions.

Settings#

Transaction Settings#

Add the following settings to the listed Transaction Types and set the values as indicated:

• Supplier Invoice > Caption for Due Date = Payment Due.
• Supplier Invoice > Set Due Date from Credit Terms = Checked.
• Customer Invoice > Caption for Due Date = Payment Due.
• Customer Invoice > Set Due Date from Credit Terms = Checked.
• Purchase Order > Caption for Due Date = Due Date.
• Sales Order > Caption for Due Date = Due Date.
• Cashflow Transactions > Caption for Check In = Forecast Date.

User Access Settings#

• User Settings:
  • General - Reports Access Allowed: Click Edit in the Value column and move the cashflow reports from the Available to the Selected section.
• Transaction Settings:
  • Cashflow Transactions (CAF): Check or uncheck the checkboxes as needed. The View options should be None, All or Admin.
  • Click Actions (button) > Add/Remove Modules if the Transaction Type is not on the list of available Transaction Types.

Cashflow Report (8 Weeks)#

Buttons Explained#

Fields Explained#