Understanding cash inflows and outflows is the key to running a successful business.

You can use cash flow to easily create a short-term forecast that predicts how and when you expect money to be received and paid out by your business. It is important for you to know that your business will have enough cash to pay creditors and expenses when they fall due. Watch this How Do I video to learn how to benefit from the cash flow forecast simplifications in Microsoft Dynamics NAV 2017.

What is Cash Flow?

The term cash flow is used to designate cash receipts minus cash payments over a selected period. It is an estimate of the amount of money that you expect to flow in and out of your business. Also it includes all your forecasted income and expenses.

Cash Flow Overview

The following illustration shows an overview of how you can work with cash flow.

  • A user sets up a cash flow forecast.
  • A person can get cash flow forecast sources from the following areas:
    • General ledger – Information about the liquid funds and the budgeted revenues and expenses of your company.
    • Purchasing – Information about the current payables and any forecasted debts from open purchase orders.
    • Sales – Information about the current receivables and any forecasted receipts from open sales orders.
    • Service – Information about open service orders.
    • Fixed assets – Information about planned disposal and budgeted purchases of fixed assets.
    • Manual revenues and expenses – Manage manual revenues and expenses and include them in the cash flow forecast.
  • Use a batch job to transfer information from the areas of general ledger, sales, purchasing, service, and fixed assets to the worksheet. Then register worksheet lines to make a cash flow forecast.
  • Use various windows, reports, and charts to analyze and print a cash flow forecast that relates to availability and timeline overviews.

The Cash Flow forecast can then be used as an internal management decision-making tool. As a result of setting it up it helps you plan ahead and make important strategic decisions about the operation of the business. To learn more contact a Vox ISM representative.