Cash Flow forecasting within Microsoft Dynamics NAV is designed to allow companies to better predict their cash flow into the future.
It does this by consolidating all it knows about future cash (both incoming and outgoing) and any additional user added entries into a ledger, where it can be reported on.
The areas that the system is able to automatically add are:
General Ledger – actual and budgeted revenues and expenses
Purchasing – Current and expected payments for open and/or unpaid purchase orders
Sales – Current and expected receipts for sales
Service – Open Service orders
Fixed Assets – Planned disposal or budgeted purchase of assets
Users are able to manually capture any expected costs or income that the system may not be aware of. For example, maturing of a policy or repayment of a loan. However if these have already been recorded in the financial budget then they will already be accounted for.
Using the manual entries, it is also possible to create ‘what if’ scenario’s and see how these could impact the cash flow. For example, the impact of taking a loan and changes in expected sales.
The system can create multiple cash flow forecasts for the same period when doing ‘what if’ scenarios.
This information is then available to use in Microsoft Dynamics NAV Account Schedules. This gives users a really powerful reporting solution where they are able to create their own reports.
For more information on Microsoft Dynamics NAV Account Schedules please read my previous blog here http://wp.me/p3CFxa-eg
By Neville Foyn, Lead ERP Consultant at Evolution Business Systems
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Evolution Business Systems (EBS) specialises in business management solutions that give you the freedom to focus on your business. Melbourne based EBS does this by automating your core business processes and integrating your specialist business applications to deliver the right financial management solution. With deep expertise in leading financial applications including Microsoft Dynamics NAV and Arrow Financials, EBS works beside clients to ensure their software solves problems rather than creating more. EBS has a detailed implementation strategy that is tailored to customers in terms of timelines, requirements, risks and responsibilities. While it does not sell or support hardware or site network environments, EBS informally partners with selected specialists in these areas to provide clients with a “total solution”.