Tip of the Month for: November 2015
Accounts Receivable Cash Projection
A projection is available in Accounts Receivable to give you an idea of expected incoming payments and cash flow.
Using up to six dates, Answers can calculate the expected amount of incoming payments for those six dates and a Future amount as well. The calculation is performed using the invoice date and the customer's Average Days to Pay. An option is available to calculate using the Invoice Due Date, however using the customer's average days to pay would seem to give a more accurate and realistic picture of when each invoice could be expected to be paid based on the customer's payment history. Discounts can be included as well, assuming the customer's are only allowed to take "eligible" discounts for invoices paid within the discount date period.
The A/R Cash Projection provides two reports. A Summary Report allows you to print the Projection Results and the dates used to calculate the projection. A Detail Report prints not only the dates and the projected total for each date, but also prints the individual invoices that made up that detail. The customer, average days to pay, invoice number, invoice date, terms, invoice amount, discount amount and date, and the total amount expected to be paid are printed for the detail report.
The A/R Cash Projection can be found under Accounts Receivable > Inquiry.
The A/R Cash Projection also runs automatically at night during the Business Analysis Calculations. By default, Answers uses the current date and computes the next six weeks for projections. The results are shown in the Daily Business Analysis Summary window under the A/R Detail button along with the Detail Aging. The default is to calculate using the Customer's Average Days to Pay and to not include discounts, although you can adjust these two parameters by going to System Management > Answers Software Maintenance > Batch Processing Data Entry and clicking on the Accounts Receivable tab.