To enable a cash-flow forecast including sales and purchases, a minimum setup is required:

1. Click Accounts receivable> Setup> Posting profiles .

2. On the Setuptab, in the Settle accountfield, select the account to be used as the liquidity ledger account for customer payments.

3. Click Accounts payable> Setup> Posting profiles .

4. On the Setuptab, select the account as the liquidity ledger account for payments to vendors.

The cash-flow forecasts (future transactions) are calculated on the basis of the delivery dates of sales or purchase lines. If the delivery date has passed, the cash-flow forecasts are calculated on the basis of the system date.

You can calculate the forecast for sales and purchases using a number of additional parameters in both the Accounts receivableand Accounts payablesections.

1. Click Accounts receivable> Setup> Parameters .

2. On the Ledger and sales taxtab, select values as appropriate for the cash-flow forecast.

3. In the Period between delivery and invoicingfield, select a value that represents the interval between sales order delivery date and the expected invoicing of the order.

4. In the Invoicing periodfield, select a value that represents the interval between future sales transactions and the invoice date (for example, Net + 1 days term of payment). This value is applied to budget lines, open sales orders, and free text invoices.

5. In the Terms of paymentfield, select a default term of payment for sales. This value is used for cash-flow calculations except when the terms of payment are specified on the sales order, the customer account, or the customer group.

6. In the Settle periodfield, select the value that represents the anticipated delay between the due date and the date of payment.

7. In the Settle accountfield, select the liquidity account that is the default account to which customer payments are posted.

8. In the Allocation keyfield, select the value that reduces the impact of the budget in the cash-flow forecast as sales orders are created.

9. Set up cash-flow parameters in the same way for purchases in Accounts payable> Setup> Parameters .

The cash-flow forecast can also take into account different customer or vendor groups.

Example

To create a cash-flow forecast for customer groups:

1. Click Accounts receivable> Setup> Customer groups .

2. In the Terms of paymentfield, select the terms of payment that are used for customers in the customer group.

   If terms of payment are specified on the sales order or the customer, these terms have higher priority than the customer group terms of payment.

3. In the Settle periodfield, select the value that represents the anticipated delay between the payment due date and the date on which you expect the payment to be completed.

4. To set up cash-flow parameters for vendor groups, click Accounts payable> Setup> Vendor groups , and repeat the steps 2 through 4.