Cash flow forecast configuration in Microsoft Dynamics 365 finance and operations: Part-1

You can use the cash flow forecasting tools to analyse upcoming cash flow and currency requirements, so that you can estimate the company’s future need for cash.

In this blog primary focus is to complete the configuration for cash flow forecast calculation. So, before we start the configuration lets understand the key drivers for cash flow forecast.

Time between delivery date and invoice date: Number of days when the order is delivered or shipped, and it is invoiced. E.g., If we enter number of days as Net-1 which means if we deliver/receive order on 12^th April then invoice date will be 13^th April.

Terms of payment: This is standard terms to derive the Due date of the invoice.

Time between invoice due date and payment date: This derives the number of days between invoice due date and payment date e.g. if Due date is 20^th April and if we define Net 1 as time here then our expected payment date will be 21^st April

Liquidity account: Account where payment/receipts are going to be recorded e.g. Cash/bank account

Dependent account: You can set up a dependent cash flow forecast for a main account that contains transactions that are directly related to transactions in another main account. Each line that you add in the In the Dependent accounts section creates a cash flow forecast amount in a dependent main account. 

Note: When we define above parameters at customer level as well as in parameters then the customer level information will override the parameter setup.

Pre-requisites: Make sure we have power BI embedded enabled for reporting, if not then read this blog “Enable power BI in d365”

Now let’s start the configuration:

General ledger:

Accounts payable:

Accounts receivable:

Budget:

Cash flow forecast automation Setup :

This is required to consider all the transactions and update the cash inflow and outflow calculation.

Run process automation.

That’s it for this blog, in next blog I am going to run through scenario’s and see how these configurations are used .

Thank you !!! Keep reading and sharing !!!