You can use Dynamics GP Cash Flow Management to pre-define an opening balance for a forecast, based on a single cash management transaction or a specific General Ledger account balance.
You also can base a forecast on one or more checkbook balances with or without work or adjust transactions, such as deposits, payments and reconciliation adjustments that are not part of the checkbook balance.
You also can use Cash Flow Management to complete the following tasks:
- Create an unlimited number of cash flow forecast definitions
- Forecast cash flows in different ways
- Create scenarios without actually recording transactions
- Summarize daily inflows and outflows of cash in the calendar window
- View the summary of any given day’s cash inflow and outflow • Obtain weekly—detailed or summary—and monthly calendar reports
This article is designed to give you an understanding of how to use the features of Dynamics GP Cash Flow Management and how it integrates with the Microsoft Dynamics GP system.
Dynamics GP Cash Flow Management Forecasts and Transactions
You can create and keep an unlimited number of cash flow forecast definitions. The cash flow forecasts that you define will be displayed in the Cash Flow Calendar and the Cash Flow Explorer.
“What if” transactions (external inflow and outflow transactions that are not actually entered in Great Plains) let you see what effect actual transactions will have on your cash flow.
This information is divided into the following sections:
- Setting up cash flow forecasts
- Entering “what if?” cash flow transactions
1. Setting Up Cash Flow Forecasts
The Cash Flow Forecast window is divided into four main sections: Financial, Sales, Purchasing, and General. You will use these sections to customize your cash flow forecast as follows:
Financial This section specifies the opening balance of your forecast. Choose checkbook ID balance(s), a flat amount, and/or a General Ledger account balance.
Sales This section specifies whether your forecast will include transactions from Receivables (Open and/or Work) and/or Sales Order Processing documents.
Purchasing This section specifies whether your forecast will include transactions from Payables (Open and/or Work) and/or Purchase Order Processing documents.
General This section specifies whether your forecast will include Cash Flow Transactions and the number of weeks the Explorer Reports will display.
To set up cash flow forecasts:
- Open the Cash Flow Forecast window. (Great Plains menu>> Tools >> Setup >> Financial >> Cash Flow Forecast)
- Enter or select a Forecast ID.
- To save this Forecast ID as the default forecast, mark the Default option. The default forecast appears in both the Cash Flow Calendar and the Cash Flow Explorer. You can change the default forecast at any time, by selecting another Forecast ID and making it the default.
- Enter a description for the Forecast ID selected.
- To include an opening balance in your forecast, mark the appropriate options. You may include a specific amount, an account balance, and/or the balance of one or more checkbooks.
Due Date Based on the transaction due date (default).
Average Days Based on the number of days a customer has taken to pay invoices in full since you began doing business together (Avg. Days Life-toDate).
Sales transactions (Receivables Management and Sales Order Processing) will display in Cash Flow forecasts on the requested ship date of the line item plus the date option you select–either Due Date or Average Days.
For purchase orders that are entered as Blanket, or Drop-Ship Blanket, the control line amount is excluded from the amounts shown for the Cash Flow Calendar and Cash Flow Explorer.
- To include Payables Management transactions in your forecast, mark the appropriate options under Purchasing. You may include Open (posted) transactions and/or Work (unposted) transactions.
- To include Purchase Order Processing Documents, mark the Purchase Order Processing Documents option.
2. Entering “what if?” Cash Flow Transactions
Cash Flow Management allows you to enter “what if” transactions (external inflow and outflow transactions that are not actually entered in Great Plains) to see what effect these transactions will have on your cash flow.
These transactions will be displayed in both the Cash Flow Explorer and the Cash Flow Calendar for any forecast with the Cash Flow Transactions option marked in the Cash Flow Forecast window.
To enter “what if?” cash flow transactions:
- Open the Cash Flow Transactions window. (Great Plains menu >> Tools >> Setup >> Financial >> Cash Flow Transaction)
- From the bottom-left drop-down list, select one of the following sorting methods for the transactions:
Sequence # Transactions will be displayed as they were entered originally (default).
Due Date Transactions will be displayed in ascending date order.
- In the Due Date column, enter the transaction’s due date.
- Inside the Description column, enter a description for the transaction (optional).
- In the Amount column, enter the transaction amount. To enter a negative or outflow amount, enter a minus (-) in front of the amount.
- Repeat steps 3 through 5 until you have entered all the transactions you wish to enter.
This section explains common problems you might have with Dynamics GP Cash Flow Management. Before calling Product Support, check this section to see if there is an easy solution to the problem you are having.
Missing Checkbook Transactions
Situation: Individual transactions entered to my general ledger in Quick Journal entries are not included in Cash Flow Management forecasts. Why?
Solution: Individual transactions entered to your general ledger, as in Quick Journal entries, do not follow through to your checkbook and will not be included in Cash Flow Management forecasts.
Different Currency Checkbook
Situation: One of my checkbook IDs is a different currency. How can I get a consolidated look at my overall cash position in my home currency?
Solution: Cash Flow Management includes all checkbook IDs marked in the Cash Flow Forecast window. Checkbook IDs with a different currency from the functional currency will be included in cash flow forecast but will appear in the functional currency only.
Cash Flow Management is installed automatically when you install Microsoft Dynamics GP. You must have the appropriate registration keys to use it, however. For more information on Microsoft Dynamics GP Cash Flow Management, please contact us.