Walkthrough: Making Cash Flow Forecasts by Using Account Schedules

This walkthrough describes how you can use account schedules to make cash flow forecasts. Account schedules perform calculations that cannot be done directly in the chart of cash flow accounts. In the account schedules, you can set up subtotals for cash flow receipts and disbursements. These subtotals can be included in new totals that can then be used in making cash flow forecasts.

About This Walkthrough

This walkthrough describes the following tasks:

  • Setting up a new cash flow account schedule name.
  • Setting up account schedule lines.
  • Setting up a new column layout.
  • Assigning a column layout to an account schedule.
  • Viewing and printing the cash flow forecast.

Prerequisites

To complete this walkthrough, you will need:

  • Business Central
  • The cash flow worksheet lines are registered

Roles

This walkthrough demonstrates tasks that are performed by the following user role:

  • Controller

Story

Ken is a controller at CRONUS who makes monthly cash flow forecasts. He includes finance, sales, purchase, and fixed assets in the forecast, and then he presents it to CFO Sara for business insight.

Setting Up a New Account Schedule Name

An account schedule consists of a cash flow account schedule name with a series of lines and a column layout.

To set up a new account schedule name

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter Account Schedules, and then choose the related link.
  2. On the Account Schedule Names page, choose the New to create a new cash flow account schedule name.
  3. In the Name field, enter Forecast.
  4. In the Description field, enter Cash Flow Forecast.
  5. Leave the Default Column Layout and Analysis View Name fields blank.

Setting Up Account Schedule Lines

After an account schedule name is set up, Ken defines each line that appears in the cash flow account schedule. Ken defines lines that can be shown in reports in addition to lines that are only for calculation purposes.

To set up account schedule lines

  1. On the Account Schedule Names page, select the new Forecast account schedule name that you have created, and then choose the Edit Account Schedule action.

  2. On the Account Schedule page, enter each line as shown in the following table.

    Tip

    Using the Insert CF Accounts function, you can quickly mark the cash flow accounts from the chart of cash flow accounts and copy them to account schedule lines.

    Row No. Description Totalling Type Totalling Row Type Amount Type Show
    R10 Open sales orders Cash Flow Entry Accounts 20 Net Change Net Amount Yes
    R10 Rentals Cash Flow Entry Accounts 30 Net Change Net Amount Yes
    R10 Financial assets Cash Flow Entry Accounts 40 Net Change Net Amount Yes
    R10 Fixed assets disposal Cash Flow Entry Accounts 50 Net Change Net Amount Yes
    R10 Private investments Cash Flow Entry Accounts 60 Net Change Net Amount Yes
    R10 Miscellaneous receipts Cash Flow Entry Accounts 70 Net Change Net Amount Yes
    R10 Open service orders Cash Flow Entry Accounts 80 Net Change Net Amount Yes
    R20 Total Cash Receipts Formula R10 Net Change Net Amount Yes
    R20 Total Cash Receipts Formula R10 Net Change Net Amount Yes
    R30 Payables Cash Flow Entry Accounts 1010 Net Change Net Amount Yes
    R30 Open purchase orders Cash Flow Entry Accounts 1020 Net Change Net Amount Yes
    R30 Personnel costs Cash Flow Entry Accounts 1030 Net Change Net Amount Yes
    R30 Running costs Cash Flow Entry Accounts 1040 Net Change Net Amount Yes
    R30 Finance costs Cash Flow Entry Accounts 1050 Net Change Net Amount Yes
    R30 Investments Cash Flow Entry Accounts 1070 Net Change Net Amount Yes
    R30 Private consumptions Cash Flow Entry Accounts 1090 Net Change Net Amount Yes
    R30 GST due Cash Flow Entry Accounts 1100 Net Change Net Amount Yes
    R30 Other expenses Cash Flow Entry Accounts 1110 Net Change Net Amount Yes
    R40 Total cash disbursements Formula R30 Net Change Net Amount Yes
    R50 Surplus Formula R20+R40 Net Change Net Amount Yes
    R60 Cash Flow Funds Cash Flow Entry Accounts 2100 Net Change Net Amount Yes
    R70 Total Cash Flow Formula R50+R60 Net Change Net Amount Yes

    Note

    The row number R10 is used to capture the account totals for receivables. The row number R20 is used to calculate the sum of all cash receipts. The row number R30 is used to capture the account totals for payables. The row number R40 is used to calculate the sum of all cash disbursements. The row number R50 is used to capture the sum of cash surplus. The row number R60 is used to capture the liquid funds. The row number R70 is used to calculate the forecasted cash flow.

Setting Up a New Column Layout

Before Ken can print the cash flow forecast, he needs to create the column layout for the numerical information. In the columns, he defines the information that he wants to use from the lines.

  • The first column has the number C10 with the title Amount and contains the net change.
  • The second column has the number C20 with the title Balance at Date and contains the transactions for the period.
  • The third column has the number C30 with the title Entire Year and contains the net change in the balances for the entire financial year.
  • Finally, he assigns the column layout as the default column layout for the account schedule Forecast.

To set up a new column layout

  1. In the Account Schedule Names window, select the new Forecast account schedule name that you have created. On the Home tab, in the Process group, choose Edit Column Layout Setup.

    Tip

    You can find the same action in the Account Schedule page if you are still editing the Forecast account schedule there.

  2. Create a new column layout with the name Cash Flow.

  3. Choose the OK button.

  4. Enter each line exactly as shown in the following table.

    Column No. Column Header Column Type Ledger Entry Type Amount Type Show
    C10 Amount Net Change Entries Net Amount Always
    C20 Amount until Date Balance at Date Entries Net Amount Always
    C30 Entire Financial Year Entire Financial Year Entries Net Amount Always

Assigning the Column Layout to the Account Schedule Name

Ken is now ready to assign the column layout to the account schedule name.

To assign the column layout to the account schedule name

  1. In the Account Schedule page where you're working with the Forecast account schedule, choose the Edit Column Layout Setup action.
  2. In the Column Layout Name field, choose the column layout Cash Flow to assign as the default column layout.

To view and print the cash flow forecast

  1. On the Account Schedule Names page, choose the Overview action to view the cash flow forecast.
  2. On the Acc. Schedule Overview page, you can select an amount and then view the cash flow forecast entries that make up the amount. In addition, you can view the formula that is used to calculate the amount. You can also filter the amounts by date and dimension.
  3. Choose the Print action to print the cash flow forecast.

See also

Work with Account Schedules
Analyzing Cash Flow in Your Company
Business Process Walkthroughs
Work with Business Central