This guide covers the cash flow forecast. The cash flow forecast provides an overview of the company's financial status and current and future liquidity. It includes graphics and a table that show liquidity and operational cash flow. The forecast assists in company decision-making and financial management. 

CONTENTS

Overview and access rights

The cash flow forecast helps company decision-makers form an understanding of the company's current and near-future liquidity. Based on the information, decisions can be made on actions to achieve the desired situation. Cash flow indicates the company's liquidity, i.e., how much money you have available right now for paying invoices, loan repayments, and salaries. 

The cash flow forecast is automatically available to all companies using Accounts payable. To ensure the forecast is as up-to-date as possible, we recommend that companies use daily bank statements. Cash flow considers the balance of the ledger and bank statement, not vouchers or bank statement transactions. 

The cash flow forecast is included in the following packages: Basic, Core, Professional, and Premium. The cash flow forecast is not included in the Light package. 

To use the cash flow forecast, you need one of the following access rights combinations:

  • A) Payment rights for purchase invoices + from function-specific rights the basic functions of Accounts payable and Accounts payable views and lists (read rights are sufficient)
  • B) Company user profile (can view the view but not drill down into transactions).
  • C) Accountant role KP + in addition from function-specific rights editing rights to the bookkeeping section (i.e., all rights to bookkeeping, this is ready in the profile "All rights").

You can view the cash flow forecast graphics from the Netvisor start view.

  1. In the start view, select the cash flow forecast graphics.
  2. Below the graphics, select "Go to cash flow forecast" to open the full cash flow forecast view.
  3. You can also open the cash flow forecast view by selecting "Financial management > Reporting and monitoring > Cash flow forecast".

The sidebar structure of the cash flow forecast consists of four parts: Settings, Graphics, Table view, and Summary.

Settings

At the top of the view, you will find the action buttons related to the page settings. In the settings, it is possible to define which data is shown in the graph, update the forecast data, select the desired review frequency and time period. Additionally, you can set user-specific settings to suit the company's purpose.

"Update forecast" function updates the graphics and table with the latest data available from the system, taking into account the user's own entries.

  1. Use the "Update forecast" function when you want to update the forecast immediately after changes have been made to transactions affecting the forecast.

The forecast is automatically updated once a night with the previous day's transactions.

"Day", "Week", and "Month" selections allow you to choose the level of detail for reviewing data. Additionally, data can be reviewed by selecting the desired time period in the "Date" fields. The setting affects both the graphics and the table.

  1. Select "Day", "Week", or "Month" depending on the level of detail at which you want to review the data.
  2. Enter the desired time period in the "Date" fields to limit the review period.

"Cash flow forecast functions" menu allows you to define the following:

Restore default time period: Option to restore the forecast's default time period, which shows the forecast 1 month back and 12 months forward.

  1. Select Restore default time period when you want to restore the forecast's default period (1 month back and 12 months forward).

Cash flow forecast settings: Option to influence how the system processes and displays data with a few settings.

Delay in collection of sales invoice means how quickly it is believed that the customer will pay the invoice in collection. This affects how long the invoice is shown in the cash flow forecast in relation to the due date if the invoice has reached the collection stage. If the invoice is in any other state than collection, this option does not affect the visibility of the invoice in the cash flow forecast. 

The timing of the sales invoice in collection in the forecast is calculated as follows:
Original sales invoice (Due date OR invoice date) + Delay in collection of sales invoice.
Due date OR invoice date means using the invoice due date if set, otherwise the invoice date is used as the default basis.
So, invoice due date + default 14 days (Delay in collection of sales invoice).
And if this calculated date falls into the past, it will remain as the current day until the invoice is paid (the date never goes into the past, but is either the current day or in the future).

If you leave Delay in collection of sales invoice at zero, the timing of the invoice in collection in the forecast is the same as the original due date or date.

General settings

Show historical data and Forecast length selections are important. If a transaction falls outside these periods, it will not appear in the forecast. The selections also affect the review period, as the cash flow forecast's Restore default time period retrieves data from these fields.

  1. Define in the Show historical data field how far back you want to review past transactions.
  2. Define in the Forecast length field how far into the future the forecast is calculated.

Consideration of bank account credit limit in the forecast affects, among other things, the liquidity curve in the cash flow calculation. The selection takes into account if the bank account has a credit limit, meaning the bank account can go negative by the agreed amount with the bank. The credit limit increases liquidity by the remaining credit limit if the bank account has this agreed with the bank. 

Management of set exceptional dates: This function manages the dates that the user has modified for payments and/or receipts through the forecast. The changes affect only the cash flow forecast calculation, not the transaction itself.

  1. Open Management of set exceptional dates when you want to view, add, edit, or delete exceptional dates set through the forecast.
  2. If modifying the predicted day of the transaction is not active on the cash flow forecast transaction (the function appears grayed out), make the modification or deletion in the Calculation exceptions view.

Management of own events: This function manages the user's own entries. The entries are shown in the cash flow forecast in the way defined by the user.

  1. Open Management of own events when you want to create, edit, or delete own events.
  2. Add a new own event either through this function or directly from the table/graphics.
  3. Define the event amount as negative if it is an expense and positive if it is income.
  4. If necessary, select the setting remove event after payment day and enter the desired event date so that the event is removed from the cash flow forecast after the payment day.
  5. Alternatively, delete the own event manually at the desired time.

The program cannot link the own event to the actual event that has arrived in the program. 

 

Management of bank accounts: The view shows which bank accounts are considered in the forecast calculation and with what balance. The balance is always checked from the latest bank statement or, if the balance information has been separately updated, then the latest updated balance information is used. Additionally, the balance can be updated directly to the cash flow forecast. The view also shows the available balance on the account.

  1. Open Management of bank accounts when you want to view the bank accounts and their balances considered in the forecast.
  2. If necessary, update the bank account balance directly to the cash flow forecast.
  3. Select which bank accounts are considered in the forecast calculation.

Graphics

The most visible section in the forecast is the graphical representation of the data, which is formed from the data available from the system and the user's own entries.

Graphics functionalities:

  • At the top, there is an option to select the data shown in the columns. The selections do not affect the liquidity and operational cash flow curves.
  • From the columns and curves, there is an option to drill down into the transactions from which the data for that time period is formed (HRM drilling is limited for security reasons).
  • During drilling, there is an option to modify the data shown in the cash flow forecast. The changes do not affect the transaction itself, i.e., for example, modifying the date through the "Modify event forecast date" function on a sales invoice does not make changes to the sales invoice. An exception is the purchase invoice, where the forecast date is shown (does not affect the due date) both on the purchase invoice and in the Accounts payable view. This allows the company to better plan its payments if desired. The forecast due date is explained in more detail later in the article.
  • The time period can be changed with the selector at the bottom of the graphics and by painting the desired area directly from the table.
  1. Select at the top of the graphics which data you want to show in the columns.
  2. Select a column or curve when you want to drill down into the transactions for that time period.
  3. When drilling down, modify, if necessary, the data shown in the cash flow forecast (note the purchase invoice exception).
  4. Change the time period under review with the selector at the bottom of the graphics or by painting the desired area from the table.

Table view

The table view is a tabular representation of the data, which is formed from the data available from the system and the user's own entries.

Table functionalities:

  • Drilling down into transactions
  • Creation, modification, and deletion of new transactions and user's own entries
  • Own events appear in the forecast in the event category where the user has placed the event.
  1. Select the desired row in the table when you want to drill down into a transaction.
  2. Add a new transaction or own entry from the table when you want to supplement the forecast.
  3. Modify or delete existing transactions and own entries through the table.

The amounts shown in the table are composed according to the following principles:

Sales

Sales invoices: Sales invoices show in the cash flow forecast when the invoice is created. Unsent invoices are also visible, but invoices in draft status are not visible. 

Sales invoices appear in the cash flow forecast in the week where the forecast date falls. Sales invoices show in the ledger the invoices due that week as open, as well as overdue, reminded, noted, in collection, and in Visma Duetto.

If the due date is in the past over 2 banking days, the forecast date is today. The forecast date is the invoice due date + 2 banking days. If the forecast date then falls on a weekend, the forecast date moves to the next monday.

An exception is factoring invoices, where the forecast assumes the amount is received 3 banking days from the invoice date. If the factoring invoice is in the past and 3 banking days from the invoice date would also be in the past, then the invoice appears in the cash flow forecast for this week and the forecast due date is today. 

Credit notes do not appear in the cash flow forecast unless they are allocated to the credited sales invoice. When the credit note is allocated to the sales invoice, neither the sales invoice nor the credit note is shown in the cash flow forecast. If it is a partial credit, the charge invoice is shown in the forecast according to the open amount after allocation.

If a payment reminder or notice has been sent for the sales invoice, it is calculated in the background from the latest sending + 13 days, and the invoice appears in the cash flow forecast based on this in the week it falls. The cash flow forecast shows the taxable amount of invoices. 

If a financing service/factoring is used, where the finance company pays the customer immediately a certain percentage of the sales invoice amounts, this does not directly appear in the sales invoice amounts unless a separate receipt is made for this on the invoice. You can use cash flow's own events to assist with this.

For example, you can proceed as follows:

  • Add an own event 'Loan drawdown' as a positive X% of the invoice amount on the day when the first part of the factoring receipt is received.
  • Add an own event 'Loan repayment' as a negative of the same X% on the due date of the sales invoice. On the due date, only the remaining percentage is paid to the account, so the amount received in advance is acknowledged from the invoice as a loan repayment.

Sales orders: Sales orders appear in the cash flow forecast according to the order line delivery date. If no line delivery date is given, the order delivery date is used. (Sales offers are not considered in cash flow).

When the order is invoiced, the order is removed, and the sales invoice remains in the cash flow forecast. If the order is partially invoiced, the sales order appears in the cash flow forecast for the line that has not yet been invoiced. The cash flow forecast shows the taxable amount of sales orders. 

Receipts: Receipts consist of receipts received during the current week. The receipt must be positive; credit losses are not considered. The cash flow forecast shows manually made receipts for the invoice. Unallocated reference receipts also appear in receipts.  

Contractual invoicing: Contractual invoicing shows invoices formed through contractual invoicing service baskets, whose due date or forecast due date is that week. The view shows the basket amount also in the future, even if the basket billing has not yet started and the basket is in waiting status. When invoices are formed from contractual invoicing, they then appear in the cash flow forecast under sales invoices.

Repetitive invoicing: Repetitive invoicing shows invoices formed through repetitive invoicing, whose due date or forecast due date is that week. The cash flow forecast also considers invoices that have not yet been formed from repetitive invoicing but are coming into the system through automation.

Purchases

Purchase orders: Purchase orders show undelivered purchase orders that are open that week. The date for the forecast is calculated from the purchase order line delivery date + payment term. The purchase order line disappears from the cash flow forecast when the line is delivered. Archiving the purchase order also removes it from the cash flow forecast. The cash flow forecast shows the taxable amount of purchase orders.

Purchase invoices: Purchase invoices show all invoices due that week and previously due invoices. Purchase invoices are visible even if they are unprocessed or unaccounted. The user can choose from the cash flow forecast settings whether to consider cash discounts in the amounts.

Purchase invoices have the following special cases on how they are considered in the forecast:

  • The cash discount date is used until the invoice has a cash discount available.
  • The due date is used normally until the due date has passed. When the due date has passed, the current day is used as the due date.
  • The forecast due date is used if the user has changed the forecast due date on the invoice. This change replaces the invoice's original due dates for the cash flow forecast, but never on the actual invoice.
  • When an open invoice is overdue, the forecast due date automatically becomes the current day. In this case, purchase invoices appear in the cash flow forecast according to their forecast due date. The open amount of the invoice is updated when payments come from the bank statement. Then they are also updated in the cash flow forecast.

Payments: Payments show the payments for the current week. The view shows manual payments made for purchase invoices.

Expenses

Bank transfers: Bank transfers are shown according to the due date. If the due date has passed, old transfers are visible in the current week. If a paid transfer is linked to an existing invoice, the transfer moves to payments. If there is no invoice, the transfer remains under the "Bank transfers" heading.

Tax account payments: Tax account payments are visible under the "Tax account payments" heading. 

Pay: Pay shows salaries due during the current month in total. As soon as the payslip is formed in the payroll process (but can still be in "unprocessed payslips" status), its euros are included in the cash flow forecast.

By selecting the graph with the mouse, you can see a breakdown of employees, payment day, and the amount to be paid. The payment day means the day the pay is in the employee's account. Viewing payroll data requires the payroll accountant role. If the pay payment is canceled, the pay does not disappear from the cash flow forecast. 

Travel expense reports: Travel expense reports show payable travel expense reports and the forecast payment date. The payment date is forecast based on when previous travel expense reports were paid. You can drill down directly into travel expense report details from the heading, where you can see the participants of the travel expense report.

Pay and travel advances: Pay and travel advances show the payment date and the amount to be paid.

Settlements: Settlements show the settlement point, type, reference number, bank account, status, forecast payment date, and the amount to be paid.

Financing income

Financing income: Appears in the forecast in the week the income is marked to occur.

Loan taking: Appears in the forecast in the week the taking is marked to occur.

Other financing income: Appears in the forecast in the week the income is marked to occur.

Financing expenses

Loan repayments: Appear in the forecast in the week the repayments are marked to occur.

Dividends: Appear in the forecast in the week the dividends are marked to be paid.

Other financing expenses: Appear in the forecast in the week the expenses are marked to occur.

Total

The Total column is calculated as follows: Sales - Purchases - Expenses + Financing income - Financing expenses.

Available

The Available amount is calculated by adding the current bank account balance (latest information from the bank statement with or without limit, depending on what is selected in the settings) and the expected future events from the selected time period.

The Available column is calculated as follows: Latest bank account balance + Sales - Purchases - Expenses + Financing income - Financing expenses.

The Available field for the next week is calculated from the previous week's Available field + Sales - Purchases - Expenses + Financing income - Financing expenses.

It is recommended to monitor the Available balance on a daily basis, so the above formula is as accurate as possible. If the Available column is viewed on a weekly or monthly basis, differences may arise, because the Total column considers both realized and future events for the entire week/month, which may already be considered in the bank account balance.

Summary 

The summary has compiled the most important figures from the company's data below. The Summary section's Available on bank accounts, Open receivables, Unpaid expenses, and Open offers always show the latest situation in Netvisor and do not follow the time limit.

Available on bank accounts: Available on bank accounts shows the available balances on bank accounts in total. In the cash flow forecast settings, it can be selected that credit limits are not considered. If credit limits are considered, the information is taken from the bank statement (for example, limit changes are managed from the bank statement information). 

Additionally, if currency accounts are used, the forecast shows them with the amount on the account, i.e., it does not convert the balance to euros. The selection of accounts to be shown can be changed in Bank account management.

Open receivables: Open receivables consist of all open events in the accounts receivable.

Unpaid expenses: Unpaid expenses consist of open expenses visible in the table. It does not include forecasted expenses. Unpaid expenses do not consider the user's own events but are based on actual events recorded in the system.

Open offers: Open offers are sales offers, whose amount includes all offers that are not archived.

Considerations

If a transaction falls on a weekend (i.e., not a banking day), the cash flow forecast moves the transaction to the previous or next banking day. For example, if an own event "Payment" is created for january 1st, which falls on a saturday, the event is moved to the previous banking day, December 31st, which is a friday.

Transactions are moved in the forecast as follows: 

  1. Travel expenses and salaries per day are not moved.
  2. Sales transactions are always moved to the next banking day.
  3. All other entries are moved to the previous banking day.

There is no currency converter in cash flow; all transactions are shown in euros.

Liquidity and operational cash flow

The table below shows which figures are calculated for each graph. Note that even if own events are placed in a specific category (salaries, other financing income, etc.), they do not affect operational cash flow.

FAQ

How do I get a bank statement transaction to appear in cash flow?

Cash flow only considers the balance of the bank statement. If you want a bank statement transaction to appear in cash flow, you can add the transaction as an own event in cash flow or, if possible, make it a manual receipt in the ledger.

How do cash flow+ service invoices appear in the cash flow forecast?

The cash flow forecast does not consider invoices in the cash flow+ service.
The financed amount appears as a "lump sum" on the bank statement. It is not allocated separately to invoices and does not appear in the cash flow forecast. 

The lump sum is detailed by Noja through the interface, which breaks down this lump sum. 

A receipt is recorded on the invoice once the invoice is paid, and this appears in the cash flow forecast.


Frequently asked questions

Question: How do I open the cash flow forecast view?

Answer: You can open the cash flow forecast view by selecting the cash flow forecast graphics in the Netvisor start view and clicking the "Go to cash flow forecast" link, or by selecting Financial management > Reporting and monitoring > Cash flow forecast.

Question: How do I update the cash flow forecast data immediately?

Answer: In the Settings section of the cash flow forecast, select "Update forecast" when you want to update the graphics and table with the latest data immediately without waiting for the nightly automatic update.

Question: Why does a transaction not appear in the cash flow forecast?

Answer: A transaction does not appear if its date falls outside the period defined by the Show historical data or Forecast length settings, or if the transaction type is not considered in the cash flow forecast (for example, sales offers).

Question: How do own events affect the cash flow forecast?

Answer: Own events appear in the cash flow forecast in the event category where they have been added. They affect the amounts but never change the system's actual transactions, and the program does not link own events to real transactions.

Question: How is the bank account credit limit considered in the forecast?

Answer: If you select in the settings that the credit limit is considered, liquidity increases by the remaining credit limit on the bank account. Information on the credit limit is retrieved from the bank statement.

Question: How does the forecast due date on a purchase invoice work?

Answer: When you change the forecast due date on a purchase invoice, the cash flow forecast uses this date as the basis for the calculation. The change does not affect the actual due date of the invoice, but in the forecast the original due dates are replaced by the forecast due date.

Question: Why does a transaction falling on a weekend appear on a different day?

Answer: The cash flow forecast moves transactions falling on a weekend to banking days: sales transactions to the next banking day and other entries to the previous banking day. Travel expenses and salaries per day are not moved.

Keywords: cash flow forecast, liquidity, graphical representation, table view, forecast data, company financial management

 

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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