Maintaining solvency is one of the most important tasks of a company and therefore the aim of liquidity planning. Recognizing the development of liquidity and planning it with foresight is an important factor for the success of the company.
Factors to consider when planning liquidity:
- Expenditure incurred at the present time
- Planned expenditure
- Revenue generated at the present time
- Expected income
- Current cash in hand/bank balances
In order to be able to plan ahead, it is important to keep an eye on financial resources at all times and to ensure continuous and consistent monitoring of liquidity development.
Dynamics 365 Business Central (NAV) provides the necessary tools.
Careful cash flow planning helps you to properly control cash flows in your company.
Cash flow planning is fully integrated into Dynamics 365 Business Central (NAV) and always accesses up-to-date data from the areas of purchasing, sales, service, chart of accounts and all other relevant departments.
In Dynamics 365 Business Central, you can specify how often the planning should be updated. Even an inventory forecast is possible. With the "Cortana Intelligence" function, which simply needs to be activated, documents with a due date in the future are taken into account. This gives you a more comprehensive forecast.
Below you will find brief instructions on how to use the cash flow planning set up.
- In the Accountant Role Center under Cash Flow Planning, select the action "Supported device" from.
- If necessary, fill in the fields accordingly.
- In the search function, enter "Cash flow planning" and select the corresponding link.
- On the page "Cash flow planning" select the action "Calculate planning according to" from.
The more data available and included in the calculation, the more accurate the forecast will be.
Another useful function is the diagrams in the accountant role center, which give you an overview of cash in circulation, income and expenditure, cash flow and cash flow planning.
The cash circulation and income and expenditure charts are based on the chart of accounts and the account schemas, which you can in turn change or add new accounts, such as G/L accounts, to the chart of accounts. These are imported from "QuickBooks". The accounts are displayed on the "Chart of accounts" is assigned to the account scheme name.
Account scheme name and its use:
I_CACYCLE - Cash in circulation
I_CASHFLOW - Cash flow
I_INCEXP - Income and expenditure
I_MINTRIAL - P&L accounts if the chart of accounts is not used
Would you like to use Dynamics 365 Business Central in your company in the future or are you already using Dynamics NAV and would like to optimize your liquidity planning?
Get in touch with us! Our consultants will be happy to support you or answer any initial questions you may have.
