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:
Microsoft Dynamics NAV with the CRONUS International Ltd. demonstration database installed.
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 International Ltd. 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
In the Search box, enter Account Schedules, and then choose the related link.
In the Account Schedule Names window, on the Home tab, in the New group, choose New to create a new cash flow account schedule name.
In the Name field, enter Forecast.
In the Description field, enter Cash Flow Forecast.
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
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 Account Schedule.
In the Account Schedule window, enter each line exactly as shown in the following table.
Note
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 Totaling Type Totaling Row Type Amount Type Show R10
Receivables
Cash Flow Entry Accounts
0010
Net Change
Net Amount
Yes
R10
Open sales orders
Cash Flow Entry Accounts
0020
Net Change
Net Amount
Yes
R10
Rentals
Cash Flow Entry Accounts
0030
Net Change
Net Amount
Yes
R10
Financial assets
Cash Flow Entry Accounts
0040
Net Change
Net Amount
Yes
R10
Fixed assets disposal
Cash Flow Entry Accounts
0050
Net Change
Net Amount
Yes
R10
Private investments
Cash Flow Entry Accounts
0060
Net Change
Net Amount
Yes
R10
Miscellaneous receipts
Cash Flow Entry Accounts
0070
Net Change
Net Amount
Yes
R10
Open service orders
Cash Flow Entry Accounts
0080
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
VAT 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.
Choose the OK button.
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 fiscal year.
Finally, he assigns the column layout as the default column layout for the account schedule Forecast.
To set up a new column layout
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.
Create a new column layout with the name Cash Flow.
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 Fiscal Year
Entire Fiscal Year
Entries
Net Amount
Always
Choose the OK button.
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
In the Account Schedule Names window, select Forecast in the Name field.
In the Default Column Layout field, choose the column layout Cash Flow to assign as the default column layout.
To view and print the cash flow forecast
In the Account Schedule Names window, on the Home tab, in the Process group, choose Overview to view the cash flow forecast.
In the Acc. Schedule Overview window, 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.
On the Actions tab, in the Functions group, choose Print to print the cash flow forecast.
See Also
Tasks
How to: Create New Account Schedules
How to: Set Up Account Schedule Rows Manually
How to: Set Up Account Schedule Columns Manually
How to: Assign Predefined Column Layouts to Account Schedules
How to: Create Account Schedule Columns That Calculate Percentages
How to: Set Up Account Schedules with Overviews