You can use Cash Flow Management to predefine 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 / adjust transactions, such as deposits, payments, and reconciliation adjustments that are not part of the checkbook balance.
Cash Flow Management is installed automatically when you install Microsoft Dynamics™ GP.
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
Cash flow 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 Microsoft Dynamics GP) let you see what effect actual transactions will have on your cash flow.
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 Microsoft Dynamics GP) to see what effect these transactions will have on your cash flow.
Using the Cash Flow Calendar window
The Cash Flow Calendar displays inflows and outflows based on the default forecast you set up in the Cash Flow Forecast window. You can use the Cash Flow Calendar to scroll to different months, or to open to a specific day and view your transactions.
In the Cash Flow Calendar, outflows appear in red, inflows appear in blue, and the balance to date is shown in black.
You may be asking yourself how can I think about spending money on a new ERP system in this economy?
The truth is, it‘s the perfect time to replace your inefficient, out-dated local software system with a new one that provides easier and better access to the critical information that will help your business jump ahead of the competition as the economy moves out of the current recession. Companies often upgrade to new software when they are busiest and feel the pain of limitations of their older system the most – but that is when they have the least time and resources available to make the change and learn how to take advantage of the new capabilities.
If you’re struggling with an ineffective system yet are reluctant to make a change because you think it will cost too much and/or it will be too disruptive, think again. Now, when business is less hectic, is the time to prepare for the coming recovery. And it may be a lot more affordable than you think.
We see a lot of companies investing in new technology now. If you’re a growing business looking to move from other systems such as Sage MAS 90 or 200, read more on how other companies have benefited from investing in a more advanced ERP system such as Microsoft Dynamics GP.
Pakistan today, is facing an unprecedented power shortage problem. Schedule Power blackouts, locally know as “Load Shedding”, are a common misery amongst the public as well as businesses. As a business owner / management team member this is a frustrating situation to be in, as it haves a direct effect upon your business productive is beyond your control to change the circumstances. So what should you do to keep your business afloat?
- Recognize that this is a Long Term problem. Despite, what you may read or hear in the media from various public officials, Load Shedding is here to stay!
- Recognize that the loss in productivity in your business does not necessary mean that your costs have decreased. You’re still paying employees to sit ideal during load shedding time, your still receiving electricity bills etc.
- Recognize that you need to make up the shortfall in productive by improving the efficiencies of your people and processes. Find ways for your employees to do more with less, take apart your current business processes, reengineer them to be faster and simpler.
- Recognize that Technology can help you improve the efficiencies that you target to improve.
From the technology viewpoint, ERP / Accounting Business System packaged software’s are generally and genuinely able to offer you a path to improvements in business critical functions like operations, supply chain management and finance. These software solutions are designed to integrate ALL of your business processes allowing you to design and implement organizational wide, “Ways of Doing Things”. Let’s take an example:
Purchase Order Controls
Many companies today are still “casual” in their controls around employee purchases. Their purchase approval process remains a manual, paper-driven process. With a lack of control and automation, employees may make purchases first and submit the expense for reimbursement after the fact. Managers may spend time following up with employees and asking them to write up a request, even though the items are already being used. This type of outdated purchase approval process can create budget overruns leading to unexpected expenditures.
In using an ERP packaged solution, for example Dynamics GP. You could use the web-based Requisition management solution to help increase control and visibility over the entire purchasing process. With Requisition Management, your employees can enter purchase requests online for manager approval. Requisitions are then automatically transferred to new or existing purchase orders in Purchase Order Processing. Management has visibility into employee purchase requests before the purchase is made, so they can easily validate that the purchase requests are within budget before approving. This process helps reduce repetitive data entry and eliminates costly mistakes.
This is just one brief example of how using an ERP may help drive up efficiencies to make up for the losses in productivity that you face. My last piece of advice: It’s easy to get frustrated with any critical business issue you may face , so be diligent about recognizing the problem and know that there are many sources of help available to you to.
