Creating Cash Flow Plans

Outcome

A cash flow plan is created, showing the company's short-term changes in its cash flow, where cash will come from and how it will be spent.

The plan is printed and can also be reviewed in 'Cash Flow Plan. Open' (CFS200).

Use the plan as supporting documentation to control the short-term cash flow. You decide what action to take based on the information provided in the plan, according to the company's guidelines and policies: Short-term borrowing, holding payments to suppliers, making decisions on future short-term investments, etc.

The cash flow plan is saved in the cash flow file (FCFVER).

Before you start

• A cash flow budget must be created in 'Cash Flow Budget. Create from Budget' (CFS100).
• A cash flow model must be created in 'Cash Flow Model. Open' (CFS020).
• Financial transactions must be registered in any of the following M3 modules for the cash flow plan to be useful:
• Accounts Payable
• Accounts Receivable
• General Ledger
• Service Agreements
• Customer Order Processing
• Purchase Order Processing

Follow These Steps

1. Select Template and Budget for Cash Flow Plan

   Select a cash flow model and a cash flow budget in 'Cash Flow Plan. Open' (CFS200). The model is the template that controls what values are included in the plan. It does this by functioning as a filter when retrieving values for the cash flow plan.

2. Create Cash Flow Plan

   Create the plan in 'Cash Flow Plan. Open' (CFS200). Values from relevant M3 modules and the cash flow budget are automatically included, according to predefined standards and the user-defined cash flow model.

3. Verify Cash Flow Plan

   Check that the plan is correctly created by reviewing the values, either on screen in (CFS200) or as a print-out.

4. Adjust Input Values and Lines

   If you need to adjust the plan, modify the cash flow model by redefining account ranges or the lines to be displayed. When necessary, you can also adjust your cash flow budget. After this, create a new plan.