Cash Flow Forecasts in Microsoft Dynamics NAV 2016 – How to create, setup and predict cash flow

Hello everyone, thanks for your time. My name is Christos Pittis, and I am a Microsoft Dynamics NAV Consultant. In this episode, I am going to show you how to create and setup Cash Flow Forecasts in Microsoft Dynamics NAV 2016.
Understanding cash inflows and outflows are the keys to running a successful business. You can use cash flow to create easily a short-term forecast that predicts how and when you expect money to be received and paid out by your business. It is important for you to know that your business will have enough cash to pay creditors and expenses when they fall due.
Open your Microsoft Dynamics NAV 2016 client, go to the Departments menu, Cash Flow, Chart of Cash Flow Accounts. You can use the one included in the Cronus demo database, or you can create a new one based on your company’s needs. In the cash flow forecast, the individual values that affect the cash flow of your company are arranged by using cash flow accounts.
The formula is quite basic: (RECEIPTS – PAYMENTS) +- CASH IN HAND

Check the Receipts section










Check the Payments section


Check the Surplus calculation
No. Name Account Type Totalling
2000 Total of Surplus End-Total 0002..2000


In this example, is 5,066,879.16 - -3,394,786.10 = 1,672,093.06
Lastly, you take into account the Cash in hand.


Total of Surplus +- Cash Flow Funds = Total Cash Flow

Consequently, the Total Cash Flow field shows the answer you are looking for a particular period of time.

Cash Flow Funds (Cash in hand) is a group of accounts taken directly from the Chart of Accounts.



Go to the Departments menu, Cash Flow, Setup, Cash Flow Setup.

We must establish which cash flow accounts should be used for the entries in the areas of general ledger, purchase, sales, service, and fixed assets.
Make sure you have the ACCOUNTING MANAGER role.



Click on the HOME menu and have a look at the Chart Flow Chart. In my example, it’s empty at the moment, and it will appear there by the end of this exercise.
Go to the Financial Management menu, Cash Flow and Cash Flow Forecasts.

Hit the New button on the top so to create a new one. Tab away to get a number automatically and then type into the Description field. For example, “Cash Flow Forecast 2017”.
Select the Consider CF Payment Terms check box to use the Cash Flow Payment Terms Code that is set up for a customer and the Cash Flow Payment Terms Code that is set up on a vendor. If the check box is not selected, the payment terms from the posted customer ledger entries or vendor ledger entries and the sales, service, or purchase orders are used.
Select the Show in Chart on Role Center check box to display the cash flow forecast chart on the Role Center.
Manual payments cover both manual revenues and manual expenses. In the Manual Payments From field, enter the start date from which manual revenues and manual expenses should be included in the cash flow forecast. In the Manual Payments To field, enter the last date of which manual revenues and manual expenses should be included in the cash flow forecast.
Click OK.

Go to the Departments menu, Cash Flow and Cash Flow Manual Revenues. Click on it.
You can record manual revenues. Manual revenues are items such as rental income, interest from financial assets, or new private capital. In the Recurring Frequency field, you can enter 1M to record the rental revenue on a monthly basis, or 3M (Quarterly basis), etc.
Go back to Cash Flow and click on the Cash Flow Manual Expenses page. You can record manual expenses. Manual expenses are items such as salaries, interest on credit, or planned investments. The same logic applies here regarding the setup options.
In this video, I am creating a manual expense so you can see how easy it is. Click on the New button on the top and create a new line. In my example, I did the following:

Code = ME04
Cash Flow Account No. = 1110
Description = Other Expenses
Starting Date = 01/01/2017
Ending Date = 31/12/2017
Recurring Frequency = 3M
Amount = 1,000

Click OK.

Find the Customers page, locate a customer and visit the Payments fast tab and enter a value in the Cash Flow Payment Terms Code field.
In real life, customers sometimes, delay the payments so you can put a more realistic value in that field to be included in your Cash Flow projections.
Click OK to close the Customer Card.



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Christos Pittis
Microsoft Dynamics NAV Consultant







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