Des|gn|ng of Customer rof||e and 5upp||er ay Group / r|or|ty / 5upp||er 1ype for purposefu| Cash

Iorecast

Manv a Llmes, flnance funcLlonal consulLanLs do noL conslder Lhe ramlflcaLlon of cusLomer and suppller
parameLers deslan on cash forecasL.

Popefullv, Lhls arLlcle wlll serve as a Llckler.

Conslder havlna cash forecasL as deLalled as vou need for effecLlve cash manaaemenL . a snapshoL of
sample cash forecasL ls shown below.

Cash Iorecast - deta||ed from customer and vendor perspect|ve

?ou can achleve Lhe above deLalllna bv deslanlna cusLomer proflle classes and suppller Lvpes / pav aroup
/ prlorlLv. l am sharlna some of mv LhouahLs below.

5creenshot of parameters ava||ab|e for sources types 'Customer Invo|ces' |n cash forecast


lease noLe - CusLomer roflle Class ls one of Lhe parameLers avallable for fllLerlna Lhe daLa. Pence,
operaLlonal cash forecasL requlremenL mav lnfluence Lhe deslanlna of cusLomer proflle classes.

Lxample: ulsplavlna expecLed cash lnflows from kev CusLomers and SMLs as dlsLlncL llnes mav
quallLaLlvelv lmprove Lhe cash forecasL.

5creenshot of parameters ava||ab|e for sources types '5upp||er Invo|ces' |n Cash Iorecast


1here are opLlon of Lhree parameLers Lo choose from . av Croup, avmenL rlorlLv and Suppller 1vpe.
lf vou lnLend Lo use suppller Lvpe for classlfvlna suppllers for oLher buslness purposes, conslder elLher of
Lhe oLher Lwo parameLers Lo caLer Lo cash flow forecasL.
ueflne mulLlple llnes for
CusLomer lnvolce source wlLh
dlsLlncL values ln roflle class
ueflne mulLlple llnes for Suppller
lnvolces source wlLh dlsLlncL values ln
av Croup or avmenL rlorlLv or
Suppller 1vpe

Mv personal preference ls av Croup. ?ou can asslan Lhls aL suppller level Lo defaulL Lo LransacLlon and
modlfv as requlred whlle enLerlna Lhe LransacLlon ln A module.

Lxample: Asslan a defaulL pav aroup represenLlna Lhe suppller Lvpe ln Lhe suppller masLer. updaLe lL as
requlred whlle enLerlna an A lnvolce - sav asslan a pav aroup for pavable bv LeLLer Cf CredlL. 1hls wlll
help show dlsLlncL llne as pavable Lo banks ln Lhe cash flow . as deplcLed ln Lhe above cash forecasL
screenshoL. 1hls wlll asslsL ln prlorlLlzlna Lhe fund dlsbursemenL.

Conc|us|on
1ake a hollsLlc approach . aaLher cash forecasL buslness requlremenLs LoaeLher wlLh scoplna of
cusLomer proflle classes and suppller Lvpe or pav aroup / pavmenL prlorlLv.