Cash flow
Cash flow management principle
Cash flow includes all financial transactions performed in the system. In addition, we collect bank statements to obtain a final balance and make adjustments to the transactions performed in the software.
There are "interim operations" that are not reflected in bank statements but are reflected in cash flow, for example: receiving supplier invoices or issuing a customer invoice. Cash flow will show the interim transactions according to the payment date set in supplier or customer cards, based on the document date as the base date. After we associate payments with invoices, we will stop seeing their impact and will only see the payments in cash flow.
Actions such as paying a supplier or issuing a receipt to a customer are reflected in bank transactions, and therefore we can reconcile them with bank transactions, so that we can cancel their effect on a future balance, because they already appear on bank statements and affect the balance.
The goal of the users is to go through all the expected transactions and check that they are indeed expected and have not yet been reflected in the bank statements. Once the transaction is reflected in the bank, its effect on the future balance is neutralized.
In a situation where we have postponed an expected payment to a supplier or in any other case, we can easily change the future execution date in the cash flow lines.
Additional actions
Reconciling with bank transactions
ביצוע התאמה בין קבלות או תשלומים לבין תנועות בדפי בנק על מנת לבטל את השפעה על יתרה עתידית ועל מנת לוודא שאכן הפעולה בוצעה בבנק.
ההתאמה בין תשלומים וקבלות לבין תנועות בנק יוצרת גם התאמה בבנק, ככה לא צריך לעבוד כפול בהתאמות בנקים.
שיוך בין קבלה לחשבונית או בין תשלום לחשבונית תבצע התאמה בכרטסת אם שניהם שווים מבחינת הסכום.
Defining fixed expenses/income
Cash flow management allows you to add fixed expense or income transactions with different frequencies that affect cash flow. For example, you can add standing orders that are supposed to go to the bank or add some revenue forecast.
The frequency is determined by one of the following and includes a start date and an end date:
Every day - Once a week - Once a month - Once a year
After identifying an execution in the bank statements, an adjustment is made and the effect of a permanent movement reflected in the bank statements is eliminated through automatic accounting posting.
Characterization of expenses in cash flow
1. Account confirmation for a service provider
When we approve an account for a service provider based on a contract that has been received, we can see it in the flow as a payable, according to the Current+ definition in the service provider card.
2. Receiving a supplier invoice
A supplier invoice will appear as an expected expense according to the Current+ settings on the supplier card. If we have made a partial payment for an invoice, we will only see the remaining debt to be paid.
3. Payment report
Any check issuance or other payment report will immediately appear in the flow. After updating bank statements in the system, we can reconcile the payment with bank transactions.
Characterization of income in cash flow
1. הפקת חשבוניות חיוב
עם הפקת חשבונית עסקה ללקוח היא תופיע בתזרים מזומנים על פי מועד תשלום שהוגדר ללקוח כאשר תאריך חשבונית עסקה ישמש כבסיס.
2. Submitting a billing invoice to the customer
After submitting an invoice to the customer according to an aggregate contract that has been entered into the system, it will be possible to see its impact on the cash flow based on the current+ data that we have determined for the customer.
3. Producing a tax invoice
Generating a tax invoice for a customer generates a future cash flow movement based on current+ data in the customer card and based on the tax invoice date as the base date.
4. Receipt generation
A receipt is associated with a tax invoice that we generated. This way, we neutralize the impact of the tax invoice on the flow and only see a receipt that should be matched against a bank transaction.