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

Iorecast

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

Popefully, Lhls arLlcle wlll serve as a Llckler.

Conslder havlng cash forecasL as deLalled as you need for effecLlve cash managemenL . a snapshoL of
sample cash forecasL ls shown below.

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

?ou can achleve Lhe above deLalllng by deslgnlng cusLomer proflle classes and suppller Lypes / pay group
/ prlorlLy. l am sharlng some of my LhoughLs below.

Screenshot 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 fllLerlng Lhe daLa. Pence,
operaLlonal cash forecasL requlremenL may lnfluence Lhe deslgnlng of cusLomer proflle classes.

Lxample: ulsplaylng expecLed cash lnflows from key CusLomers and SMLs as dlsLlncL llnes may
quallLaLlvely lmprove Lhe cash forecasL.

Screenshot of parameters ava||ab|e for sources types 'Supp||er Invo|ces' |n Cash Iorecast


1here are opLlon of Lhree parameLers Lo choose from . ay Croup, aymenL rlorlLy and Suppller 1ype.
lf you lnLend Lo use suppller Lype for classlfylng 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
ay Croup or aymenL rlorlLy or
Suppller 1ype

My personal preference ls ay Croup. ?ou can asslgn Lhls aL suppller level Lo defaulL Lo LransacLlon and
modlfy as requlred whlle enLerlng Lhe LransacLlon ln A module.

Lxample: Asslgn a defaulL pay group represenLlng Lhe suppller Lype ln Lhe suppller masLer. updaLe lL as
requlred whlle enLerlng an A lnvolce - say asslgn a pay group for payable by LeLLer Cf CredlL. 1hls wlll
help show dlsLlncL llne as payable Lo banks ln Lhe cash flow . as deplcLed ln Lhe above cash forecasL
screenshoL. 1hls wlll asslsL ln prlorlLlzlng Lhe fund dlsbursemenL.

Conc|us|on
1ake a hollsLlc approach . gaLher cash forecasL buslness requlremenLs LogeLher wlLh scoplng of
cusLomer proflle classes and suppller Lype or pay group / paymenL prlorlLy.