Cash Management

The broadly understood cash management concerns not only cash or bank cash collections, but also the import and export of bank statements, which allows for more effective accounting of the company’s cash assets.

Cash Register Management

In handling cash transactions, it is important to be flexible and check the amount of cash available at the cash desk. Microsoft Dynamics NAV includes a cash management module that provides the most optimal and customized handling of cash transactions.

Bank Statements Register

During the account statements, it is important to check the balance of the bank account on an ongoing basis. In the ERP system, the Bank account statement is available, which presents the initial balance, balance of operations entered and the expected balance after posting, both in the account currency as well as in the local currency. In addition, the Bank account statement facilitates in the transaction records and settlements settlement.

Calculation and Booking of Exchange Differences

Pursuant to the provisions of Polish law, the withdrawal of cash in a foreign currency from the cash register and bank accounts should be converted according to the exchange rate of the inflow of cash in a foreign currency to the cashier or into a bank account. This means that the equivalent of the payment in the local currency should be based on the equivalent of the related influence in that currency. This process is very similar to the method of inventory valuation. Acceptable methods of settling cash withdrawals with receipts are practically the same: FIFO, LIFO, average. The most commonly used method is FIFO, which is why the revaluation of cash withdrawals in currency is based on it.

Electronic Banking

Most of the banks present on the Polish market offer software enabling the introduction of transfers at the company’s headquarters and their transmission in electronic form to the bank. Electronic banking is a module that streamlines the introduction and sending of transfers to software provided by the bank. In addition, this module allows you to import a file with bank statements to Microsoft Dynamics NAV 2016 and their automatic settlement.

Forecasting Cash Flows

In order to ensure financial liquidity, companies must have planning tools. Based on the analysis of cash assets from the previous period, the program creates a periodic statement and calculation of expected revenues and operating expenses. Then, the excess or deficit of cash is calculated. On the basis of the results obtained, you can make adjustments – for example, reduction of the loan in the case of a surplus or incurring a loan in the case of a deficyt.

Cash flow forecasts can be analyzed using the sheets of accounts and forecast statistics. In addition, cash flow is a general statement of the company’s cash assets, which can include cash balances, funds on demand, checks or giro funds. Other assets such as securities and receivables have an impact on cash flows. Their impact depends on various cash liquidity ratios. The cash liquidity ratio, in turn, depends on the moment of conversion of the asset into the currency through sale.

When planning, you can use values from application areas, such as General Ledger (Q/G), Sales, Purchase, Service and Fixed Assets. The main book contains information on available liquid funds and the company’s budget values. In the area of Purchase of current values of open liabilities and expected liabilities from open purchase orders. The Sales area contains information about current open receivables and expected receivables from open sales orders. Service area provides information on open lines of service orders that the program transfers to the cash flow forecast. If the planned sale / liquidation was registered in the area of Fixed assets and future purchases were budgeted, these values can also be included in the calculation of cash flows.