Understanding the flow of incoming and outstanding cash is vital for any company. We need to know if we will have enough money to pay creditors and expenses when they are due. This is actually what the cash flow management functionality will tell us. We will see how to do this in this section.
The cash flow management functionalities analyze several sources of information to be able to predict cash needs. The sources that this functionality uses are as follows:
General ledger: This uses information about the liquid funds and also about the budgets we have seen in the previous section
Purchases: This uses information about the current payables and also forecasted information taken from open purchase orders
Sales: This uses information about the current receivables and also forecasted information taken from open sales orders
Service: This uses information about open service orders
Fixed assets: This uses information about planned disposal and budgeted purchases of fixed...
