Coresystems presents another important tool for SAP Business One: The coresuite liquidity package, which helps to keep an eye on the company's cash flow.
Manage cash flow proactively
The coresuite liquidity package is aimed at companies that want to proactively manage their liquidity. With the coresuite liquidity package, SAP Business One users can create forecasts (liquidity forecast), carry out historical analyzes (cash flow statement) and calculate the average payment delay of their customers (customer payment behavior). This delay in payment can be taken into account in the liquidity forecast. In contrast to the standard SAP cash flow report (Modules > Financials > Financial Report > Actual Reports > Cash Flow), the liquidity forecast can also include orders, purchase orders, deliveries, parked documents and all other SAP documents.
Installment payment in terms of liquidity
With the function for defining installments, you can split purchase or sales documents into several installments before creating the invoice document. This allows you to distribute large cash outflows or cash inflows over different periods.
The coresuite liquidity package consists of three reports and the function for defining rates. The three reports are:
- cash flow statement
- Customer payment practices
- liquidity forecast
Why managing cash flow is so important
With an accurate cash flow statement, you'll know exactly how much cash is available to you at any given time. This is crucial because all the plans and decisions you make must be backed by accurate information. If you don't manage your cash flow carefully, you could make bad decisions that put your business at risk. You may feel like your company is doing well, but a cash flow statement might show that the company isn't making a lot of money in any given month. This could be because you haven't invoiced customers. Whatever the reason, with an updated cash flow statement, you know you don't need to make any major purchases at this point.
When you manage your cash flow effectively, you get a better view of what you're spending your money on - something that's in a Profit and Loss Account is not to be found. It's important to know exactly where the money you're spending is going and why. It's not always easy to see expenses in black and white, which is why managing cash flow effectively is so important. You may be able to identify areas of the business where you can save costs.
If you're struggling with cash flow, you may not have the funds to pay your suppliers. This can affect business relationships with your suppliers and damage your overall reputation. Establish payment plans to ensure you have the financial resources to pay your suppliers. It's important to plan ahead so you don't face multiple bills at once that you don't have the funds to pay.
Growing and expanding your business is exciting. It means new markets, new employees and more revenue. But a word of warning. If you expand at the wrong time or in the wrong way, you're likely to run into problems in the long run. Growth requires a lot of money. Buying inventory, renting buildings, hiring employees, and buying computers—all of this has to be done before the money comes in. If you don't have the funds needed for your growth, you will run into problems. If you manage your cash flow effectively, you will know when the time is right.
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