Castaway's 3-way model is built on the double-accounting principle, which means that all the values generated in Castaway have logic built in them. As you review your cash flow report, you may want to understand how the Opening & Actuals General Trade Debtors and General Trade Creditors are being calculated in the projected months, and perhaps even change the assumption.
You can review and adjust these collection/payment terms by following the steps below:
- Go to Forecast > Opening & Actuals > Balance Sheet data
- Scroll to find your General Trade Debtors account and click on the 3-dot box
- A window will appear, allowing you to determine how you want to forecast the collection of the General Trade Debtors balance
- Click on the drop-down menu under the Input Method and select any of the following options:
Enter $: To manually enter your collection amount for each period
Use Days Credit: to set the collection based on the days' credit
Use Profile: To set the collection based on a percentage of the debt
- Go to Reporting and review your Cash Flow report
Note that any other accounts that have the 3-dot option in the Opening & Actuals space give you the same ability. Other examples include General Trade Creditors and General PAYG Payables.
It is needless to say that the cash flow terms you select here can affect the cash balance of your forecast and improve or worsen the cash position, so make sure you select the right input to get the most accurate outcome for your cash collection/payment.