SAP Business One – Managing Cash Flow to Support Business

Find out how you can use SAP Business One software to manage receivables to accelerate cash flow. You can control expenses by defining an approval process, and leverage discounts and avoid late fees by timing payments.

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    • Everyone knows that a thriving business does not always mean a healthy cash flow. At all times, you need to know when payments are coming in, limit your expenses, and meet obligations to benefit your company. That’s where the SAP Business One application can help. See what happens when you’re able to: Manage receivables to accelerate cash flow, and Time payments to optimize your business. Choose a topic to learn more. SAP Business One gives you visibility and tools to help you bring cash into the company as quickly as possible. You get a personalized work center, where you can access critical information, and constantly monitor your accounts receivables to stay on top of your company’s cash flow. Let’s assume you receive an alert for a $21,000 vendor payment that’s due in three days. Click on the alert. You want to run a weekly cash flow report to see the cash on hand, up-coming collections, and other liabilities, to make sure you have enough money to pay the vendor on time. Click on “Cash Flow” under the Common Functions. The weekly report shows a $26,000 incoming payment from a customer – enough to cover the vendor invoice – but you were expecting to see $30,000 in cash this week. You notice that a $5,000 incoming payment you expected to receive seems to be coming in next week. Click on the date at the left. You can drill down to the invoice and review the payment terms for the transaction. Click on the yellow arrow next to “IN.” The applied payment terms give the customer credit for 15 days, but the default terms are for “cash only,” so you check the customer’s record. Click the yellow arrow next to “customer.” You realize the sales associate must have changed the payment terms from the default, which accounts for the late payment. To help you avoid similar situations in the future, SAP Business One lets you set up an approval workflow for sales documents. For a healthy cash flow, you want to bring cash in quickly and hold onto it as long as possible without incurring late fees. SAP Business One helps you handle payments effectively, deciding what you want to pay, and how and when you want to pay it. Click “Next.” First, you select the payment method you’d like to use. Click ‘Next.” You want to pay on time, but not too early, so your goal is to focus on invoices due in the next few days. And, you want to see if you can get a discount by paying early, so you pull invoices that are due in a month. Click next. You can see your bank accounts and associated cash balances on the same screen, so you won’t overdraw cash from your accounts. Click the box next to “code” to select the outgoing payments from your accounts. You get a report showing all the open invoices you need to pay for the selected period, including due dates, overdue status, and the money you can save by paying early. Even though you still have a month to close two of the invoices, you want to pay them now to get discounts for early payment. Click above the check boxes. Click next. You can choose to make the payments right now or save the report for further review. As you can see, SAP Business One gives you the control to time payments to benefit your business.
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