Using Figurewizard - Forecasting Payments to Suppliers

How figurewizard calculates cash flow from payments made to suppliers of goods for resale.

How Cash from Accounts Receivable is Calculated

The following example explains how the values of monthly payments to suppliers  you buy from on open credit are entered. The values of the payments are calculated by our system from the percentages you enter in the form as the following example shows:

Assume a year in which we have calculated from the figures you have entered in the form that the value of your annual purchases of goods for resale, including the VAT we have added where applicable amounts to £100,000.

Month Ref: Average Monthly % Paid to Suppliers i.e. Cash Paid
Month 1 5% £5,000
Month 2 50% £50,000
Month 3 30% £30,000
Month 4 15% £15,000
Totals 100% £100,000

Exactly the same procedure applies in respect of cash payments to accounts receivable for suppliers of overhead services.

Payments by Letter of Credit (L/C)

Note that we only apply this to suppliers you deal with on open credit. If your business buys goods by letter of credit, all that is needed is to select the percentage of annual purchases you make by letter of credit and the average number of months between issuing them and receiving the goods. Our system does the rest.

Cash Collection from accounts receivable works in exactly the same way as payments to suppliers - is a free Site.

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