Question

Forecasting the receivable management ​

Answer 1

To forecast your accounts receivable, click on the Forecast tab,

then click Cash Flow Assumptions: First, estimate the portion of your overall sales that will happen on credit - that is, invoices that your customers will pay later, rather than paying you in cash at the time of purchase.

Answer 2

Using the formula for their respective days outstanding, we can forecast future accounts receivables, inventory, and accounts payables. The following are the formulas for annual days outstanding: Accounts Receivable Days = Average AR / Sales Revenue x 365. Inventory Days = Average Inventory / Cost of Goods Sold x 365.

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