When using the P&L to cash module, we will convert the amounts of this accounting view into cash flow forecasts. But how?
VAT
You'll have to set up VAT, for Agicap to be able to add VAT to the amounts of your P&L. As the VAT will be setup at the Agicap category level, an average rate can be chosen. Do you want to learn more about how to set up VAT? Please go 👉 here.
Payment terms or deadlines
You'll have to choose which terms you want to apply to your forecast by category
⚠️ It is important here to model not the contractual delays but the actual ones, so you can modify slightly your payment terms taking into account delays
💡 Important to know: the calculation will be different whether you choose the deadline or the payment term option:
Payment terms (30 days, 45 days, 60 days, ...)
If a user chooses the payment term option, it will divide the total amount by the number of days of the affected month (e.g. January = 31 days) and then apply +x days (for example 30 days) to this amount and be affected in the resulting month.
Example :
-> Value for January 2024 is 4 167€ in the P&L
-> Let's say VAT is 20% on this category
-> Option chosen is Payment Term = 30 days
-> NB: There are 29 days in February 2024.
Let's include VAT: 4 167*1,2= 5 000,4€
5000,4/31 = 161,30€ per day
Value on Jan 1st + 30 days = 161,30€ on Jan. 31st
Value on Jan 2nd + 30 days = 161,30€ on Feb. 1st
Value on Jan 3rd + 30 days = 161,30€ on Feb. 2nd
…
Value on Jan 31st + 30 days = 161,30€ on March 1st
In the end, with the setting chosen, Agicap will display :
January 2024 = 161,30€
February 2024 = 4 677,7€ (= 161,30*29)
March 2024 = 161,30€
💡 If you want to take all the value of January and affect it completely to the next month (end of month for example), then you must use the deadline option with the “following month”.
Deadline (the following month, in 2 months, ...)
If we use the previous example again:
-> 4 167€ in the P&L in January 2024
-> 20% of VAT and deadline the following month
Let's calculate: 4 167*1,2 = 5 000,4€
👁️ Here the full 5 000,4€ will be put in February 2024.
Here is a recap of the whole calculation method:
Do you still have questions?
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