To obtain the correct creditors payments, enter the prior month’s purchases in the left-hand block provided. To obtain the correct total for payments the prior Months Purchases must be entered. Enter the purchases including VAT. This is important where the payment parameters percentages require the information to calculate payments correctly.
Please note that the last month is before the start of the current year. The month prior to the start should be the last cell and then work backwards as in the screen above!
Percentage Payment
When completing the debtor payment assumptions, it is necessary to enter the terms based on past experience or how creditors are going to be paid so that cash flow can be maintained. E.g., It may be that debtors pay on a 60-day basis. Estimate how the debtors pay on this screen.
