This screen shows the position of local creditors which come from purchases including costs of overseas purchases where applicable which also include the disbursements costs when the goods have landed. See purchases parameters and payment parameters which will allow you to set the parameters of how you pay these local creditors.
Creditors Liabilities
Trade Creditors
This reflects the Trade Creditors schedule.
Current Liabilities
This reflects the commitment to overseas suppliers. Figures will appear in this screen where you have indicated purchases from overseas suppliers. See Overseas Purchases Parameters. As far as cash flow forcaster is concerned there are 2 ways of handling purchases from overseas supplies:
1. Purchase goods on open account. This means you pay in accordance with your normal credit terms.
2. Purchase goods by establishing letters of credit. This means you furnish a bank guarantee to pay you place the order.
If you are purchasing in accordance with 1 above there is really nothing further to do. Set the payment parameters and review the payments made on this schedule.
If you are purchasing overseas goods by way of letters of credit or LC, the purchases first start when you place the order, because it is at this point that you have to establish the LC or comitment and this comes off your bank facilities. In order to do this you need to start by completing the screen Letters Of Credit. The next step is when the goods arrive you receive the goods at Overseas Purchases Parameters and this causes the goods to flow into the overseas creditors schedule
Note on the top of the Overseas Creditors screen a percentage cell
0.00%
This Percentage will transfer the overseas creditors purchase into the Bills Payable schedule. If this is 100% then the full amount owing to the overseas creditors will be transferred to Bills Payable. After this process the assets and liabilities are part of the books.
Adjustment
This allows you to adjust payments to overses creditors at will. Remember this is where you purchase on open account. Bills Payable
This reflects the schedule of Bills Payable. The payment details will be worked out in the Overseas Payment and Bill Payment Parameters.
Current Liabilities
The cell on the first line is where you can enter the firms LC facility limit. Please note that the firms facilities used are the overdraft as well as letters of credit established. You also have a space to enter the Opening balance LCs that have not arrived.
Where you are purchasing overseas goods by way of letters of credit or LC, the purchases first start when you place the order, because it is at this point that you have to establish the LC or comitment and this comes off your bank facilities. At this point the bank issues a gurantee to the overseas supplier. There is no book entry that effects your books at this stage. In order to do this you need to start by completing this screen. You will note that the order column is populated by goods already covered by LC. In other words the system is working on a replacement basis. You of course can manipulate this according to you exact requirements.
The LC Facility screen also indicates by what amount bank facilities will be reduced by, as well as what you can buy without exceeding your LC facilities.
Factoring Loan
This reflects the Factoring Loan account.
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Cash Flow Forecaster
Input Fields
Enter the amount to be repaid to the factoring house as you receive the money from debtors. The system automatically does a calculation of what needs to be repaid on the factoring loan.
Interest Rate %
Enter the rate charged by the factoring house under expenditure interest rates.
The factoring costs utomatically increases the perecentage of the loan.
Accruals
This sheet shows the movement of expenditure in terms of cash paid. Not all expenditure is paid on a cash basis. This option will help determine what is paid for on a cash basis and what is carried forward to the next month as a creditor.
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