Cash Requirements Forecast (DCRF)

Purpose: Use Cash Requirements Forecast to review the costs associated with your expected A/P purchases for the next 7 weeks. The cost is shown in the vendor's currency and in your default currency.

This on-line inquiry helps you to plan your cash outlay, based on the current conversion rate for each currency type. This gives you the ability to decide when to purchase the currency. If the exchange rate is favorable, you may purchase the currency prior to the expected receipt date; otherwise, you may monitor the conversion rate up until the due date to purchase the necessary currency at the lowest possible price.

Note: A zero value displays for each week on which no purchase orders are due to be received for a vendor.

Example: You place an order with a Japanese vendor that is due on 5/18/94. The purchase will cost you 78523 yen or $23, 795 United States dollars, based on the conversion rate of 3.3000000%.

If you feel that this is the lowest price at which you can purchase yen to pay the vendor for the merchandise, you may purchase the necessary currency before May 18.

If, however, you feel that the exchange rate is too high and you expect it to drop, you can wait until the due date approaches to purchase the currency.

The conversion rate is defined in the Currency record. You may update the conversion rate as changes occur.

In this topic:

• Cash Requirements Forecast Screen

• Forecasting by Due Date or Expected Date

• Change Currency Screen

• Display Currency Screen

Cash Requirements Forecast Screen

How to display this screen: Enter DCRF in the Fast path field at the top of any menu or select Cash Requirements Forecast from a menu.

MSR0519 DISPLAY Cash Requirements Forecast 12/27/99 9:47:06 KAL Co. Local Currency USD Opt Code 12/26/99 1/02/00 1/09/00 1/16/00 1/23/00 1/30/00 2/06/00 Type options, press Enter. 2=Change 5=Display BRT 0 0 0 0 0 0 0 84 0 0 0 0 0 0 CAN 0 0 0 0 0 0 0 982 0 0 0 0 0 0 USD 0 0 0 0 0 0 0 9837 0 0 0 0 0 0 + F3=Exit F7=Expected Date

Field	Description
Local currency type	Your default currency, as defined in the Local Currency Code (A55) field in the System Control file. For example, the local currency type is DOL (U.S. dollars) in the United States. Each currency defined on the system displays the cash requirements expressed in the vendor's currency and the local currency. Currency codes are defined in and validated against the Currency file; see Working with Currency (WCUR). Alphanumeric, 3 positions; display-only.
Code	A code that represents a type of currency. Each existing currency type is listed on this screen, regardless of whether there are pending A/P purchases. Currency codes are defined in and validated against the Currency file; see Working with Currency (WCUR). Alphanumeric, 3 positions; display-only.
Weeks 1-7	The 7 week columns display the A/P purchases for the current week and the following 6 weeks so that you may review the expected cash outlay for the next 1 1/2 months. The day of the first week in the cash requirements forecast represents the ending date. For example, if the first week is 5/11/94 and the second week is 5/18/94, the system displays A/P purchases due in the week between 5/12/94 and 5/18/94. Numeric, 6 positions; MMDDYY format, display-only.
Purchases-Vendor’s currency (Unlabeled row to the right of the currency code)	The whole dollar value of A/P purchases over a 7 week period, expressed in the vendor's currency. Numeric, 9 positions; display-only, calculated by the system.
Purchases - Your currency (Unlabeled row below the vendor's purchases):	The whole dollar value of A/P purchases over a 7 week period, expressed in your currency. Numeric, 9 positions; display-only, calculated by the system.

Screen Option	Procedure
Update the currency record by changing the description, date of last update or conversion rate	Enter 2 next to a currency code to advance to the Change Currency Screen.
Review the currency record	Enter 5 next to a currency code to advance to the Display Currency Screen.
Display the expected A/P purchases based on the purchase order due date or the expected due date	Press F7. See Forecasting by Due Date or Expected Date.

Forecasting by Due Date or Expected Date

Use the Due date/Expected date function to manipulate the cash requirements forecast based on the purchase order due date or the expected due date.

Selecting this function: Press F7 on the Cash Requirements Forecast Screen to change the view of the forecast, based on due date or expected date.

Due date forecast: The system uses the date in the Due date field on the Purchase Order header screen to determine which purchase orders are due each week in the Cash Requirements forecast.

Expected date forecast: The system uses this calculation to determine the expected date of an A/P purchase.

Due date from PO header + Gross due days in the Terms file = Expected due date

Change Currency Screen

Purpose: Use this screen to update currency information on which the forecast is based.

About Currency records: The Currency record defines the exchange rate used to convert your currency to your vendor's currency so you can pay your foreign vendors for purchases in their own currency type.

You must update the currency record each time the conversion rate changes. The conversion rate, or exchange rate, is the factor by which the system translates one currency type to another.

How to display this screen: Enter 2 next to a Currency record at the Cash Requirements Forecast Screen.

MSR0118 OPEN Change Currency 5/12/94 15:39:51 CommercialWare Currency code . . . . . : YEN     Description . . . . . . . JAPANESE YEN Date of last update . . . 091693 Conversion rate . . . . . 3.3000000 F3=Exit F10=Actions F12=Cancel

Field	Description
Currency Code	A code that represents a type of currency. Currency codes are defined in and validated against the Currency file; see Working with Currency (WCUR). Alphanumeric, 3 positions; display-only.
Description	The description associated with the currency code, such as U.S. DOLLARS. Alphanumeric, 30 positions; required.
Date of last update	The most recent date on which the currency conversion rate was updated. Numeric, 6 positions; MMDDYY format; required.
Conversion rate	The rate at which this currency type is converted to the base (local) currency. Currency conversion processing (converting your currency to your vendor's currency) occurs in PO Entry to translate your company's currency type to the vendor's currency type. The conversion also occurs in PO Receiving to convert the vendor's currency type to your company's currency type. The conversion rate must be updated each time the rate of exchange changes. Numeric, 11 positions with a 7-place decimal; required.

To change: Enter any changes you wish to make. You can change any field except the Currency code field.

Display Currency Screen

To display: Enter 5 next to a currency type at the Cash Requirements Forecast Screen to advance to the Display Currency screen. You cannot update any information on the Display Currency screen. See Change Currency Screen for field descriptions.