Working With the Balance Sheet Trending Reports
The Balance Sheet Trending card contains the following forms:
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Days Sales Outstanding
For more information, see Forecasting With Days Sales Outstanding.
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Days Inventory Outstanding
For more information, see Forecasting With Days Inventory Outstanding.
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Days Payable Outstanding
For more information, see Forecasting With Days Payable Outstanding.
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Balance Sheet Movement Adjustment
For more information, see Submitting Final Adjustments to the Balance Sheet.
The Balance Sheet Trending card also includes the Cash Cycle Dashboard. The Cash Cycle dashboard displays the revenue, working capital, and cash conversion cycle trends. For more information, see Analyzing Trends in the Cash Cycle Dashboard.
Finance executives monitor and review the balance sheet and project future working capital closing balances and monthly movements. They use the Balance Sheet Trending forms to project the closing Accounts Receivable, Inventory, and Accounts Payable balances. Finance executives do this by entering the estimated days outstanding and percentages of sales and purchases on credit.
Additionally, finance executives enter monthly movements or additional asset and liability Accounts, either manually or based on trends. They also have the option to apply a percentage increase or decrease and make final Balance Sheet monthly movement adjustments. Finally, finance executives review the Cash Cycle Dashboard and analyze primary cash drivers and key financial metrics to identify trends.