Setting Up Cash Inflow Driver Assumptions for Driver-Based Planning

Set up the assumptions for cash inflow drivers for driver-based planning.

Depending on how your administrator enabled the application, cash inflow drivers, along with their associated calculations and sample line items are included in the application. Cash forecasts for each line item are calculated based on the assumptions you define applied to the driver input.

Note:

These steps assume that cash Driver Input data has already been loaded, but you can enter or adjust Assumptions values or period values.

1. From the Home page, click Daily Cash Forecast, and then click Drivers - Cash Inflow. Depending on what your administrator enabled for the application, you'll see a dashboard for each driver method that was enabled, along with some sample line items.

   The dashboard provides a consolidated view of Driver Assumptions and Cashflow in a consolidated view.

   If you are forecasting at the periodic level, from the Home page, click Periodic Cash Forecast.

2. For each cash inflow category, described in the following steps, select the appropriate members in the POV, and then enter the driver assumptions. Save the form after entering assumptions, which triggers driver calculations for each of the driver categories and calculates cash inflow. You
3. For Revenue Receipts—Click Revenue Receipts.

   1. Set up the pay term assumptions by entity, line item, and other custom dimensions in the Assumptions form.

      Enter up to five Pay Terms and the Due Period for each. For example, 75% of your product revenue receipts comes in in three days, and the remaining 25% comes in in five days.

   2. Review, adjust, or manually enter the revenue receipts (the Driver Input).

   The cash inflow is calculated by applying the pay term percentage on the driver input and posting the cash inflow to the period buckets based on the due date.

4. For Project Receipts—Click Project Receipts.

   1. Set up project information including milestone and pay term assumptions in the Assumptions form.

   2. Enter the Percentage and Due Date for up to three project milestones (for all projects or for a specific project).
   3. Enter the Percentage and Due Period for up to five pay terms.
   4. Review, adjust, or manually enter the daily project receipts (the Driver Input).

   Cash flow is calculated applying the pay term on the milestone amount for the project. Milestone amounts are derived on milestone percentage for each project. The drivers are captured by project and the cash flow is calculated on the project.

   Tip:

   You can see information about any of the projects on the dashboard. In the Assumptions form, right-click a project and then select Apply Context. The Cashflow grid and chart are updated to reflect the selected project.

   You can view information at the All Project level. In the Cashflow grid or chart, click the drop-down Project list and select All Project.

5. For DSO Receipts—Click DSO Receipts.

   1. In the Assumptions form, review, adjust, or enter the Average DSO in the Assumptions column. Or or enter a DSO value for each day.

      (The value in Assumptions is always days, even in a weekly or monthly plan.)

   2. Review, adjust, or manually enter the DSO receipts (the Driver Input).

   Cash flow is calculated by applying the average DSO for the period on the period revenue or it by taking the average DSO across the year if the DSO by period does not exist.

6. Save the dashboard after entering assumptions, which triggers driver calculations for each of the driver categories and calculates cash inflow.

   Cash forecasts for each line item are calculated based on the assumptions you define, applied to the driver input. You can see all of the updated cash inflow forecasts in the Rolling Forecast form. See Performing Daily and Periodic Cash Forecasting.