Core Financial Modules

[SPyle]

We have stopped using the cash expectations report, which could be very useful if it was accurate.  We have about 3% of our AR come in over 75 days and 25% comes in between 45 days and 75 days.  This is very consistent and the AR accounts with an average day to pay of about 85 are very consistent.

So why does the cash expectation report show all of my AR expected to be received in less than 4 weeks?  Is there some setting I'm missing?  Yes - my terms are net 30, but unfortunately that doesn't mean too much any more.

Also, I have two accounts we haven't written off yet that are over 150 days.  Shouldn't the cash expectations report have these listed as "probable lost cash"?

[TomTarget]

The joys of forecasting.   Any forecast is only as good as the assumptions used.  

There is an option to use the Average Days to Pay field to modify.  That would probably account for the collections patterns not fullowing the terms.   Have you tried that? 

As to everything being under four weeks, have you adjusted the cash expected as of date?  

 Not really clear how past due items are handled.   My assumption is they would be treated as if they were going to come in immediately for lack of any way of flagging them as uncollectible.    For example,  in the ABC demo company which is set for 5/2010:   If you run it with a cash expected as of date as of today, everything ends up in the first payment due bracket because everything is past due.   Running the same report using 5/31/2010,  the items get spread out over the brackets as you would expect.

[SPyle]

Tom,

Thanks, but I don't see that item in AR or GL.  I'm on 90.  It that, perhaps, a 200 option?

[TomTarget]

There should be no difference between 90 and 200. In any event I noted it 90 on version 4.5.

Looked back to 4.3 and it is there as well. Didn't look back any further. It,s a check box when you run the report, not in setup options.