How you deal with Accounts Receivable and/or Accounts Payable accounts depends on the forecast type.
3 year cash flow
3 year cash flow
In the 3 year cash flow forecast, you can use predictions to reduce the Accounts Receivable and Accounts Payable balances.
In the example below, the Accounts Receivable has a balance of £45,300:
We're going to pay this off over the next 5 months with a new prediction. In this example we'll use a Freestyle prediction method to reduce the balance:
By doing this, you'll see the balance of the Accounts Receivable reduce to zero:
3 year cash flow with due invoices
3 year cash flow with due invoices
In the 3 year cash flow with due invoices forecast, the Accounts Receivable and Accounts Payable split into the specific unpaid invoices and bills that make up the balance.
In the example below, the Accounts Receivable has a balance of £63,690, while the Accounts Payable has a balance of £30,022:
In the Invoices tab, you'll see those balances displaying:
In this case, by setting the expected payment behaviour for the invoices in question, the Accounts Receivable and Accounts Payable will update.
📎NOTE: The Accounts Receivable and/or Accounts Payable accounts don't affect the 1 year P&L forecast, as this type of forecast doesn't show the balance sheet.