Whenever you create a prediction, think about its payment terms. When is the cash impact going to occur.
The default option for any manual prediction is the same day, i.e. whatever date the activity is set to, the payment for it will enter or leave your bank.
You may wish to override this in certain situations however: invoices that have credit terms, or expenses that you’ll pay for in two instalments with a deposit and final payment. This is where the other options come in.
How to access payment terms
To create different payment terms when creating a new prediction you’ll be prompted to go to the Cash Impact tab in the top right of a prediction window.
For any existing predictions that you have created yourself you can hit the edit pencil and choose Edit Settings.
If you are on the main Cash Impact tab, you’ll be taken straight there. If you’re on the main Activity tab you’ll then need to choose the Cash Impact tab in the top right of a prediction window.
Split payments give flexibility
Choose “Split payments” and you’ll be able to set rules for how many days after an invoice is raised, payment is received. If you expect full payment to be made 30 days after the invoice is raised, enter 30 days and 100% in the left column.
If you expect to receive a partial payment of half the due amount after 30 days, with the balance 30 days later, enter these details by filling in two columns, each with 50%.
Save your changes and in the Cash Impact tab and you’ll see the delayed impact of the cash hitting your bank account on the schedule you have specified.