The Predict home screen is easy to scan, headlines your predicted cash first and then separates your operations into your core activities: Sales, Cost of Sales and Expenses. They have two views and it’s essential that Predict tracks them for you. Put simply:

  • Activity: is when a sale or purchase happens. It shows net amounts (ex VAT/ GST) for predictions that are either created from Futrli Predicts rows or your predictions.

  • Cash impact: is when a sale or purchase is paid. It shows gross amounts (inc VAT/ GST) for when predicted activity will hit the bank or leave the bank. You can change the predicted payment settings for any prediction you have created. For Futrli Predicts rows, the cash impact is a live aggregated calculation from all historical payments for that account.

Example: For instance, I raise a predicted invoice for £1,000 on the 1st of July with 20% VAT (£200) = £1,200 invoice total, that I think will be paid in 45 days (as that's my current customer payment days average as calculated by Futrli Flow). I'll see £1,000 in the activity tab in July and £1,200 in the cash impact tab in August (within Predict they are stored on the exact days).

1/ Creating the Freestyle Prediction for £1,000, then hit the green tick.

2/ In the Activity tab, store on the 1st and leave the default at 20% VAT.

3/ In the Cash impact tab, you can select the Single payment option, but make sure the option to be paid on the same day is unchecked. You can then set the number of days to 45.

4/ The £1,000 will display in July when looking at Sales activity.

5/ When we switch to the Cash collected from sales view, we can see the £1,200 displaying against August.

Predict will then ensure that the VAT from this invoice is part of the VAT / GST period it applies to and adjust your predicted VAT/GST payment/rebate amount. You'll find the £200 in your Current Liabilities in your VAT control account.

But the amounts differ?

You may have sales that are increasing in an account in the Activity tab, when you flip to the Cash impact view for that revenue row, you may find out that you aren’t collecting the payments from customers in good time. You need to take action in chasing these customer payments. In this situation, activate Flow. It will monitor exactly this as well as further customer and supplier trends, risks and dependencies.

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