Stock and building stock not to be included in cash flows
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All done now. I think it will be useful in some form, but on quick glance it doesn’t really seem to compute anything stock-based, and assumes that cost of sales feeds directly into cashflow – the situation I have is that, for example, the first 3 months will be spent making widgets without any sales, so COS will be Nil, but on the other side you will be incurring negative cashflow whilst at the same time building stock…
Am I right, or am I missing something?
Hi Paul – I have posted your emailed question on the forum, as this helps other users/future users with support questions.
The cash flow forecasts will account for stock correctly.
If you enter the stock build-up at the end of each month under the stock entry on the “Data” sheet, this will prevent the cost being entered on the profit and loss.
For example:
– Purchases in month 1 – £1000 – Stock entry at the end of month 1 £1000
– Purchases in month 2 – £1500 – Stock entry at the end of month 2 £2500
– Purchases in month 3 – £2500 – Stock entry at the end of month 3 £5000Regarding the cash flow, what you need to do is to set the payment for the stock to be however many months forward the payment is made, so that it will then appear in the cash flow accordingly.
I hope this helps.
Please let me know of any follow up questions.
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