Inventory Cash Flow Management - Up to 36 Month Forecast

Description
Updated - This template now runs off a monthly basis instead of daily, has improved flexibility in scaling multiple SKUs and is generally much cleaner to work with for ongoing or startup businesses that have inventory forecasting needs. Additionally, it has an option for payment terms that allow the user to account for up to three payments made per inventory purchase (user simply configures the month # from order and % of purchase paid at each of the three payment events. This scales across all data dynamically.

You can now forecast for up to a 72 month period and see resulting inventory cash requirements, units ordered per month, units arriving per month, units sold per month, accounts payable balance over time, and ongoing inventory balance as well as lots of visualizations to digest all the data.

If you have any business that requires you to buy supplies or any kind of inventory ahead of time and you have a varying amount of planned sales that is dependent on having enough supplies and inventory on hand, this financial model will be of assistance.

It is designed to adjust for a dynamic lead time (in months) that is entered per SKU. Based on that, you will see that the model tells you the day something needs to be purchased in order for it to arrive before that SKU is depleted.

Unit sales are projected based on entered historical data by month by the user. Then, you can apply a % change per year that looks at the historical average for that month and then adjusts it based on the % entered. This becomes your forecast for unit sales.

The beauty of setting up the structure as such is you can account for seasonality changes and based on that you get a better idea of when you need a certain amount of cash so that you can get the supplies / inventory in time to sell and before you run out.

Obviously it is not perfect and your projections could be off from the actuals. However, it is a good idea to know roughly when and how much cash you need in order to reasonably be able to purchase things. The ability to see cash flow timings is the strength of this model.

Plenty of charts and visuals are also included.

This template is also included in two bundles:
- All Models Bundle: https://www.eloquens.com/tool/P8Y4TX4v/finance/financial-forecasting-models/financial-models-120-useful-and-usable-logic
- Accounting Tools: https://www.eloquens.com/tool/axKzHNRV/finance/accounting/accounting-bundle-useful-excel-templates-for-accounting-department