Understanding Cash Projections in Cetec ERP
Managing cash flow is one of the most pressing challenges for small and mid-sized manufacturers. Customer payments don’t always arrive when expected, and supplier invoices often come due at the least convenient times. A clear cash projection tool helps you anticipate these swings, giving you visibility into when money is coming in and when it needs to go out.
Cetec ERP provides this visibility directly in the system by calculating cash in (customer payments) and cash out (vendor payments), week by week.
The A/R Side: Cash Coming In
On the accounts receivable (A/R) side, Cetec ERP projects incoming cash by summing up:
- Unpaid invoices - outstanding invoices that have already been billed.
- Open orders - customer orders that have not yet been invoiced but are scheduled to ship.
Each invoice and order is tied to an A/R due date. For invoices, this is straightforward: invoice date plus terms. For open orders, Cetec ERP estimates the due date by taking the expected ship date and adding the payment terms.
Payment terms are configurable in Cetec ERP’s 9TERMS data maintenance table. For example, if your terms are Net 30, the system will calculate the due date as ship date plus 30 days. This allows you to see, by week, how much cash you can reasonably expect to collect.
The A/P Side: Cash Going Out
On the accounts payable (A/P) side, Cetec ERP applies the same logic to forecast vendor payments:
- Unpaid vouchers - vendor invoices already entered into the system
- Open purchase orders - committed but not yet received purchase orders
For each PO line, Cetec ERP calculates an estimated pay date by taking the expected dock date and adding the terms. Like A/R, these terms are defined in the system, ensuring consistency and accuracy across all transactions.
Pulling It Together: Cash In vs. Cash Out
With both sides calculated, Cetec ERP creates a projection of:
- Cash In = unpaid invoices + estimated A/R from open orders
- Cash Out = unpaid vouchers + estimated A/P from open POs
This weekly view of net cash allows accounting teams to:
- Anticipate shortfalls before they occur
- Adjust purchasing schedules or negotiate terms when cash is tight
- Communicate clearly with leadership about upcoming risks and opportunities
Why This Matters for Manufacturers
Manufacturers often operate with long lead times, tight margins, and large purchases of materials upfront. Without reliable cash visibility, it’s easy to overextend with suppliers or miss opportunities with customers.
By tying projections to real transactional data, ship dates, dock dates, and payment terms, Cetec ERP removes guesswork and helps manufacturers plan with confidence. Instead of scrambling when cash runs thin, you can proactively adjust purchasing, collections, or production schedules.
Learn More
Cetec ERP’s cash projection tools are built into the core accounting system, alongside inventory, purchasing, and production. This means your forecasts reflect the real status of your orders, not a disconnected spreadsheet.
For a deeper look at financial management in Cetec ERP, visit our Accounting documentation.