Unit 15 - Confoosed!

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jow774
jow774 Registered Posts: 465 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
Im probably being a bit thick here, but when Im doing a cashflow, if the company has a system for invoice discounting in place, do I have to include the expected discount in the cashflow?

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  • Andypandy
    Andypandy Registered Posts: 526 Epic contributor 🐘
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    I would, it needs to be as accurate as possible.
  • OlympicRudi
    OlympicRudi Registered Posts: 55 Regular contributor ⭐
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    jow774 wrote: »
    Im probably being a bit thick here, but when Im doing a cashflow, if the company has a system for invoice discounting in place, do I have to include the expected discount in the cashflow?

    Yes, for cashflow forcasts it's all about what cash you expect to actually outflow/inflow. If you expect to receive less cash due to discounts then you have to account for it.

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