Monitoring future credit card balances is very important in order to avoid future payment failure, which may damage your business operation.
"Credit Card Balance Forecast" in Mobile CaFE helps you see your future credit card balances in a very practical manner.
In this sample screen, you see the future closing balance on 31 July, when repayment is scheduled. When you click the balance, cash flow forecasts (payments and repayments) are shown.
[Setting up your credit cards]
The following settings are required to work the Credit Card Balance Forecast properly:
To set up them, access CaFE on your desktop browser, then go to Master -> Bank Accounts. Then click "Edit" button on a credit card account. Please note that you need the edit permission for the entity in CaFE for this operation.
After setting values, click "Update". The changes will be reflected in the Credit Card Balance Forecast when "Recalculate Projection" button is clicked in the Future Critical Timing, Cash Projection in the desktop version, or in the Cash Summary in Mobile CaFE.
1. Credit Line (Credit Limit for credit cards)
The amount you can spend on your credit card. If your limit is 3,000 GBP, please input 3000 (not -3000!).
2. Payment Day (Repayment Timing)
Please specify when you make a payment to your credit card company each month. This varies on each credit card company (*1).
*1: "Account Closing Timing" in your credit card account and your actual repayment timing usually differ. Account Closing Timing is when the next repayment amount is fixed, and it is earlier than repayment timing, such as 5 days prior to the repayment day. If you are sure when the Account Closing Timing, you can set it as a Payment Day. If you are not sure, you can set your repayment timing.
3. Marking key
This is used to recognise if a payment transaction is done by the credit card. Please see the instruction here.
[Creating payment and repayment transactions]
There are 3 ways to create future payments and repayment transactions in the Cash Projections in order to reflect the payment in the Credit Card Balance Forecast.
1. Create a payment in your accounting system
Simply input bills and/or manual bank transactions in your accounting system.
2. Use the Financial Plan in CaFE
It is the very useful feature in CaFE, which allows you to create future transactions automatically based on your plan. Please see the instruction here.
3. Use CaFE's Scheduling
It is also the strong feature in CaFE. Please see the instruction here.