Quick Guide for Quick Cash Flow Plan / Basic Budget

Nori -

In this article, the basic functionalities in the Quick Cash Flow Plan and Basis Budget (hereafter referred to as Budget).

You may also play around with your Budget in CaFE. 

Don't worry, you can create multiple Budgets, and you can delete unnecessary Budgets at any time.

So, let's start!

 

Table of Contents

 


 

Analyse a budget

In the Budget, you may see what has happened, as well as what will happen in "View Mode".

If you see the following text in the header area, then you are in this mode:

SimpleBudgetViewMode.PNG

 

If you see the following button, then you are now in "Edit Mode", which shows the budget amounts:

SimpleBudgetEditMode.PNG

 

See Cash Flow

Your cash flow can be seen in Quick Cash Flow Plan or "Cash Flow" tab in Basic Budget, it looks like this:

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To see detailed numbers, click the ’Show details’ link below the chart.

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To see past or future, move the scroll bar. You can also expand ‘Sales’, ‘Cost of Sales’ and ‘Total’ to see more details by clicking the arrow icon on the left of each category name.

 

The monthly amount is shown in each "cell". Its overview pops up when hovering the cursor over each cell:

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  • Budget: Planned cash flow amount
  • Actual: Paid amount
  • Outstanding: The amount which consists of;
    • Authorised: Awaiting payment amount
    • Draft: Invoices/Bills to be issued
    • Overdue: Awaiting payment amount, which is past due

When you have any overdue amount, the (!) icon will be displayed on the cell.

The amount in a cell is either:

  • Past months: Actual amount
  • Current month: Actual (left) and Budget (right) amount
  • Future months: Budget amount

 

When clicking the link on a cell, related transactions are shown below.

  • Past months: Actual and Overdue transactions
  • Current month: Actual and Overdue transactions
  • Future months: Authorised and Draft transactions

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TIP!: "Right-Click" on a number cell

When you "Right-Click" on any number cell, you will see several useful options. 

If "Show actuals in current/previous period" is selected:

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then simple overview report pops up:

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At the bottom of the Cash Flow Plan, the summary data is shown.

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In the "Total", the cash flow summaries are shown.

In the "Balance", the bank balances are shown.

  • Budget (Edit mode only): Bank Balances based on Budget amounts. The starting balance is taken from the actual starting balance in the current fiscal year.
  • Actual & Budget: Bank Balances based on Actual and Budget. The actual closing balance is set until the end of the previous month (for example, actual bank balances are set until Jul 2021 when today is 02/Aug/2021 ). For the current month, Actual amounts (see above) are added to the actual bank balance of the previous month. Budget amounts are added afterwards.
  • Actual & Outstanding (View mode only): Bank Balances based on Actual and Outstanding. In similar to Actual & Budget, the actual closing balance is set until the end of the previous month, and Outstanding amounts are added up afterwards instead of Budget.

 

See Sales Plan

In the Basic Budget, you will find one special report for invoices/bills, which are related to sales and cost of goods sold, as below:

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If you click the "Cash Flow Plan" tab, then the cash flow report, which is almost identical to Quick Cash Flow Plan, will be displayed.

 

The fundamental difference between the "Sales Plan" tab and the "Cash Flow Plan" is that the "Sales Plan" uses the Accrue Date, which is the date of issuing the invoices or bills. For example, if an invoice was issued on 01/Jul/2021, and paid on 01/Aug/2021. Then, the invoice is found in "July 2021" in "Sales Plan", while in "Aug 2021" in "Cash Flow Plan".

Thus, the definition of each amount in the Sales Plan is slightly different from the Cash Flow Plan.

  • Budget: Planned invoice/bill amount
  • Actual: The amount which consists of;
    • Paid: Issued and paid amount
    • Authorised: Issued and awaiting payment amount
    • Overdue: Issued and awaiting payment amount, which is past due

 

See Monthly Budget Analysis

By clicking any part of the chart, or on the month label in the chart or table, you can see the monthly budget analysis.

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In the monthly budget analysis, you can compare Actual and Budget in the target month.

When you click ‘Show breakdown’, detailed information will be displayed.

By clicking the link on the top, you can quickly switch from Sales Plan to Cash Flow Plan in the same month or vice versa.

You can also change the target month by clicking the arrow icons on the left/right of the month label.

 

Edit a budget

Here, the basic functions are explained by modifying future sales figures.

 

Edit sales amounts in Quick Cash Flow Plan

Firstly, please click the "Edit" button in the View mode, then you will be in the Edit mode.

And the value in each cell shows the Budget Amount, which you can edit. Now you are ready to update your budget!

 

Update a single amount

Let's increase the sales amount in Aug 2021 for "C Winter Sports Shop".

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After clicking on the cell, you can directly input your updated amount. Say, 12,000. Please note that this amount includes VAT

By hitting the enter key, the new amount is set, and related amounts are automatically updated, which are marked as small triangles on the left-top of the cell, as seen below:

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The VAT is also automatically updated.

You can simply continue editing other cells.

Please note that you need to click the "Save Changes" button to save your changes.

The small red triangles will disappear when the saving is done.

If you want to view the actual data, click the "Back to View Mode" button.

 

TIP!: Keyboard navigation 

When you edit a single amount in the table, you can use the keyboard instead of the mouse like a classic spreadsheet.

[Move between cells]

You can move between cells with arrow/tab/enter keys in the main table in the edit mode as below.

Arrow keys: Move up/down/left/right

Tab/Shift + Tab: Move left/right

Enter: Move right

 

[Edit in cell] (Currently Windows only)

When you press the F2 key on a number cell, it will be locked on the cell and you can use the left/right key to move the cursor in the cell.

To exit the lock mode, simply press the Enter key.

 

Update multiple amounts at once

If you "Right-Click" a cell in edit mode, the following options appears:

mceclip8.png

 

When you select the "Edit multiple cash flow amounts", then a special update screen pops up:

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If you want to increase sales amount from August 21 to December 21, set values as follows, then click "Simulate". This looks like this:

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If you are happy with this, click "Apply changes to the plan", then those values are set in the main report.

Please click the "Save changes" button to save all changes.

 

TIP!: Add, Subtract or Overwrite

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If you click the "+" sign, several options appear:

  • Add: add an input amount to the current budget amounts for the specified period
  • Subtract: subtract an input amount from the current budget amounts for the specified period
  • Overwrite: overwrite the current budget amounts for the specified period with an input amount

 

Edit sales amounts in Sales Plan

The sales amount in the Sales Plan can be also after the "Edit" button is clicked.

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Two sections, "Invoices/Bills" and "Cash Flows", are in the "Sales Plan" tab above.

Invoices/Bills:

The amount of issuing invoices/bills is set here. Note that this does NOT contain the VAT amount. It also shows the "Gross Profit" and "Gros Margin".

- Gross Profit: This is calculated by subtracting the sum of the issued amount in "Cost of Sales" from that of "Sales". Note that it may be different from the gross profit in Profit & Loss, as the depreciation and certain accounting handling of cost of sales, if any, are not considered. 

- Gross Margin: This is calculated by dividing Gross Profit by the sum of Sales. If the sum of Sales is 0, then set to 0.

 

Cash Flows

The resulting cash flows from the "Invoices/Bills" are automatically calculated. Let's see how it is done in an example of the invoice amount on August 2021 of "C Winter Sports Shop":

1. payment timing of the invoice amount of 5,785 is calculated with "Due (+Months)", which is one month. In this case, the payment appears on September 2021.

2. VAT amount is added to the invoice amount to create the payment amount. The used VAT rate is shown in the "VAT Rate(%)", which is 20% for this customer, and the resulting amount is 6,942.

 

There are 3 editing options to update amounts in Invoices/Bills.

Update a single amount

This is the same as the Quick Cash Flow Plan. Please refer here.

 

Update multiple amounts at once

Use "Edit multiple budget amounts" by "Right-Click" on a number cell.

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It is almost the same as the one in the Quick Cash Flow Plan.

Related amounts are updated automatically, and changed cells are marked with a red triangle.

 

Schedule payments

Sometimes, you need to set up the payment schedule for certain invoices/bills in detail, such as separate payments, etc. This can be done by the "Schedule monthly payments", which is available in option lists upon "Right-Click" the target cell:

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In the list below, you can set the cash flow amount separately. 

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The "Day" specifies the day of the month the cash flow. 

Hit the "Update" button and the cash flows will be updated.

Note that this can be done when all the other changes in the budget are already saved.

 

Manage contacts

When you create a new budget, you can select contacts that you would like to manage in your budget individually. (Up to 10 each)

The rest will be managed together as ‘Others’ in the Sales and Cost of Sales.

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Add contacts

When you would like to add more contacts after the creation, you can still do that by switching to the Edit mode and clicking the + icon in the Sales Plan in the Basic Budget or the Quick Cash Flow Plan, or selecting ‘Add new contacts’ from the option menu in the Edit mode as below.

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In the Add Contacts view, you will see a list of your contacts. If it is already included in the current budget, it will be greyed out.

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The amount in the table shows the total of actual transaction amounts in the past year for your reference.

To add contacts, you can just select any contacts (up to 10 in total), and click the Add button, then the budget will automatically be recalculated.

 

Create a new contact

Sometimes, you may want to simulate your budget in the case that you acquire new customers, or switch to new suppliers.

In this case, those contacts might not exist in your accounting system yet and you probably do not want to make any change in the accounting system only for this purpose.

Even in this scenario, you can still create a new contact in CaFE by clicking the Create new contact above the contact list.

For creating a new contact, simply enter a contact name and click the Create button, then it will be added to the contact list.

After that, click the Add button, then it will be included in the current budget.

mceclip16.png

 

Please note that any contacts created inside CaFE will be displayed with the unlink icon. This means it is NOT linked with your accounting system. Therefore, when you add the contact in your accounting system later on, they will be treated separately. For now, there is no way to link those contacts so the unlinked contact needs to be removed from the budget but we’ll improve this feature soon.

 

Delete a contact

When you don’t need to manage any contact in your budget, you can remove the contact in the Settings by clicking the name in the Edit mode.

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To remove the contact from the budget, there are two options;

- Delete

When the contact is no longer related to your business, simply click the Delete button, then it will be completely removed from the current budget, although it still exists in the contact list.

Please note that this action will affect only future budget amounts but any actuals in the past.

- Merge with Others

If you just would like to manage it as a part of Others, then select the ‘Merge with Others’ option, and click the Delete button. In this case, all the budget amounts will be merged with Others in the same category (Sales or Cost of Sales).

 

 

Edit "Others Incomes / Expenses"

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This is cash flow can be found in the Cash Flow tab in the Basic Budget, and the main screen in Quick Cash Flow Plan. Basically, all cash flows, which are not categorized in other categories.

- Incomes (Cash-ins): cash-in transactions, which are NOT sales, loans, or VAT, are set here. (Positive number only)

- Expenses (Cash-outs):  cash-out transactions, which are NOT the Cost of Goods Sold, loans, VAT, or corporation tax, are set here. The typical example is the operational cost, such as rent and salary.

 (Negative number only)

 

The budget amounts in the future are calculated based on the budget creation setting:

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- monthly average of actuals: the average of the plan start and previous month are calculated and set to future budget

- actuals: set the actual amount in the previous year

Please note that dividend payments are also set here while fixed asset purchases are excluded from Expenses

 

Those can be modified in the same manner as for the Sales in Quick Cash Flow Plan.

 

Add a new loan

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This category is specific loans and repayments. Upon the creation, entries for loans, which have the past transaction in the budget period, are automatically created, as in the example below. The related costs, such as interests, are also included.

For existing loans, you may update the cash flow in the same manner as "Other incomes/ expenses".

 

If you want to plan a new loan, this can be added as follows.

1. Click the plus icon in the Loan + Interest section below in the Edit Mode, or select ‘Loan Simulator’ from the option menu as below.

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2. Input the loan amount, starting date, repayment months, and interest rate

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- Amount you wish to borrow: please note that this does NOT include the interest or other related costs.

- from: the day, when you plan to receive the money. This is used for the following repayments

- months

- Interest Rate: this amount can be found in the information by the loan provider. Sometimes it contains other fees than the interest, and is referred to as "APR".

 

3. Click the "Simulate" button, then the repayment schedule is created based on the conditions.

LoanSimulatorRepaymentSchedule.PNG

 

We simulate the repayment so that the monthly payment amount is constant.

- Loan: the cash flow amount, which is related to the loan. You can see that the cash-out amount increases as time goes. This is because the interest payment is higher than that in the following period. 

- Interest: the cash flow amount, which is related to the interest. You can see that the cash-out amount decreases as time goes.

- Cash Flow: the total cash flow for each month.

- Balance: this shows the remaining loan balance. It decreases slowly at first, then sharply as time goes by.

You can change your loan conditions, and simulate again.

 

4. When you are happy with the repayment plan, then set:

- Loan Account: an item in your Chart of Accounts, which is linked to the loan. If you need a new Chart of Account item, please create one in your accounting software as it requires. Then do the sync-all in CaFE. We recommend putting "Loan" as a part of the name of the item.

Please also see Cannot find my loan account if you still cannot find it.

- Receiving/Repayment Bank A/C: select the bank account, with which cash flows are set.

 

5. Click the "Add this loan to the plan" button, then this loan plan will be added to your budget.

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You can also edit a cash flow amount in each cell, or update multiple amounts at once by using Edit multiple cash flow amounts feature afterward.

Note that currently, the loan simulator works only for your home currency base.

 

 

Edit Corporation Tax

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Upon creation of a budget (Quick cash Flow Plan / Basic Budget), the corporation tax for the future is simply repeated from the past. That is, if you have paid corporation tax on December 2020 with the amount of 2,000, then the amount for 2021 is simply set to 2,000.

The actual amount, which is sent from the tax authority, can be input into the budget.

Please note that this cannot be automatically updated as business goes by.

 

 

Edit Settings

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In "Edit Mode", you can change several settings for cash flows.

Basically, you can set the following:

- Payment Bank A/C: The bank account, where the cash flow occurs in our Cash Projection (explained later in this document). 

- Payment Day: The day of the month, when the cash flow occurs in our Cash Projection 

- VAT Rate: Applied VAT rate. This is estimated from past transactions. For "Others/Incomes, Others/Expenses", this is the average value from the past. This is because the VAT rate might differ among transactions. You can see how the value is calculated in the "How was this rate calculated?" section for those cash flows. You may change this value as you want.

mceclip4.png

 

 

Create/Recreate the next period

Create the next period

On the next day of your fiscal year-end, the time scope of your budget is moved forward.

For example, if your fiscal year-end month is January and today is 31/01/2021, the plan shows from 01/02/2020 to 31/01/2022, but on the next day, it is from 01/02/2021 to 31/01/2023.

It looks like this:

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Note that the plan cannot be edited until the next period is created, but don't worry, it is quite simple!

Firstly, select the "Create next period" button.

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Now you can set the % changes, as is done upon the first budget creation.

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And that is all! Now you are able to edit the budget as before.

 

Recreate the next period

You may want to update the plan based on the current actual business situation.

It can be easily achieved by recreating the next period.

This function will recreate the budget in the next fiscal year.

For example, if your fiscal year ended in March and today is 01/09/2021, then the budget from 01/04/2022 to 30/03/2021 will be recreated, without changing anything in the preceding budgets.

Firstly, select "Recreate next period" from the list as below:

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Then the following screen pops up. You may change the assumption as needed.

 mceclip2.png

 

Click the "Create" button, then the budget for the next fiscal year is recreated.

 

 

Create a new scenario (Copy & Update)

Sometimes, you may want to simulate your budget in any different scenarios under certain conditions. If you use a classic spreadsheet, you would probably copy the sheet with a new name and update the copied sheet.

You can simply do that by creating a new scenario so that you do not need to create a new budget and update all amounts from the beginning again.

To do this, go to any budget that you would like to copy from, then select ‘Create new scenario’ from the menu in the View mode.

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Then the following screen will be displayed. As you can see, this is almost the same as ‘Create/Recreate next period’ mentioned earlier.

 

 

Export a budget

This feature might be useful when you would like to share your budget with any external people or play with your budget more freely.

To export your budget, select ‘Export budget’ from the option menu in either the View mode or Edit mode.

You can export two types of files.

  • Actual & Budget (In View mode): Actual amounts are shown in the past and current months, Budget amounts are shown in the future months
  • Budget (In Edit mode): Only budget amounts are shown in all the months

 

 

About VAT

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VAT is automatically calculated in CaFE, when your company is registered for VAT return.

This amount is automatically updated when you updated the budget.

 

NOTE: Some limitations in the VAT function:

- Cash-based only: you may know that there are 2 types of VAT calculation: Cash-based or Invoice-based (or Accrual-based, Issue-based, etc..). As Quick Cash Flow Plan and a part of Basic Budget does not consider the issuing timing, we simply use the Cash-based, no matter how it is set in your accounting system.  

- VAT settings may not be correct: while the accounting systems allow limited information about VAT, the VAT settings might be different from the actual. This discrepancy may happen mostly in the Closing Timing. The account closing timing for your VAT might be at the end of March, June, September, and December. But April, July, October, and January may be set in CaFE.

In this case, you can set the correct one from Budget settings.

These settings can be accessed in "View Mode", as follows

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Check your Close Timing, and simply select the correct one, if it does not the actual one.

 

Submit Timing means that when cash flows for the VAT occur. If the return cash flow occurs 1 month and 7 days after the closing timing, then set as above. For example, suppose that you have the VAT return of +500(receive from the tax authority) at the end of March. Then this amount will be paid to your bank account on the 7th of May.

Please set the values based on your business procedure to see the realistic VAT return cash flows.

 

 

See the cash flows in our Cash Projection

One of the most powerful features in CaFE is that the cash flows in the budget are integrated to the daily Cash Projection.

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The cash flow amount will be shown with the "Planned" state as above.

If some actual transactions are already issued for the planned cash flow, it is automatically deducted, as below.

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In this sample, the planned amount of 18,981.65, and the actual amount is -3,295.20.

And only the difference is shown in the planned cash flow. 

Note that "actual amount" contains both the ones, which are already paid in the planned month, and ones, which are issued, and cash flow is expected in the planned month. 

If the gap between the actual amount and the planned amount is not 0, then the gap will appear even after the planned payment date is passed. We call this "Gap Tracking", and this can be deactivated. This will be explained later.

 

How to monitor a Budget

Firstly, please select a budget, which you want to monitor in the cash projection.

In "View Mode", the following button is shown.

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Simply click it, then it is ready to monitor. Then go to the "Cash Projection" or "Cash Short Predictor":

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Then click the following button:

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Now you can see the planned cash flow in your cash projection!

 

How to change the payment timing and monitoring setting in Cash Short Predictor

You can change the individual payment timing and monitoring setting for planned cash flow from "Cash Short Predictor".

Note that all the changes are reflected in cash projection after "Recalculate Projection" is done.

Firstly select the planned cash flow, which you want to edit.

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- Change Date

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Just select the new payment day, then save. If you tick the "Apply the change to all..", then this payment day will be set to future ones.

- Stop Monitoring:  The planned cash flows of this category, including future ones, will not appear anymore. You can start monitoring again in the Budget Screen.

- Stop Gap Tracking: The planned cash flows do not track the gap. That means, if any actual or forecast transaction is found for the category in the month, planned cash flow does not appear anymore. This setting can be changed afterward.

 

How to change the individual monitoring setting in the Budget

Monitoring settings can be changed in the "View Mode" in the monitored Budget.

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If you click the link in the cash flow name, the monitoring setting appears.

After updating it, do "Recalculate Projection" in "Cash Short Predictor" to reflect the change.

 

How to manage foreign currency payments

If you have a foreign currency bank account and want to see the cash flow from the budget in the cash projection, it can be simply done by selecting "Payment Bank A/C" to the foreign currency bank account.

1. Click the "Edit" button in the budget.

2. Open the setting screen by clicking the name or category, then set the foreign bank account.

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3. Go to Cash Short Predictor, then click "Recalculate Projection". Then select the CCY to the corresponding currency, then the cash flow is shown, as below:

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Exchange Rate

The amount in foreign currency is calculated by using the exchange rate inside the CaFE.

The exchange rate is in the "Currencies" tab in Budget Settings.

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It is currently estimated from the bank statements and balance sheet data from your accounting system:

Exchange Rate = (Yesterday's closing balance of the bank account - Unreconciled bank statement lines in last one month) / Amount in the Balance Sheet.

If the estimated exchange rate is not properly calculated, we set 1 instead.

This exchange rate is updated upon sync, but you may fix the exchange rate with your value:

1. Input your exchange rate

2. Set "Lock" to on, as below.

3. Save

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The change will be reflected after the "Recalculate Projection" is clicked in the Cash Short Predictor or sync.

 

 

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