How to Create a Cash Flow Forecast in Dynamics 365 Business Central

Learn how to create and manage a cash flow forecast in Dynamics 365 Business Central.

Cash flow forecasting helps organizations anticipate future cash positions by combining open transactions, budgets, and manual adjustments into a single, forward-looking view. In this training article, we'll walk you through how to configure, maintain, and analyze a cash flow forecast in Dynamics 365 Business Central.

Configure Cash Flow Forecasting Using Assisted Setup

Before a cash flow forecast can be used, basic configuration must be completed. This helps guide you through the basic configuration required before you can start using cash flow forecasting.

You can access Assisted Setup in one of two ways:

Click the gear icon and select Assisted Setup

Or you can also use the Tell Me feature and search for Assisted Setup

From the Assisted Setup list, search for Configure the cash flow forecast chart and click it to run it.

You'll see a set up window, click Next to proceed.

If this setup has already been completed in the environment, you may receive a warning indicating that configuration exists. In that case, you can continue by confirming the prompts.

Confirm Cash Accounts and Update Settings

During setup, Business Central automatically identifies cash and bank accounts to include in the forecast. Review these accounts and confirm that they accurately represent your organization’s cash balances.

Define how frequently the forecast should update: Daily (reccomended) or Weekly. You’ll also see an option to turn on Azure AI forecasting. This is recommended, but it’s important to note that Azure AI needs enough historical data to work properly. If your system doesn’t yet have sufficient history, the AI won’t be able to generate reliable forecasts.

Once you're complete, click Next.

Configure Tax Payments

Then, you'll be prompted to input your tax setup. Here you’ll define:

• How often taxes are paid (for example, monthly)

• How many days after the period end they’re paid (in this example, 30 days)

• Which account they’re paid from—typically a G/L account

  
  

Once that’s complete, click Next.

Then click Finish. Business Central will finalize the configuration and create a default cash flow forecast.

Review Cash Flow Forecast Setup

After setup is complete, navigate to the Cash Flow Setup and review the configuration to ensure it aligns with business requirements.

You'll see that the setup includes:

• Forecast update frequency

• Cash flow accounts

• Tax configuration

• Azure AI settings

All of this can be modified later if needed, or you could have set it up manually instead of using Assisted Setup.

Open and Configure the Cash Flow Forecast

Navigate to the Cash Flow Forecast that was created by typing it in the search bar.

When reviewing a forecast, you can configure:

• Whether customer or vendor payment discounts are considered

• Which expenses are included

• Whether budgeted amounts are used

• Which budget is applied

  
  

One important setting here is Show in Chart on Role Center. If you have multiple forecasts, only one can appear on the Role Center homepage, and this toggle determines which one that is.

Note that the cash flow chart is only visible on specific Role Centers, such as Business Manager or Accountant, and may not appear for all users.

Manage Cash Flow Entries with the Worksheet

To manage and review forecast entries, click into the Cash Flow Worksheet.

Click Suggest Worksheet Lines, make sure your cash flow forecast is selected, and choose what you want to include.

A new window will open up. In this example, we’ll leave all forecast and inclusion options turned on and click OK.

If Azure AI is enabled but historical data is insufficient, warning messages may appear. These warnings can be ignored if you don’t yet have enough historical data.

From here you can also:

• Review and adjust forecasted values

• Edit existing entries

• Add new lines manually if needed

  
  

Once your review is complete, select Register to finalize the forecast entries.

Cash Flow Availability by Periods Report

Before moving on, let’s quickly look at a helpful report called Cash Flow Availability by Periods. This report provides a summarized view of cash position over time. To access it, head to your Cash Flow Forecast Card and navigate to Report > Related > Cash Flow Forecast > CF Availability by Periods.

This report allows you to:

• View data by day, month, quarter, or other periods

• Apply rounding factors

• Switch between net change and balance at date views

It displays cash inflows, outflows, and net movement, making it useful for high-level analysis and planning.

View the Cash Flow Chart on the Role Center

The Cash Flow Chart appears on the homepage (if enabled for the selected role).

One key note: Anytime you make changes to your forecast, you’ll need to click Recalculate Forecast for the chart to update.

You can also customize how the chart displays:

• Accumulated cash

• Change in cash

• Combined view (bar chart for change in cash and line graph for accumulated cash)

You can also adjust the forecast period length, such as daily, weekly, or monthly, depending on reporting needs.

Adding Manual Cash Flow Adjustments

Some cash flow items do not originate from posted documents. These include examples such as payroll or interest income. Manual adjustments can be added through Manual Adjustments in the forecast. You can also type it in the Tell Me search bar.

When adding a manual entry, specify:

• Amount

• Date

• Frequency (for example, monthly)

• Optional end date

  
  

After adding manual entries, recalculate the forecast to include them in charts and reports.

Additional Standard Cash Flow Reports

Business Central also includes several standard cash flow reports located under Financial Reporting.

There are four main cash flow reports, each offering different analytical views:

• Cash receipts and disbursements

• Payables and receivables

• Cash surplus

• Cash cycle metrics, such as days sales outstanding

  
  

Like other standard reports in Business Central, these can be customized by editing row and column definitions to better suit your business needs.

Cash flow forecasting in Dynamics 365 Business Central provides powerful insight into future cash positions by combining real transactions, budgets, and manual adjustments. With proper setup and ongoing review, organizations can better anticipate cash needs, manage risk, and support informed financial decision-making.

Got Questions? Kwixand Solutions Can Help

Feel free to get in touch with the team at Kwixand Solutions for expert assistance if you still have questions. Don't forget to subscribe to our YouTube channel for more Business Central training videos, and stay connected with us on LinkedIn, Facebook, and Instagram, for the latest updates.