The version settings comprise two groups of variables:
The name of your version. Use it to easily distinguish between versions.
You can add any notes that you feel relevant about this version.
Advice: if you are using a version as an alternative scenario we advise you to state on the description what are differences from the base version.
The date that the version was created.
The inflation rate that will be applied on other assumptions. CASFLO APP immediately applies the inflation rate to:
Raw material and consumables.
It does not applicate the inflation rate to:
Other gains and costs.
Operational and investment grants.
Other balance items.
Days of VAT
The government receivables and payables accounts include the VAT balance in favor or against the company. Tax regulation usually states the deadline within which the companies must pay the VAT balance.
Example – Two situations involving days of VAT balance
Lewis’s company is legally obliged to report its VAT Balance monthly: it must report it within a 30 days period after the end of each month. After the reporting deadline it has 15 days to pay or to be redeemed of its VAT balance.
At the end of the year, Lewis company must report December’s VAT Balance and, having reported November’s VAT balance in December, the company still has 15 days to pay the VAT balance. Therefore, the company is holding the VAT balance of two full months or, 60 days of VAT balance.
If Lewis company had to report the VAT balance on a trimestral basis with a 30 days deadline for reporting and a 15 days deadline for payment, at the end of December the company would holding the VAT Balance of October, November and December or, 90 days of VAT Balance.
Advice: if you are not sure about the number of days to pay the VAT balance keep the pre-entered suggestion of 30 days.
Days of accounts receivables
The clients’ accounts are calculated through the days of accounts receivables: the average number of days that it takes for your clients to pay invoices issued to them.
Days of accounts payables
The suppliers’ accounts are calculated through the days of accounts payables: the average number of days that you estimate it takes your company to pay to its suppliers. It does not apply to investment suppliers.
Days of investment payables
The other payable accounts are calculated through the days of investment payables: the average number of days that you estimate it takes you to pay to your investment suppliers. It does not apply to regular suppliers’ invoices.
Days of stock
The inventory in balance is calculated through the days of stock: the average number of days that it inventories items are kept at your guard, either to be manufactured or to be sold to your costumers.