Introduction {#introduction}

In this article, we will explore the use of artificial intelligence (AI) in Microsoft Dynamics 365 Business Central to produce cash flow forecasts, sales and inventory forecasts, and late payment predictions. These AI-powered features provide valuable insights and help businesses make informed decisions based on predictive analysis. We will delve into the setup and configuration process for each of these functionalities and understand how they can benefit businesses in managing their finances and inventory.

Cash Flow Forecasting in Dynamics 365 BC {#cash-flow-forecasting}

Cash flow forecasting in Dynamics 365 BC is a powerful tool that allows businesses to project their cash inflows and outflows based on known facts and various scenarios. By utilizing the Microsoft Azure machine learning feature, users can gain insights into their future cash flow and make informed decisions. The cash flow forecast takes into account liquid funds, such as bank and cash accounts, as well as money coming in from customers and going out to vendors. Let's explore how to set up and configure the cash flow forecast Chart.

Setting Up Cash Flow Forecast Chart {#setting-up-cash-flow-forecast-chart}

To begin using the cash flow forecast chart, you need to enable and configure it in the assisted setup. Speak to your administrator if you do not have access to this option. Once enabled, you can access the cash flow forecast chart under the accountants' role. The chart provides a visual representation of your cash flow projections.

Configuring Cash Flow Setup {#configuring-cash-flow-setup}

To configure the cash flow setup, navigate to the "Cashflow Setup" option. Here, you can specify how often you want the forecast to be updated and set up your receivables accounts. The system allows you to select from the available folders and choose the required accounts. It is important to set up this information correctly in collaboration with your accountant. Additionally, you can choose the forecasting models, such as ARIMA or a combination of models. The Azure Ai Gallery provides more details on the available models and their calculations.

Processing Cash Flow Worksheet {#processing-cash-flow-worksheet}

Once the cash flow setup is complete, you can start processing the cash flow worksheet. This process suggests lines based on the selected parameters, such as liquid funds, receivables, sales orders, service orders, and fixed asset proposals. You can also specify the budget and apply filters. After suggesting the lines, the system performs the necessary calculations and prompts you to register them. Any warnings or discrepancies will be highlighted for your attention. Upon registration, the figures are updated in the cash flow forecast chart, allowing you to Visualize and analyze your future cash flow.

Sales and Inventory Forecasting {#sales-and-inventory-forecasting}

The sales and inventory forecasting feature in Dynamics 365 BC leverages AI to predict potential sales and monitor inventory levels. By analyzing historical data, businesses can gain insights into expected sales and stockouts. This helps in making informed decisions about purchasing and inventory management. Let's explore how to enable and utilize this functionality.

Enabling Sales and Inventory Forecasting {#enabling-sales-and-inventory-forecasting}

To enable sales and inventory forecasting, navigate to the "Forecast Setup" option. Here, you can specify the time frame for forecasting, such as monthly or quarterly, and set the duration for looking forward and identifying potential stockouts. The system considers the last 24 months of data for analysis. Additionally, you can integrate other modules for a comprehensive analysis of sales and inventory data.

Viewing Sales and Inventory Forecasts {#viewing-sales-and-inventory-forecasts}

Once the forecasting setup is complete, the system creates a background job to generate forecasts. You can access the forecasts by searching for particular items and viewing the forecast details in the fact box. The sales forecasts show predicted sales for each item, while the inventory forecasts provide insights into the expected stock levels for each item.

Using Sales and Inventory Forecasts {#using-sales-and-inventory-forecasts}

The sales and inventory forecasts serve as a foundation for making purchasing decisions. You can use the forecasted data to create purchase invoices or purchase orders. These forecasts provide valuable insights into the demand for specific items and help in optimizing inventory levels. The flexibility to adjust and refine forecasts allows businesses to adapt to changing market conditions effectively.

Late Payment Predictions {#late-payment-predictions}

Late payment predictions feature enables businesses to manage their collections from customers by providing insights into when payments are due and whether they are predicted to be on time. This functionality uses AI to analyze payment history and predict the payment behavior of customers. Let's explore how to set up and utilize this feature.

Setting Up Late Payment Prediction {#setting-up-late-payment-prediction}

To set up late payment predictions, navigate to the "Late Payment Prediction Setups" option. Here, you can enable this feature and manage the job queue for processing predictions. By enabling this option, the system starts analyzing payment history and predicting the payment behavior of customers.

Predicting Payments {#predicting-payments}

Late payment predictions can be accessed at various stages, starting from sales quotes to sales invoices. The system provides an option to predict payments for each sales document. By clicking on the "Predict Payment" button, you can see if the payment is predicted to be on time or delayed. This information is useful in managing collections and adjusting payment terms to ensure Timely payments. Predictions help businesses anticipate any potential delays and take necessary actions to mitigate the impact on cash flow.

Conclusion {#conclusion}

The integration of AI in Microsoft Dynamics 365 Business Central brings powerful forecasting and prediction capabilities to businesses. Cash flow forecasting, sales and inventory forecasting, and late payment predictions enable businesses to make informed decisions based on predictive analysis. These AI-powered features provide valuable insights that can help businesses effectively manage their finances, inventory, and collections. By leveraging the advanced capabilities of AI, businesses can gain a competitive edge in today's dynamic market.

Highlights

Cash flow forecasting in Dynamics 365 BC provides advanced reporting tools for projecting cash inflows and outflows.
Sales and inventory forecasting feature analyzes historical data to predict potential sales and monitor stock levels.
Late payment predictions help businesses manage their collections by predicting payment behavior and identifying potential delays.

FAQ

Q: Can I customize the forecasting models in Dynamics 365 Business Central? A: Yes, the system allows you to choose from various forecasting models or use a combination of models based on your preferences and requirements.

Q: How frequently can I update the cash flow forecast in Dynamics 365 BC? A: You can configure the system to update the cash flow forecast according to your desired frequency, such as daily, weekly, or monthly.

Q: Can I adjust the payment terms based on the late payment predictions? A: Yes, by predicting payment behavior, you can make informed decisions about adjusting payment terms to ensure timely payments from customers.

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