Moving an invoice collection date.
A customer accepts a $24,000 invoice but moves payment back by two weeks. The amount has not changed. The cash available before collection has.
Four weeks from an illustrative forecast.
The figures show four weeks within a 13-week forecast. Opening cash is $60,000. The original receipt is included in the week ending June 12. All amounts are in US dollars.
| Week ending | Original receipts | Revised receipts | Payments | Original closing cash | Revised closing cash |
|---|---|---|---|---|---|
| June 5 | $28,000 | $28,000 | $38,000 | $50,000 | $50,000 |
| June 12 | $42,000 | $18,000 | $33,000 | $59,000 | $35,000 |
| June 19 | $18,000 | $18,000 | $41,000 | $36,000 | $12,000 |
| June 26 | $26,000 | $50,000 | $30,000 | $32,000 | $32,000 |
Change the receipt once.
The revised forecast removes $24,000 from June 12 and adds it to June 26. It does not add another receipt while leaving the first one in place. Closing cash is then recalculated through every following week.
The revised June 12 balance is $35,000. After the next week’s receipts and payments, it falls to $12,000. Both versions finish June 26 at $32,000 because the invoice has been collected by then. The intervening cash position is different.
Read the week before the money arrives.
If payroll and supplier payments must be made before June 26, the month-end balance alone gives an incomplete picture. Management needs the payment dates within that period and the cash that is actually available.
The example assumes the full invoice is still collectible. A disputed amount needs its own assumption. If only part is expected to arrive, change the amount as well as the date, and state the reason.
The update note can be short.
“Customer payment of $24,000 moved from the week ending June 12 to June 26 following the revised collection date. No change to the invoice amount or other forecast receipts and payments.”
That note preserves the explanation for the next weekly reconciliation. When the receipt arrives, record the actual amount and date and compare them with the revised forecast.