Deposit-to-delivery cash tideSupplier cash is split between order placement and receipt; customer cash follows the collection lag
Business
Supplier Order Cash Flow Calculator
Translate a supplier replenishment plan into a monthly liquidity calendar. Each purchase order creates a deposit at placement and a remaining balance at delivery, while physical stock arrives after lead time and customer cash follows a separate collection lag. The model exposes orders placed, supplier cash paid, collected sales cash, ending inventory, lowest closing cash, and any additional funding gap.
Lowest closing cash-
Lowest-cash month-
Supplier cash paid-
Customer cash collected-
Purchase orders placed-
Ending cash-
Ending inventory-
Funding gap-
Purchase-order cash calendar
See supplier deposits, shipment balances, customer receipts, and liquidity in their actual months
CollectionsSupplier cashClosing cash
| Month | Opening cash | Collections | Deposits | Delivery balances | Overhead | Closing cash | Inventory | Order / receipt |
|---|
Supplier payment planning
Model the cash contract, not only the purchase-order total
- Enter stock already available before planning another order.
- Separate the supplier deposit from the balance paid when goods arrive.
- Move customer receipts by the actual collection lag.
- Trigger replenishment from inventory position, then schedule its physical receipt after lead time.
- Read the lowest closing-cash month before accepting the order plan.
Cash-calendar notation
Four clocks govern procurement liquidity
Detailed calculation process
Split one purchase order across placement and delivery months
Order value = Q × cDeposit at placement = Q × c × dDelivery balance in month m + L = Q × c × (1 - d)Collections_m = Units sold_(m-k) × rClosing cash_m = Opening cash_m + Collections_m - Deposits_m - Delivery balances_m - Overhead_mEnding inventory_m = Opening inventory_m + Arrivals_m - Units sold_mPlace Q when ending inventory + open purchase orders ≤ reorder thresholdWorked default order
A $29,760 order creates two different cash events
The default order is 2,400 units at $12.40 each with a 30% deposit and a two-month lead time.
Order value = 2,400 × $12.40 = $29,760Placement deposit = $29,760 × 0.30 = $8,928Delivery balance = $29,760 × 0.70 = $20,832Customer cash from 620 units sold at $29.50 each is $18,290, but the one-month collection lag moves that cash to the following row. The chart therefore exposes months where supplier and operating cash leave before the related customer receipt arrives.
Contract evidence
Reconcile these records
- Supplier pro forma invoice and deposit milestone
- Confirmed production and transit lead time
- Open purchase-order quantity and due date
- Processor settlement or customer payment terms
- Receiving, freight, and monthly logistics cash
Model boundary
One SKU and deterministic timing
The model assumes a fixed sales pace, one order size, one lead time, and no backorders. It excludes taxes, duty, staged inspections, partial shipments, foreign-exchange changes, credit insurance, supplier financing, and emergency freight.
Supplier order cash flow FAQ
Questions about deposits and receipts
Why can inventory look healthy while cash is tight?
Deposits and shipment balances can be paid before customers convert the inventory into collected cash.
Does a deposit reduce the delivery balance?
Yes. The balance equals the order value less the deposit already paid.
Is the lowest cash point the same as total order cost?
No. It depends on overlapping orders, receipt lag, opening cash, and monthly overhead.
Practical examples
Supplier Order Cash Flow Calculator in real planning situations
- Measure the cash effect of a 30/70 supplier payment contract.
- See whether overlapping purchase orders create a liquidity trough.
- Separate goods received from the month customer cash is collected.
Important note
Before relying on this result
Calculated from the entered values using the displayed accounting method. Reconcile material decisions with source records and applicable accounting policy.
Additional Supplier Order Cash Flow Calculator questions
Why is supplier cash split?
The deposit is paid when an order is placed, while the remaining contract balance is paid when that order arrives.
Does inventory receipt create customer cash?
No. Inventory must be sold, and the resulting receipt is moved by the entered collection lag.
What is the funding gap?
It is the additional opening liquidity required to prevent closing cash from falling below zero.