12-month inventory-to-receipt cash channelPayment lag and inventory lead are shown as separate timing locks
Business
Wholesale Pricing Cash Flow Calculator
Expose the cash-conversion gap hidden by wholesale revenue. Sales are collected after the entered customer terms, inventory is funded before shipment, returns reduce receipts, and freight, commission, and overhead are deducted on their actual modeled cadence to reveal minimum liquidity and funding need.
Month-12 closing cash-
Minimum cash balance-
First funding-gap month-
Total wholesale receipts-
Total inventory purchases-
Total freight + commission-
Cash conversion gap-
Liquidity signal-
Month-12 closing cash relative to opening cash
Wholesale cash-conversion channel
Trace inventory prepayments through shipment and delayed customer collection
Receipts / prepaymentsClosing cash tide
| Month | Units shipped | Net sales | Receipts | Inventory purchases | Freight + commission | Overhead | Net cash | Closing cash |
|---|
Cash-conversion setup
Place every wholesale cash event in the month it reaches the bank
- Project shipped units and net invoiced sales after returns.
- Shift customer receipts by the selected payment lag.
- Fund inventory before shipment using the entered purchase lead.
- Deduct freight, sales commission, and fixed overhead on their modeled cadence.
- Use the minimum balance and first negative month to set financing lead time.
Conversion channel
Growth widens the gap when inventory is paid before invoices are collected
The orange outflow bars move with future units because inventory is purchased ahead. Green receipts arrive after the customer lag. The purple cash tide integrates both timing effects.
Detailed calculation process
Separate invoice economics from bank timing
Units shipped(m) = Month-1 units × (1 + Unit growth)^(m − 1)Net sales(m) = Units shipped(m) × Price × (1 − Return rate)Receipts(m) = Net sales(m − Customer lag)Inventory purchases(m) = Units shipped(m + Purchase lead) × Unit inventory costSelling cash(m) = Units shipped(m) × Freight + Net sales(m) × Commission rateClosing cash(m) = Closing cash(m − 1) + Receipts − Inventory purchases − Selling cash − OverheadTreasury examples
Use timing changes to explain funding—not to erase economics
Terms negotiation: compare a two-month lag with one month to quantify the liquidity released by faster customer payment.
Seasonal buy: increase growth or inventory lead to see whether supplier prepayment creates a gap before higher sales are collected.
First-shipment cash bridge
Explain the early funding gap before collections begin
Month 1 net sales = 9,200 x $31 x (1 - 4%) = $273,792Month 1 inventory purchase = 9,200 x 1.03 x $15 = $142,140Month 1 freight and commission = 9,200 x $2.20 + $273,792 x 6% = $36,667.52With a two-month customer lag, month 1 collects nothing and also pays $98,000 of fixed overhead, so closing cash falls to $203,192.48. The complete schedule reports the first funding gap in month 2 and a month-12 balance of -$94,923.
Cash data to add
Extend the model when timing is uneven
- Invoice-level due dates and expected late payment
- Supplier deposits, credit terms, and minimum orders
- Return deductions and chargeback timing
- Tax, duty, factoring, and credit-insurance cash flows
Boundary
This is a planning calendar, not an accrual statement
Inventory accounting, receivable aging, bad debt, taxes, and product-level margin require more detailed schedules.
Wholesale pricing cash flow FAQ
Questions about terms and inventory timing
Why are early receipts zero?
The model begins without pre-existing receivables; receipts appear after the entered lag.
Can purchase lead exceed payment lag?
Yes. That can create a wider funding gap because inventory cash leaves even earlier.
Are commissions paid on collected cash?
This model pays them on net sales in the shipment month; change the model if your plan pays on collection.
Practical examples
Wholesale Pricing Cash Flow Calculator in real planning situations
- Compare net-30 and net-60 customer terms.
- See whether prepaying inventory creates a seasonal funding gap.
- Measure how returns and sales commissions reduce collected wholesale cash.
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 Wholesale Pricing Cash Flow Calculator questions
Why can growth reduce cash?
Inventory cash may leave before the higher wholesale sales are collected.
How are payment terms represented?
The selected whole-month lag shifts net customer receipts into later months.
Does this include supplier credit?
No. The model prepays inventory by the selected lead time; supplier terms require a more detailed payable schedule.