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Set your buying capacity

Your buying capacity is the cash and credit you can put towards stock, minus the bank balance you always keep. Set it once and every demand plan shows, week by week, what's left to spend after the bills you already owe.

Before you begin​

  • You need the Edit capacity permission (Cash-Constrained Buying). Reading a balance from QuickBooks Online or Xero also needs Read accounting balance and a connected accounting integration.
  • Know your current bank balance, your credit line limit and how much of it you've drawn.

Steps​

  1. Go to Inventory → Demand Planning.
  2. In the Buying capacity card, click Set your buying capacity. If you've set it before, click Edit instead.
  3. On the Cash & credit tab, under Cash on hand comes from, choose Enter manually and type your bank balance in Cash on hand. To read it from your books instead, choose Use QuickBooks balance (or Xero), tick the Bank accounts to count, and confirm the balance it reads.
  4. Enter your Credit line limit and how much is Drawn. Available credit shows the difference.
  5. Leave Count expected sales payouts as cash coming in off unless you want planned sales payouts counted as cash before they arrive.
  6. Set the Horizon: how many weeks ahead to plan, between 4 and 26.
  7. Choose how to treat payables with no due date yet: Count in week 1 (conservative) or Leave out.
  8. Open the Reserve tab and enter your Base reserve: the bank balance you never plan below.
  9. To keep more cash back for part of the year, click Add override, enter a label (for example Holiday peak), a start date, an end date and the reserve for those weeks, then click Save on the row. Reserve by week shows the reserve each week will use.
  10. To change how lines are ranked, open the Ranking tab and adjust the Stockout risk weights, Low confidence × or Default markup %. Live fit preview shows how many lines would fit before you save. Reset to defaults puts the defaults back.
  11. Click Save.

The Buying capacity card now shows your capacity, the spendable cash for each week and the tightest week.

note

Seasonal overrides save as soon as you add them. The base reserve and the other settings save when you click Save.

Next steps​

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