Build a cash calendar before placing the next inventory order

A reorder decision needs quantities and cash dates. Record the proposed order value, deposit, remaining payment, freight, duties where relevant, and payment currency. Confirm which dates are contractual and which are estimates from the supplier.

Separate existing committed purchase orders from the new order being considered. The business may have enough cash for the new deposit but not for the final balances on earlier orders. A stock-on-hand report will not reveal those unpaid commitments.

For an illustrative $24,000 purchase, assume a 30% deposit of $7,200 now and a $16,800 balance before shipment. Add a separate $3,000 logistics estimate. The cash plan needs all three amounts on their expected dates, even though the warehouse has not received the stock yet.

Estimate when the existing and incoming products will sell and when those sales will become available bank cash. Use observed sell-through and payout behavior where possible. Keep promotional sales assumptions, processor holds, and refunds visible rather than assuming every unit sells immediately at full price.

A supplier delay can postpone sales while leaving deposits paid. A customer-demand delay leaves more stock on hand after arrival. Model each scenario with its own dates and costs, including storage or expedited shipping only where there is a supported reason to expect them.

Check the forecast's lowest cash point against payroll, taxes, existing payables, and the company's chosen buffer. Avoid counting a future supplier credit or unapproved financing facility as available cash. Identify what action would be taken if the low point is unacceptable before the purchase order is signed.

Possible changes include a smaller first batch, staged deliveries, different payment terms, or delaying a less urgent order. Compare the total cost and operational consequences of each. A smaller order may cost more per unit but require less cash at the critical date.

After approval, replace estimates with actual supplier confirmations and bank payments. Review the calendar when lead times or sales assumptions change, and reconcile completed orders to the purchasing records. Keep the decision version so the next reorder can use the difference between what was expected and what happened.