Considerations for Cash Forecasting

Prior to cash forecasting, cash positioning is usually performed on a daily basis by every cash management or treasury department. The goal of the cash position is to estimate with an acceptable degree of confidence the projected closing bank account balances.

In doing so, cash forecasting decisions such as investing and borrowing, can be made in a timely manner.


Consider the following when determining your investing or borrowing situations:

  • Cash Forecasting: Is the estimation of the cash position based on the following sources: Payables (Payables Invoices, Payables Payments), Receivables (Receivables Invoices, Receivables Receipts), Payroll (Payroll payments), and External transactions.

  • The Cash Forecast reports are now displaying Payables and Receivables invoices that are due and overdue, including unpaid or partially paid invoices. It ensures the right level of liquidity is represented and you're including all aspects of your cash outflows.

  • The overdue invoice amounts are displayed in the current date columns. By drilling down to the transaction, you can find the detail information such as invoice date and due date.

  • Prior Day Bank Statement: Statement or statements sent by the bank indicating previous day banking activity, cash transactions such as deposits or withdrawals, and account balances.