Setting Assumptions for the Cash Buffer

Set the cash buffer to use for each entity.

Predictive Cash Forecasting supports Cash Buffer and Cash Over Buffer line items.

  • Cash Buffer is the excess cash a company or individual holds beyond the expected expenses and liabilities. It acts as a financial cushion for unforeseen circumstances. Cash Buffer is an input value. Usually, companies keep this buffer across periods, and it can be kept by each entity.
  • Cash Over Buffer is the amount of cash held over and above the designated Cash Buffer level, allowing for additional flexibility or investments. Cash Over Buffer is a calculated value, the difference between Closing Balance and Cash Buffer. This number allows the cash manager to assess the risk of the cash balance going below the cash buffer. (If the Cash Bufferhas no value, Cash Over Bufferis 0.)

Cash Managers can review the Cash Buffer and Cash Over Buffer on the Summary dashboard:

Note:

Use the Cash Manager Flow navigation flow to set the cash buffer.

To set the Cash Buffer (a one-time activity for the year):

  1. From the Home page, click Daily Cash Forecast, then click Assumptions and then click Cash Buffer.
  2. Enter or load values for each entity.

  3. After you input values, run the Process Forecast rule. Updates are reflected in the Summary dashboard.