2 Predictive Cash Forecasting Task Overview for Cash Managers

Review the tasks you'll perform as a Cash Manager for Predictive Cash Forecasting.

In general, follow these steps to work as a Cash Manager for Predictive Cash Forecasting.

1. Set user variables. See Setting User Variables.
2. Review the driver-based forecast methods, used to drive the calculations for cash forecasts, that are set as the default forecast methods for each line item for your entity. Administrators typically perform this one-time setup task. But as a Cash Manager, you can make changes for your entity any time if needed. See Setting Assumptions for Forecast Methods.

3. For line item categories that use Cash Drivers as the forecast method, set up cash inflow and cash outflow driver assumptions by setting up pay terms and other cash flow drivers. This is typically a one-time setup task, or possibly an infrequent task if you need to make adjustments to the assumptions. See:

   • Setting Up Cash Inflow Driver Assumptions for Driver-Based Planning
   • Setting Up Cash Outflow Driver Assumptions for Driver-Based Planning

   Note:

   These steps assume that cash Driver Input data has already been loaded, but you can enter or adjust Assumptions values or period values.

   Calculate cash inflow and outflow by saving the driver forms, which triggers driver calculations for each of the driver categories.

4. For line items that use Statistical Prediction as the forecast method, you can use Predictive Planning to derive your cash forecast. See Using Predictive Planning for Cash Forecasting.

5. For line items that use trend-based forecasting as the forecast method (for periodic forecasting only), set up trend assumptions. See Setting up Trend Assumptions for Trend-Based Forecasting (Periodic Forecasting Only).

   Calculate cash inflow and outflow by saving the driver forms, which triggers driver calculations.

6. For any line items that use Manual Input as the forecasting method, enter forecast values. See Manually Entering Data.
7. Review the Summary dashboard.

   The Cash Manager Summary dashboard provides a snapshot of the cashflow KPIs and an interactive chart for exploring cash flows. It includes several KPIs that indicates the cash health over the cash flow period. In addition, it also covers Operating and Non-operating Cash Flows, as well as cash positions.

   See Performing Daily and Periodic Cash Forecasting.

8. Review and update your cash forecast using the Rolling Forecast form. Review and adjust the overall forecast. Review the cash flows, and adjust if needed based on any additional information. See Performing Daily and Periodic Cash Forecasting.
9. After you make adjustments, you or your administrator must run rules to process and convert the data. You administrator must also run data maps to push the data to the reporting cube so you can see results on the Analysis dashboards.

   If you are working in multiple currencies, there are additional currency conversion and rollup rules and data maps to run.

   Rules to process the forecast:

   • Daily Process Actuals / Periodic Process Actuals.
   • Daily Process Forecast / Periodic Process Forecast
   • Daily Rollup / Periodic Rollup

   Rules to convert currency:

   • In the Daily cube (OEP_DCSH)—Daily Currency Translation to Entity Currency
   • In the Periodic cube (OEP_PCSH)—Periodic Currency Translation to Entity Currency
   • In the Daily cube (OEP_DCSH)—Daily Currency Translation to Reporting Currency
   • In the Periodic cube (OEP_PCSH)—Periodic Currency Translation to Reporting Currency
10. Review analysis dashboards. From the Home page, click Analysis. See Analyzing Cash Forecasts.
11. Review any reports your administrator created. From the Home page, click Reports, and then select a report.
12. If your administrator set up IPM Insights, review any insights that have been generated. From the Home page, click IPM and then click Insights. For more information about working with insights, see Using IPM Insights to Inform Your Decision-Making in Working with Planning.

To get started, from the Home page, click Daily Cash Forecast or Periodic Cash Forecast, and then select a component from the vertical tabs:

Table 2-1 Cash Manager Tasks

Task	Perform These Tasks	More Information
Daily Rolling Forecast / Periodic Rolling Forecast	Summary—Review the Summary dashboard. The Cash Manager Summary dashboard provides a snapshot of the cashflow KPIs and an interactive chart for exploring cash flows. It includes several KPIs that indicates the cash health over the cash flow period. In addition, it also covers Operating and Non-operating Cash Flows, as well as cash positions. Rolling Forecast—Review and adjust the forecast for cash inflows and cash outflows. Review actuals, the rolling forecast, and actuals versus daily/periodic forecast. You'll do most of your work from this form. Right-click a line item in the form to see additional options for working with cash forecasts. Cash from Investing Activities—Review and plan your cash from investing activities. Driver-based forecasting is not available for cash from investing activities. This form is for direct input only. Cash from Financing Activities—Review and plan your cash from financing activities. Driver-based forecasting is not available for cash from financing activities. This form is for direct input only.	Performing Daily and Periodic Cash Forecasting
Trend	Enter assumptions for trend-based planning.	Setting up Trend Assumptions for Trend-Based Forecasting (Periodic Forecasting Only)
Drivers - Cash Inflow	Review and adjust cash inflow drivers and set driver assumptions.	Setting Up Cash Inflow Driver Assumptions for Driver-Based Planning
Driver Assumptions - Outflow	Set assumptions for cash outflow drivers for driver-based planning.	Setting Up Cash Outflow Driver Assumptions for Driver-Based Planning
Predicted	Use Predictive Planning to forecast cash based on the historical data for the line item using time-series forecasting techniques.	Using Predictive Planning for Cash Forecasting
Manual Input	Enter forecast data manually, for line items aren't determined by any automated logic.	Manually Entering Data
Set Forecast Method	Typically, forecast methods for line items are set up by your administrator. You can review the forecast methods for each line item. If needed, you can modify the forecast methods for line items for your entity.	Setting Assumptions for Forecast Methods