Predictive Cash Forecasting Now Supports Cash Buffer and Cash Over Buffer Line Items

Predictive Cash Forecasting now 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 Buffer has no value, Cash Over Buffer is 0.)

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

Summary Dashboard

To input values for Cash Buffer (a one-time activity for the year), from Daily Cash Forecast or Periodic Cash Forecast, click Assumptions and then click Cash Buffer. After you input values, run the Process Forecast rule. Updates are reflected in the Summary dashboard.  

Additionally, as part of this enhancement, the Set Forecast Methods vertical tab has been renamed to Assumptions.

Business Benefit: The new Cash Buffer and Cash Over Buffer line items allows Cash Managers more detailed cash flow analysis.

Key Resources

• Administering Predictive Cash Forecasting
  • Implementation Checklist for Administrators
• Working with Predictive Cash Forecasting
  • Performing Daily and Periodic Cash Forecasting