Overview of Cash & Liquidity Management

Cash Forecasting:
1. A cash position report gives the bank balance over a few days in your bank accounts.

Liquidity forecast:
1. The Liquidity Forecast reproduces the liquidity trend in the sub ledger accounts i.e. Customers and Vendors. 2. The Liquidity Forecast is more useful then the Cash position report, since we actually can project our liquidity trend over the next few weeks or next few months. 3. The data in liquidity forecast is captured from the following source: Purchase requisition. Purchase orders. Scheduling agreement. Sales orders. Vendor invoices. Customer invoices

Overview Cash & Liquidity Management

Cash Forecasting

Up-to-date overview of bank accounts by value date Short-term (1-2 days) Data Sources: Bank accounts Bank clearing accounts Memo records Daily forecast of liquidity trends

Liquidity Forecasting

Projection of receipts and disbursements Medium-term (1 -24 weeks) Integration of all data in sub ledgers Sales orders Purchase orders Manual planning records FI invoices Tools for optimizing cash investment and borrowing