Oracle Cash ForeCasting

PowerPoint PresentationCash Forecasting
Objectives
After completing this lesson, you should be able to do the following:
Define a cash forecast template
Generate a cash forecast
Modify a cash forecast
Identify implementation considerations
Agenda
Overview
Generating a Cash Forecast
Modifying a Cash Forecast
Implementation Considerations
Overview of Cash Forecasting
Use Cash Forecasting to:
Anticipate the flow of cash in and out of your business
Evaluate your company’s liquidity position
Project your cash needs
Overview of Cash Forecasting
Cash forecasting is a planning tool to help you anticipate the flow of cash in and out of your business. Use cash forecasting to:
Anticipate the cash inflows and outflows in your business
Project your cash needs more accurately
Evaluate your liquidity and currency exposure to better manage your cash resources
Earn more income through better cash investments
Minimize borrowing costs
Reduce bankruptcy risks
Sources for Cash Forecasting
General Ledger: revenue account budget amounts
Treasury: money market, foreign exchange, exposure transactions, investment income
Projects: billing events, budget inflows
Sales: sales opportunities that have not been ordered or invoiced
Order Management: uninvoiced sales orders projected to be paid by customer, excluding commitments
External sources: external inflow transactions from open interfaces
User defined: Manually entered amounts
Cash Outflow Sources
General Ledger: GL encumbrances and GL budget outflows
Treasury: outflow transactions
Payroll: historical payroll expenses
External sources: outflow transactions from external sources
User defined: Manually entered amounts
Copyright © 2007, Oracle. All rights reserved.
Cash Forecasting and Cash Positioning
Cash Forecasting
Cash Positioning
Temporary storage for live data
After leaving UI page
Defining a Cash Forecast Template
A cash forecast template is similar to a spreadsheet.
Each row defines the cash flow source.
Each column defines the forecast period in general ledger periods or days.
Forecast Period
Defining a Cash Forecast Template
A template contains cash forecast specifications. When creating a template, you specify the number and type of rows and columns. Templates determine the presentation of sources (rows) and forecast periods (columns) for your cash forecasts. Templates also include the name, description, and forecast period types ( GL periods or days). Each row contains a source type, such as supplier invoices, and selection criteria, such as set of books, pay group, and bank account.
You can specify how to organize cash forecast data, including which sources supply forecast data (rows), and for which forecast periods (columns) you are generating data. Once a template definition is complete, you can submit a request to produce timely cash forecasts by gathering current source information from the selected Oracle Applications.
Forecasting Overdue Transactions
You can include or exclude overdue transactions for all appropriate source transaction types in cash forecasts. Including overdue transactions gives you an accurate representation of potential cash inflows and outflows.
Overdue transactions are collected into one forecast period and displayed in the Overdue Column in the Cash Forecast and the Cash Forecast Report.
Refer to Practice - Create a Forecast Template [LAB3F79Y]
Define a forecast template
Cash Forecasts by Days
Submit the forecast from:
You can define reusable cash forecast templates to generate cash forecasts. A cash forecast template is a matrix with each row defining the cash flow source and each column defining the forecast period in GL periods or days. When you submit a forecast, you generate exactly the forecast that you need by entering submission parameters. When you submit a cash forecast, Cash Management collects the necessary source data and summarizes them as cash forecast amounts, based on the forecast period specifications. The forecast data is then available for update, inquiry, reporting, or export to any spreadsheet application.
Cash Management determines projected cash activity dates based on your specifications. If you have created a forecast template with a user-defined source type, Cash Management creates a row with zeroes when you generate a cash forecast. If you want to enter amounts manually in the forecast amount cells for these types, click on the zero in the forecast cell and add transactions in the Source Transactions Details page.
You can generate a new cash forecast from a template, with forecast amounts calculated automatically. You query the template or a previously run forecast in the Forecast Templates Search and Results page and select the Run Forecast icon or use the Submit Request window. You can also quickly create a manually entered cash forecast.
Refer to Practice – Generate a Forecast [LAB3F7AY]
Generating a Cash Forecast: Multicurrency Forecasts
At submission time, you can select to:
Generate a forecast in any currency
Analyze currency exposure by forecasting transactions in a specified currency
Generating a Cash Forecast: Multicurrency Forecasts
By using currency related submission parameters, convert all transaction amounts to a desired currency to display in the result. Set the program to pick only the transactions in certain transaction currency or functional currency, if required.
No
No
No
N/A
Forecasts
No
Yes, with option to modify original template and all existing forecasts based on that template, or to create new template
No
Yes. Modify values directly in fields by drilling down to the Source Transactions Details page.
You can modify cash forecast templates and forecasts, with some limitations. The table on the slide addresses what you can change on cash forecast templates and cash forecasts.
Exporting Cash Forecasts to Your Spreadsheet Application
Cash
Management
Sources
Inflows
Outflows
Exporting Cash Forecasts to Your Spreadsheet Application
You can transfer cash forecast results to your spreadsheet application. Excel can be very useful to manipulate information for analysis and graphical representation.
Use the Export button in the Cash Forecast Results page to export cash forecasts from Cash Management to Microsoft Excel.
Implementation Considerations
Identify who will be responsible for creating the templates, and how many will be needed.
Identify the correct sources, transaction types, and parameters.
Identify security issues, who has access to forecasts.
Identify any lead time requirements.
Identify any unique naming conventions.
Verify the forecast numbers before moving the forecast template to production.
Using Cash Forecasting Reports
Cash Management automatically generates:
Cash Forecast Execution Report
Using Cash Forecasting Reports
You can also run:
Cash Forecast Template Listing Report: shows details of a cash forecast template
Purge Cash Forecasts Report: purges old cash forecasting results
Cash Forecast Template Listing Report
Use this report to see details for a cash forecast template.
Run this report from the Submit Request window.
Cash Forecast Execution Report
Includes data errors produced by the Submit Forecasts programs when you generate a cash forecast.
Automatically generated when you generate a cash forecast.
Can be printed later using Submit Requests.
Cash Forecast Report
Automatically generated when you successfully run a cash forecast template.
Can be printed later using Submit Requests.
If you submit this report using Oracle Report eXchange, then you can export the data to your spreadsheet application.
You can also view cash forecast amounts online.
Purge Cash Forecasts Report
Automatically generated when you run the Purge Cash Forecasts program.
Lists cash forecasts that have been successfully purged.
Refer to Practice – Generate a Cash Forecast Report[LAB3F7BY]
Summary
Define a cash forecast template
Generate a cash forecast
Modify a cash forecast
Identify implementation considerations
Source Type
Due Date AR_PAYMENT_SCHEDULES_ALL.Due Date

Oracle Cash ForeCasting

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