In Embat, future cash flows can be calculated using different methods depending on the availability of data and the nature of the financial movements. The choice of calculation method depends on the following factors:
- Data accuracy
- Availability of ERP-imported invoices
- Transaction history for the category
- Need for manual adjustments
1. Forecasts method
This method uses forecasts generated or imported from the Forecasts module. It is recommended when the flows of a category are accurate and based on ERP-registered invoices.
Key features:
- Based on accounting or manual forecasts.
- Not editable from the cash flow table.
- Offers greater accuracy when inflows and outflows are well-defined.
When to use it:
- When the category has predefined flows with high reliability.
- When the data comes from ERP-imported invoices.
2. Historical data method
This method analyzes patterns from past transactions to estimate future values. It is recommended for categories without forecasts but with a clear seasonality or predictable behavior.
Key features:
- Calculates projections based on past trends.
- Allows manual overwriting of values.
- Useful for categories with regular movement patterns.
When to use it:
- When no forecasts are available, but there is a strong transaction history.
- When predictable patterns are detected in the category.
3. Custom method
This method allows manual entry of values in each cell of the cash flow table. It is useful when neither forecasts nor historical data provide a reliable estimate.
Key features:
- Values can be edited at any time.
- Does not rely on historical data or forecasts.
- Facilitates dynamic adjustment of cash flows.
When to use it:
- When the category has no ERP invoices or clear transaction patterns.
- When manual adjustments are needed on a recurring basis.
Additional information
- Only one calculation method can be applied per subcategory (child category).
- Calculation methods cannot be changed in parent categories, as they aggregate the cash flow variations from their child categories.
If you have any further questions, feel free to contact the Customer Experience team or submit a request via this link.
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