Cashflow Forecasting Calculation Logic

Embat’s cashflow forecasting logic ensures accurate and consistent insight into your future cash positions. This article explains how each cell is calculated based on the period it represents (past, current, or future) and the selected forecast source.

How are forecasted values calculated?

Embat applies a unified methodology across all periodicities (daily, weekly, monthly, quarterly), depending on the time horizon:

1. Past Periods (End date before today)

Logic: Based solely on actual transactions. Forecasts are not considered for past periods.

Calculation:

Cell Value = Sum of all actual transactions in the category during that period.

This ensures a clean historical view focused only on what actually happened.

2. Current Period (Includes today)

Logic: Combines actual transactions up to today (Period-to-Date) with forecasts for the remaining days of the period.

Calculation:

• If the effective forecast source is automatic forecasts:

  Cell Value = Actuals to date + Forecasts with due dates from today until period end
  
  

• If the source is manual, historical/AI, or a custom value:

  Cell Value = MAX(F_{Period}, A_{YTD})

  Where:

  • F_{Period} = total forecasted value for the period

  • A_{YTD} = sum of actual transactions to date

This ensures the cell never displays less than what has already occurred.

3. Future Periods (Start date after today)

Logic: Based solely on forecasted cashflows—actuals are not included.

Calculation: Cell Value = Sum of the effective forecasts for that category in the given period

If you have any further questions, contact the Customer Experience team or submit a request using this link.