Variance Analysis in Cash Flow Projections

Variance analysis in Embat allows you to compare what you had forecasted with what actually occurred in your bank accounts. This functionality helps you easily review whether expected inflows and outflows took place, if there were any unexpected movements, or if any forecasts did not materialize. All from a single view and with complete traceability.

What is a variance?

A variance represents a difference between what was projected and what actually occurred. In Embat, this analysis is always done within the context of a specific projection, allowing you to clearly understand which forecasts have been fulfilled and which have not.

The net variance is calculated as follows:

Net variance = Unexpected transactions − Forecasts not fulfilled

This value is shown for each period in the projection (e.g., day, week, or month), allowing you to quickly identify which periods require review.

Where can I see variances?

You can access variance analysis from two places within the cash flow module:

• From the projection, by clicking on the variance icon in the “Net variance” row of the table.
• From the alert banner, which appears only if there are past periods with variances pending review.

Once inside, you’ll see the information grouped into three main sections:

1. Expected & Occurred

Forecasts that were fulfilled and have a corresponding transaction. In this section, you can:

• View the details of each matched pair (date, concept, amount, etc.).
• See whether the match was automatic (TellMe) or manual.
• Unmatch pairs if you need to make corrections.

2. Expected & Didn’t Occur

Forecasts with a past due date but no matching transaction. In this section, you can:

• Review and move forecasts to a future period if the payment/collection is still expected.
• Hide forecasts that are no longer relevant.
• Manually or partially match them with transactions.

3. Unexpected Transactions

Bank movements that were not previously forecasted. In this view, you can:

• Review transactions that arrived without any associated forecast.
• Match them with pending forecasts (fully or partially).
• Manage these cases to improve future projections.

All actions update the variance counters, tables, and summaries in real time.

What else can I do?

• Mark period as reviewed: If you’ve already reviewed a period, you can mark it as reviewed. This will hide it from alerts in the cash flow view and help you focus only on pending periods.
• Navigate between periods: Use the arrows at the top of the screen to move between periods without leaving the analysis.
• Customize the view: You can show or hide the “Net variance” row using the visualization settings panel.

Important: treasury-only reconciliation

All reconciliations done within the variance analysis —whether automatic or manual— are exclusively for treasury purposes. They do not affect your company’s official accounting or alter any financial records. The goal is to give you clearer visibility into your liquidity without interfering with your accounting systems.

If you have any further questions, feel free to contact the Customer Experience team or submit a request via this link.