Variance Analysis in Cash Flow Projections

Variance analysis in Embat allows you to compare your initial forecasts with what actually happened in your bank accounts. This feature helps you easily review whether expected collections and payments were completed, if there were unexpected transactions, or if any forecasts did not materialize — all from a single view with full traceability.

What is a variance?

A variance represents a difference between what was projected and what actually occurred. In Embat, this analysis always takes place within a specific projection, allowing you to precisely understand which forecasts were fulfilled and which were not.

The net variance is calculated as follows:

Net variance = Unexpected transactions − Unfulfilled forecasts

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

Where can I view variances?

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

• From the alert banner, which will only appear if there are periods with variances pending review.

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

1. Expected and occurred

You’ll be able to see all forecasts that were fulfilled. TellMe, our AI, continuously detects matches in real time between your pending forecasts and actual incoming transactions. If a pattern is detected, it links them and marks the forecast as "paid" — meaning it is no longer shown as pending in your cash flow. Additionally, you can:

• View the details of each match (date, description, amount, etc.).
• Check the type of match. Matches can be automatic (via TellMe) or manual, by linking forecasts and transactions in the sections explained below.
• Undo matches if you need to correct them. If you want to make a forecast pending again because it shouldn't be linked to a transaction, you can unlink them by clicking the button in the top-right corner of the match.

2. Expected but not occurred

Forecasts whose due date has passed but are not linked to any transaction. In this view, you can:

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

3. Unexpected Transactions

Transactions that were not forecasted. In this section, you can:

• View transactions that arrived without any associated forecast.
• Link them to pending forecasts (fully or partially).

All actions you take are reflected in real time across variance counters, tables, and summaries.

Important: treasury-only reconciliations

All reconciliations made in the variance analysis —whether automatic or manual— are exclusively for treasury purposes. They do not affect your company’s official accounting nor modify any accounting records. The goal is to provide better visibility over liquidity without interfering with accounting systems.

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