1. Accounting
  2. Banking
  3. Cash 360
  4. Cash Forecasts in Cash 360
  5. Cash Forecast Computation for a Consolidated Subsidiary

Cash Forecast Computation for a Consolidated Subsidiary

The cash forecast computation for a consolidated subsidiary varies for account categories and additional values. Read the following topics to know more.

Consolidated Cash Forecast Computation for Account Categories

The cash forecast for account categories in a consolidated subsidiary is dependent on the consolidated exchange rate, the type of exchange rate used to translate foreign currency amounts for the chart of account, and the Data To Use and % Movement values set on the Preferences page of this SuiteApp. For more information, see Setting Cash 360 Preferences.

To calculate the cash forecast for account categories in a consolidated subsidiary:

  1. Determine the type of exchange rate used to translate foreign currency amounts for the chart of account.

    1. Go to Setup > Accounting > Manage G/L > Chart of Accounts.

    2. Click View beside the name of the chart of account.

    3. Go to the General Rate Type field to determine the type of exchange rate used to translate foreign currency amounts for the chart of account.

    For more information, see Consolidated Exchange Rate Types.

  2. Determine the consolidated exchange rate to use for consolidation. The consolidated exchange rate to use varies depending on the General Rate Type field value set for the chart of account.

    • If the General Rate Type value is Current, use the consolidated exchange rate of the current posting period.

    • If the General Rate Type value is Historical or Average, use the consolidated exchange rate of the posting period on the transaction.

    For instructions to view the consolidated exchange rate, see Viewing Consolidated Exchange Rates.

  3. Compute the cash forecast using the equations in the following table.

    Forecast Period

    Consolidated Cash Forecast Computation for Account Categories Without % Movement

    Daily

    The sum of all transaction amounts multiplied by the consolidated exchange rate (depending on the general rate type), divided by the Data To Use value in months, multiplied by 12 months, and divided by 365 days.

    Consolidated Daily Cash Forecast =(Sum of transaction amount ×Consolidated exchange rate depending on the General Rate Type) ÷Data To Use in months ×12 months ÷365 days

    Weekly

    The sum of all transaction amounts multiplied by the consolidated exchange rate (depending on the general rate type), divided by the Data to Use value in months, multiplied by 12 months, and divided by 52 weeks.

    Consolidated Weekly Cash Forecast=(Sum of transaction amount ×Consolidated exchange rate depending on the General Rate Type) ÷Data To Use in months ×12 months ÷52 weeks

    Monthly

    The sum of all transaction amounts multiplied by the consolidated exchange rate (depending on the general rate type) and divided by the Data To Use value in months.

    Consolidated Monthly Cash Forecast =(Sum of transaction amount ×Consolidated exchange rate depending on the General Rate Type) ÷Data To Use in months

Consolidated Cash Forecast Computation for Additional Values

The cash forecast for additional values in a consolidated subsidiary is dependent on the consolidated exchange rate, whether the amount is considered as outflow or inflow, the forecast period, recurrence, and recurrence type as specified on the SuiteApp's Preferences page. For more information, see Setting Cash 360 Preferences.

The consolidated exchange rate type used for additional values is always the Current consolidated exchange rate. For more information about the consolidated exchange rate types, see Consolidated Exchange Rate Types.

The consolidated cash forecast for additional values is calculated as the additional value amount multiplied by the current consolidated exchange rate. The recurrence, recurrence type, and forecast period determines how the cash forecast is displayed on the Forecast Details table and on the dashboard.

Consolidated cash forecast for additional values =Additional value amount ×Current consolidated exchange rate

The following table shows examples of how the cash forecast for additional values is calculated for consolidated subsidiaries.

Date

Amount

Type

Recurrence

Recurrence Type

Sample Current Consolidated Exchange Rate

Forecast Period

Consolidated Cash Forecast

Today

1000

Inflow

1

Daily

0.934

5 days

934 appears on the cash forecast as an inflow amount for the current date.

1st day of June

2000

Outflow

8

Weekly

0.848 for June

0.995 for July

12 weeks

1696 appears on the Forecast Details table as an outflow amount for four weeks starting on the 1st week of June.

1990 appears on the Forecast Details table as an outflow amount for four weeks starting on the first week of July.

1st day of September

3000

Inflow

2

Monthly

.779 for September

.834 for October

6 months

2337 appears on the cash forecast as an inflow amount for the month of September.

2502 appears on the cash forecast as an inflow amount for the month of October.

Related Topics

General Notices