Summary

Corporations want to guarantee the availability of liquidity at all times. Liquidity forecasts are one of the core instruments that alert you of critical cash levels. Consequently, such type of forecast helps to avoid the inability of financing your entities.

What to collect?

This use case describes the collection of net cash flows per currency. The forecast is prepared weekly and is done for the following 5 weeks. Reporting unit wise, the forecast is being reported by legal entities. Each legal entity has one or more employees responsible for submitting the Liquidity Forecast. Individual legal entities can have one or more bank accounts. As a consequence, the template’s currencies need to depend on the legal entity selected.

How to build?

The Liquidity Forecast of this use case involves two Matrix widgets (one for displaying the opening balance of the forecast’s first week and another one for the net cash flow forecast itself). Moreover, we use two description widgets for displaying some header information.

Rolling net cash starting point

As mentioned, the first Matrix shows the opening balance at the beginning of the reporting week (or end of the week before). That means, if the first reporting period is the first week of 2022, the cash balance is the one of the last week of 2021. The columns of the Matrix shows the Currency list.

Net cash movements next five weeks

The second Matrix will be used by users to submit the actual forecast figures. The rows of the Matrix consist of two lists:

  • A system list called “ISO weeks” (this list includes two hierarchy levels, - one for years and one for weeks).
  • A custom list with two items (CF, which will be used for the net cash flow movement of the week and Balance, which is a calculated item displaying the current cash balance considering the movement entered by the user).

In the columns of the Matrix the Currency list is used (the same Currency list is also used in the first Matrix widget).

Definition view of the Liquidity Forecast template
Definition view of the Liquidity Forecast template

Reporting units

Reporting units are the units that need to fill out the Liquidity Forecast. As the use case requires collecting data per legal entity, reporting units represent legal entities. Each legal entity may have assigned one or more users. These users will be responsible for filling out the forecast.

Configuration of reporting units (legal entities)
Configuration of reporting units (legal entities)

Mappings

A mapping between two lists, “Reporting Unit” and “Currency” is created. A mapping is a dependency between multiple lists which define valid combinations in the data entry view. In this use case, mappings are used to tell colea that legal entity “t2s Austria Limited” is only able to use the currencies USD, CHF and EUR.

Mapping between Reporting Unit and Currency
Mapping between Reporting Unit and Currency

How it looks like for your users

The data entry view looks similar to definition view but includes Point Of View elements at the top. The opening cash balance per currency is being imported using colea import functions.

Based on the CF movement entered, the Balance is calculated by summing up all CF movements up to the current week.

Data entry view of Liquidity Forecast
Data entry view of Liquidity Forecast