Optimizing Cash Flow Forecasting with SAP Analytics Cloud (SAC) for Planning: Tailored Solutions for Your Business Needs!
Forecasting cash flow presents several challenges, primarily due to the complexity of its components.
Cash flow includes various elements (as AR, AP, payroll, and CAPEX) each requiring accurate tracking and prediction.
Different departments often handle these components, and their differing priorities can make it difficult to create a cohesive forecast.
Additionally, uncertainty in predicting income and expenses necessitates scenario analysis to avoid overly optimistic or pessimistic forecasts.
With a robust SAP Analytics Cloud (SAC) for Planning structure, these challenges can be effectively addressed.
SAC for Planning is a multi-dimensional system that enables methodical planning for each cash flow component.
If you opt for a simpler solution, a dedicated cash flow model can easily be built, calculating closing cash flow based on the actual opening balance and expected changes. Assumptions can be parameterized, and what-if scenarios can be implemented. KPI’s can be calculated, and Dashboard added for visualization.
For a more comprehensive approach that addresses the challenge of multiple responsibilities, each department can work with models tailored to their specific needs, allowing them to plan at the required detail level, and exporting their result to Cashflow.
For example, the CAPEX line can be derived from a model that breaks down detailed elements like machinery, vehicles, real estate, etc. allowing the responsible department to test scenarios and seamlessly incorporate the final CAPEX into the cash flow projection.
This approach can be applied to every component of cash flow, ensuring not only the creation of a cohesive forecast but also providing the company with the ability to easily drill down and investigate the underlying data for deeper insights.
No matter which solution suits you best, at Convista, we would be delighted to implement it for you!
