The liquidity forecast integrates expected payments in and out made in financial accounting, procurement, purchasing, and sales and distribution, with a medium-to-long-term planning tool It contains relevant information from subledger account on the debit- and credit-side payment flows. The cash position and liquidity forecast contain foreign currency balances and open items.

In addition to the short-term liquidity position in your bank accounts, illustrated in the cash position, a medium-term liquidity forecast is very important. From a commercial point of view, this means a detailed evaluation of subledger accounts. This is based on the expected payments in and out on both the debit and credit sides, along with the relevant open items.

Vendors and cuzstomers are split into planning groups that reflect particular characteristics, behaviors, or risks. Planning groups answer your questions about which customer or vendor group is responsible for a particular balance.

Information on planning groups originates from subledger accounts. Incoming and outgoing payments are classified by the probability of the funds coming in or going out, the amount in question, or the type of commercial relationship. Examples of planning groups included domestic vendors, foreign customers, or related companies.

Like the bank accounts in the cash position, the planning groups are supplied with data from FI postings and planning memo records (planned items). Purchase orders from Materials Management (MM) and orders from Sales and Distribution (SD) may also be included.