In Decrementation Mode and in Budget Decrementation Mode, Commercial Forecasts are managed globally and not entry by entry. The payments from the Cash module reduce (decrementation) the forecasts saved in FX, without strict correspondence between forecasts and actuals. The monthly position is gradually decreased until being liquidated.
In Decrementation Mode, the FX module performs a decrementation of the balances by company, flow type, transaction currency and date. There is no premium, nor discount of the actuals. The Budget Decrementation Mode adds up a fourth criterion: the budget code.
- Case 1
When the payments amount in the Cash module is higher than the monthly forecasts amount in FX, the balance (the remaining amount) is automatically set to zero.
Example
Disbursements forecast for month M: 250
Payments amount for month M: 280
Position of disbursements forecast: 0
When the monthly forecasts amount is higher than the payments amount in the Cash module, the balance (the remaining amount) in FX must be cancelled (it is automatically set to zero). When a new payment arrives in Cash, the amount in position is automatically updated (it is set to zero), the forecasted transaction is settled and disappears from the Cash Position Worksheet.
- Case 2
When the payments amount in the Cash module is lower than the monthly forecasts amount in FX, the balance (the remaining amount) is automatically decremented.
Example
Receipt forecast for month M: 100
Payments amount for month M: 20
Position of receipt forecast: 80
- Case 3
If the payment in the Cash module represents several monthly forecasts, the decrementation follows the FIFO principle. The decrementation goes from the entered amounts to the oldest dates.
Example
Receipt forecast for month M: 70
Consisting of 3 forecasts:
- 30, the 12th of month M
- 10, the 17th of month M
- 30, the 25th of month M
Received payments:
- 31, the 25th of month M
- 10, the 17th of month M
New position of forecasts: 29
In FIFO mode, the first amount 31 decrements the forecast 30 on the 12th of month M, then decrements by 1 the forecast 10 of the 17th of month M.
The second amount 10 decrements the remaining 9 and by 1 the forecast 30 of the 25th of month M.
