Understanding Cash Balance Computation
Agicap calculates your cash balance using a step-by-step approach, starting from a given point (current cash balance) and adding or subtracting all transactions or forecasts. Cash balances are used to draw the Cash Balance curve (🔵 blue line in the CashFlow graph) and display the cash balances at the beginning and end of periods in the CashFlow table under the graph.
General Cash Balance Computation Formula
At its core, the cash balance at the end of a period is calculated by taking the cash balance at the end of the previous period and adding or subtracting the cashflow variation during the current period:
Cash balance at end of period = Cash balance at end of previous period ± Cashflow variation during the period
What is Cashflow Variation and How to Compute It
The cashflow variation represents the net change in cash during a period. It can be calculated differently depending on whether you're looking at past, current, or future periods.
For Past Periods
In past periods, the cashflow variation is based on actual paid transactions:
Cashflow variation = Sum of all paid transactions (including ignored transactions) included in non-ignored bank accounts during the period
Note:
Ignored paid transactions on non-ignored bank accounts are included in the cashflow variation.
Transactions on ignored bank accounts are not included.
For Future Periods
In future periods, the cashflow variation is calculated by taking the maximum of your forecasts and expected transactions:
Cashflow variation = Maximum of (forecasts, sum of all expected transactions on non-ignored bank accounts during the period)
Note:
Ignored expected transactions are not included in the calculation.
For the Current Period
The current period involves a combination of both paid and expected transactions. The calculation can be more complex and may need to be done category by category, especially if you have sub-categories with forecasts.
Understanding the Difference from CashFlow Table Values
It's important to note that the cashflow variation used in the cash balance computation is not the same as the values displayed in the cells of the CashFlow table. While both involve transactions and forecasts, they use different criteria for inclusion:
Cash balance computation includes all paid transactions (including ignored paid transactions) on non-ignored bank accounts.
CashFlow table values may exclude certain transactions and are organized differently based on categories and forecasting methods.
Therefore, you might notice differences when comparing cash balance calculations to the values shown in your CashFlow table.
Advanced Knowledge
Multi-Accounts View
When displaying only a selection of bank accounts, the cash balance computation includes all non-ignored bank accounts, unless all the selected accounts are ignored. This means:
If some accounts are ignored, their transactions won't impact the cash balance calculation.
If you view an ignored account individually, its cash balance and variations are displayed.
Forecasts on Ignored Accounts
Forecasts set on bank accounts that are ignored from the company cash balance have specific behaviors:
Consolidated View: The cash balance is not impacted by the forecasts on ignored accounts.
Individual Account View: The cash balance and its variation are impacted by the forecast.
Multi-Currency Accounts
For bank accounts in different currencies, Agicap applies exchange rates to consolidate all cash balances:
Exchange Rates Used:
Beginning of Period: Rate on the first day of the current period.
End of Period: Rate on the first day of the next period (or the current day's rate for future periods).
Exporting Exchange Rates:
Go to ⚙️ Settings > Export my data > Exchange rates.
You can export exchange rates for all currencies used in your accounts or consolidations.
Customize the exported period (up to 5 years).
💡 Tips
Keep an eye on ignored transactions and accounts: Ignored paid transactions on non-ignored bank accounts are included in cashflow variation, but transactions on ignored bank accounts are not.
Understand your forecasts: Forecasts impact your cash balance differently in past and future periods.
Exchange rates matter: For multi-currency accounts, be aware of the exchange rates applied, as they affect your consolidated cash balance.
Q&A ❓
Why my cash balance doesn't match the sum of inflows and outflows in the CashFlow table?
The cash balance calculation includes all paid transactions on non-ignored bank accounts, including ignored paid transactions, which may not be reflected directly in the CashFlow table. Additionally, exchange rate differences and transactions from ignored accounts can cause discrepancies.
How do ignored bank accounts affect my cash balance?
Ignored bank accounts are excluded from the cash balance computation. Transactions on these accounts do not impact the consolidated cash balance but are included in the CashFlow table. When you view these accounts individually, their cash balances and variations are displayed.
Can I see the exchange rates used in my cash balance calculations?
Yes, you can export the exchange rates used by going to: ⚙️ Settings > Export my data > Exchange rates. This allows you to view all the rates applied to your multi-currency accounts during cash balance computation.