FIN.2:4.1 - Build the account around the payer and the payment

A liquidity forecast answers whether a particular payer can make particular payments when they become due. Start with the bank and settlement accounts that payer can use. An amount in the accounting cash balance can be pending clearance, pledged, reserved by contract or held by a different company. Record the condition and earliest usable date before treating it as a source. Conversely, an undrawn facility is a possible financing action, not opening cash. Adding its limit to the bank balance and then also adding a draw counts the same support twice.

Use the currency in which the obligation must be settled. If another currency supplies the money, include the conversion transaction, obtainable rate or rate scenario, settlement date and any margin or transfer requirement. A common reporting currency helps compare positions but does not perform that conversion. For a group, first establish the separate payers’ accounts and the actual transfers that connect them. A consolidated surplus can coexist with a subsidiary’s inability to pay. FDM.1–2 supplies the positions, entity boundary and available support; FIN.2 turns those results into dated funding consequences.

The starting cash is an observed or reconciled usable balance at a stated instant. Construct receipts from invoices, customer terms, expected performance and asset realizations; construct payments from the operating plan, supplier terms, payroll, tax, investment and existing finance. FIN.4 and MA.4 supply the connection to the forecast and accounting views. A sale is not yet a receipt, a purchase is not necessarily paid on delivery, and depreciation is not a payment. When a forecast already starts from operating cash after tax or interest, do not subtract those same payments again.

Separate obligations, expected performance and selectable actions. A receivable due on Tuesday establishes a claim; its collection forecast requires evidence about payment. A proposed loan becomes cash only after its conditions, notice and settlement are satisfied. FDM.3 develops this event logic when the arrangement is unclear. A supplied schedule with these distinctions already resolved can be used directly.