What is predictive forecasting in SAP FS-LMS - Liquidity Management Suite?

SAP Term: predictive forecasting

• Component: FS-LMS

• Component Name: Liquidity Management Suite

• Description: Part of the core Cash Flow Management, which provides functionality to support the proactive anticipation of cash flows.

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• Key Concepts: 
  Predictive forecasting is a feature of the FS-LMS Liquidity Management Suite (LMS) that enables users to predict future cash flows and liquidity positions. It uses advanced analytics and machine learning algorithms to analyze historical data and generate forecasts for future cash flows. The forecasts are based on a variety of factors, including market conditions, customer behavior, and other external factors. 
  
  How to use it: 
  To use predictive forecasting in LMS, users must first set up the forecasting parameters. This includes selecting the time period for the forecast, the type of forecast (e.g., short-term or long-term), and the data sources to be used. Once these parameters are set, users can generate a forecast by running the predictive forecasting algorithm. The algorithm will then generate a forecast based on the parameters set by the user. 
  
  Tips & Tricks: 
  When setting up the forecasting parameters, it is important to select a time period that is long enough to capture all relevant data points. Additionally, it is important to select data sources that are reliable and up-to-date in order to ensure accurate forecasts. Finally, it is important to regularly review and update the forecasting parameters in order to ensure that the forecasts remain accurate over time. 
  
  Related Information: 
  The FS-LMS Liquidity Management Suite also includes features such as cash flow monitoring, liquidity planning, and liquidity risk management. Additionally, SAP offers a range of other solutions for financial planning and analysis, including SAP Business Planning and Consolidation (BPC) and SAP Analytics Cloud (SAC).