A balance gap arises when you have gaps in your cash flows between the current system date and your defined until date. This gap can occur under the following circumstances:
You begin with a negative balance and need to borrow money. The balance gap occurs because you don't know when you will receive sufficient funds to pay off part or all of the loan.
You have a positive balance, and you invest the money. The balance gap occurs because you don't know when you will need part or all of that money to cover future obligations.
Knowing when a balance gap occurs is crucial to effectively handle the funds you loaned or invested. You can use the View Balance Gapping window/page, to manage your balance gaps.
To reduce your balance gapping results, enter amount ranges that meet your cashflow requirements. The balance gapping results incorporate real time data from Oracle Treasury.
In the Cash Position Results page, choose the View Balance Gapping button. The View Balance Gapping page appears.
Select a currency for which you want to view the balance gaps.
Select a previously run cash forecast in the Forecast Name field. The forecast selected here will be used to populate the net cash flow data from Oracle Payables, Oracle Receivables and Oracle Payroll. Cashflows from Oracle Treasury will be obtained directly. This field is optional for Oracle Treasury users (if you only want to include cashflows from Oracle Treasury), but it is required for non-Treasury Users.
In the Start Date and End Date fields, enter the dates between which you want to view your balance gaps.
(Optional) Select a legal entity for which you want to view your balance gaps. To view balance gaps for all legal entities, leave this field blank.
(Optional) Select a bank account for which you want to view your balance gaps. To view balance gaps for all bank accounts, leave this field blank.
In the Balance From and To fields, enter an amount range for the balance gap that you want to view. To view all balance gaps, leave these fields blank.
Suggestion: If you borrowed money to cover a negative balance, enter a number equal to or greater than zero in the Balances From field. By entering a larger number, you accept a larger balance gap. If you had a positive balance and invested the money, enter a number equal to or less than zero in the To field. By entering a larger negative number, you accept a larger balance gap.
Choose the Refresh Gapping Data button to generate balance gapping.
You can view the details of the gapping results in a Discoverer Workbook by selecting View in Discoverer Workbook. See: Viewing Cash Positions in Discoverer
If you are a Oracle Treasury User, the cash position results also include an Available Liquidity section that displays your current position by currency in Short Term Money, Discounted Securities and Fixed Income Securities.
You can click on the amounts displayed for each deal type to drill down to the details of the underlying deals.
In the Short Term Money Details page, you can view the details of the short term money deals and access the Short Term Money window in Oracle Treasury by clicking on the Manage Short Term Money button. In the Fixed Income Securities Details page, you can view the details of the fixed income securities deals and access the Fixed Income Securities window or the Fixed Income Securities for Resale/Repurchase window in Oracle Treasury by clicking on the Create Fixed Income Securities Deal or Resell Fixed Income Securities Deal button respectively. In the Discounted Securities Details page, you can view the details of the discounted securities deals and access the Discounted Securities window or the Discounted Securities Resales window in Oracle Treasury by clicking on the Create Discounted Securities Deal or Resell Discounted Securities Deal button respectively. See: Deal Types and Product Types