Forecast Confirmation

Events in the world often run ahead of those modeled in a computer system. When events can be anticipated, it makes sense to mechanically generate their models and to publish them for public use.

However, when the computer system does catch up with reality, it is important that reality is accurately modeled.

Therefore:

Provide a mechanism for adjusting and confirming values associated with mechanically published events.

Consider the sequence:

Thursday: we predict an automatic deposit of 187,655.47 for Friday.

Friday: we mechanically post 187,655.47 to the cash account.

Monday: bank records show 187,655.50 was deposited on Friday, we adjust accordingly.

Later: records for the month are closed showing no unusual activity.

What is important here is that the best information was available at every moment even though no one was technically accountable for the posting until after the fact.

Forecast Confirmations look like original entries from the point of view of accounting integrity.

Forecast Confirmations only apply to mechanically generated models. Once confirmed, the model's values become subject to accounting integrity.

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