Plain definition
A reforecast is a documented revision of an existing forecast after new evidence makes the prior outlook less credible or less useful for a decision. It is not a quiet replacement of a number. It identifies what changed, when the evidence arrived, and how the change affects the linked revenue, cost, cash, or funding view.
Illustrative example
Monetary examples use Saudi riyals (SAR). The same principles apply in other currencies.
A distributor expected to deliver of goods in September and collect the amount 30 days later. In August, its supplier confirms a four-week production delay. The reforecast moves the September delivery and revenue to October, and the cash collection from October to November. The September operating result may remain unchanged for fixed costs, but the cash forecast now has a lower balance in October than the earlier version.
Management responds before the gap occurs: it asks the supplier to ship part of the order, pursues alternative stock, accelerates another customer collection, or draws on an available facility. The reforecast does not solve the problem; it makes the timing of the choice clear.
A revision can be appropriate without implying that the original forecast was careless. A forecast uses the best evidence available at the time; its history should show whether later evidence was genuinely new or an existing warning was ignored.
Why it matters
If the prior forecast is overwritten without explanation, leaders cannot see whether performance changed, an assumption failed, or a reporting process missed information. That weakens both cash decisions and learning. A clear reforecast preserves the credibility of the current outlook while exposing the source of the movement.
Practical consequence
Keep the approved forecast version, record the trigger and date, state the old and new assumption, and quantify the effect by period. Ask finance to update the cash low point and funding need as well as the income statement. Assign an owner to the corrective action and report whether the action is confirmed or still conditional. Reforecast material changes promptly, but avoid changing immaterial figures every day; excessive noise can hide the movement that actually needs a decision.