Target Balance Automation with forecasted shortfall

Overview

Beta. This feature is currently in Beta.

Target Balance Automation with forecasted shortfall uses Forecast to look ahead at upcoming cash needs, top up your Ramp Checking Account before a projected shortfall, and optionally sweep excess funds back to an Investment Account.

Use the forecasted shortfall trigger when you want Target Balance Automation to consider upcoming payments and Forecast line items instead of only reacting when Checking falls below a fixed minimum balance. This setup was previously called Cash Manager. For the broader automation options, see Ramp Banking automations.

How forecasted shortfall works

Target Balance Automation starts with a target balance for your Ramp Checking Account. When forecasted shortfall is selected as the trigger, Ramp compares that target balance against your projected balance and scheduled cash activity in Forecast.

If Forecast shows your Checking balance may fall below target, Target Balance Automation can schedule a top-up from the selected funding source. If your funding source is an Investment Account and sweep is enabled, Target Balance Automation can also move excess funds from Checking back to the Investment Account when projected balances are above target.

Choose funding and sweep options

Target Balance Automation with forecasted shortfall supports different options depending on where funds come from:

Sweep is only available when the funding source is an Investment Account. Turning sweep off only stops excess funds from moving back to the Investment Account; it does not stop Target Balance Automation from topping up Checking. To stop all automated transfers for this setup, delete or disable the Target Balance Automation.

Understand Forecast inputs

Forecast is available from the Forecast tab, even if Target Balance Automation is not enabled. Target Balance Automation with forecasted shortfall uses Forecast to understand upcoming cash needs for your Ramp Checking Account.

Forecast inputs can include scheduled bills, approved or ready-for-release bills depending on your Forecast input settings, pending approval bills depending on preferences, card statement payments, reimbursements, Ramp service fees, custom Forecast line items, and scheduled deposits or transfers visible to Forecast.

Forecast does not automatically know every off-Ramp obligation. Add custom Forecast line items for expected off-Ramp expenses or revenue, such as payroll, debt payments, or large customer deposits, so projected balances reflect your broader cash picture.

Understand bill dates in Forecast

Forecast uses the best available bill date to project when funds are needed. The date waterfall is scheduled payment date, bill due date, invoice date, then the current date if the other dates are unavailable.

This date affects when Target Balance Automation expects cash to leave Checking. If a bill date or payment status changes, Ramp may change, cancel, or recreate scheduled automation actions.

Plan around settlement timing

Target Balance Automation with forecasted shortfall needs enough lead time for funds to settle before a payment or projected shortfall. Actual timing varies by cutoff times, weekends, bank holidays, trading holidays, and available balance.

General lead-time guidance:

• External bank account ACH: about 5 business days.
• Self-Directed Investment Account: about 3 business days.
• Managed Portfolio full withdrawal: about 3 business days.
• Managed Portfolio short-term sleeve or Reserve strategy, when available: about 1 business day.

Target Balance Automation cannot always cover payments due inside the funding source settlement window. For urgent payments, manually fund Checking with a faster method such as wire or RTP where available, or change the payment source.

Review scheduled Target Balance actions

Use the Forecast tab, transfer history, and scheduled automation details to review why Target Balance Automation moved funds or changed a scheduled action. Ramp can update or cancel scheduled actions after balance changes, Forecast refreshes, payment status changes, custom Forecast line item updates, target balance edits, existing in-flight transfers, or insufficient source funds.

If your primary funding source is an Investment Account and the available source funds are insufficient, Target Balance Automation can use the backup external bank account if one is configured. If no backup source is configured, you may need to manually fund Checking to avoid a missed or delayed payment.

Frequently asked questions

Do I need an Investment Account to use Target Balance Automation with forecasted shortfall?

No. You can use an external bank account to top up Checking. You need an Investment Account if you want Target Balance Automation to sweep excess funds back into an Investment Account or use a backup funding source.

Why did money move when sweep is off?

Sweep controls only excess funds moving from Checking back to an Investment Account. If Target Balance Automation is still enabled, it can continue to top up Checking when Forecast shows a projected shortfall.

How can I tell whether a transfer was automation-triggered?

Review transfer history, Forecast, and scheduled automation details. A transfer's initiator alone may not explain the full reason funds moved because Target Balance Automation considers Forecast, scheduled actions, in-flight transfers, and source availability together.

What happens if a bill is due too soon?

Target Balance Automation may not be able to move funds in time if the payment is due inside the funding source settlement window. Manually fund Checking with a faster method such as wire or RTP where available, or change the payment source.

Do external deposits and withdrawals show up in Forecast automatically?

Only scheduled deposits and transfers visible to Forecast are included automatically. Add custom Forecast line items for known off-Ramp cash activity that Forecast does not already show.

What happens if the funding source has insufficient funds?

If you use an Investment Account with a backup external bank account, Target Balance Automation can use the backup source. If no backup source is configured, manually fund Checking or update the payment source so upcoming payments are covered.