Configuring Cash Flow

  1. Ensure that the Cash Flow Group Accounts business object has been configured.
  2. Select Modules > Consolidation > Cash Flow and click Configure.
  3. Specify this information:
    Currency Differences Cash Flow
    Select the cash flow group account for posting the total system generated currency translation differences. The differences result from the comparison of local currency values with the retranslation of values into the group currency. The retranslation is made on the basis of the balance sheet exchange rate. The comparison happens after the local cash flow is reconciled and calculated into the group currency. You can select any of the cash flow group accounts. We recommend that you set up this account with the name Currency Translation Differences. This account is also used in the Budgeting & Planning module.
    Net increase/decrease in Cash and Cash Equivalents
    Select the cash flow group account for the total increase or decrease in cash and cash equivalents. You can select any of the cash flow group accounts. We recommend that you set up this account with the name Net increase/decrease in Cash and Cash Equivalents. In the hierarchy, this account is usually directly under the top account, which represents the cash result at the end of a period. The net increase or decrease in cash and cash equivalents account is also used in the Budgeting & Planning module.
    Opening Balance Cash Flow
    Select the cash flow group account to which the opening balance of cash and cash equivalents is carried forward. You can select any of the cash flow group accounts. We recommend that you set up this account with the name Cash at the Beginning of the period. This account is usually at the same hierarchy level as the account that represents the net increase or decrease in cash and cash equivalents. Cash flow is based on the YTD data. Therefore, the amount in the Cash at the Beginning of the period account is always the same for every YTD period within the fiscal year. The opening balance cash flow account is also used in the Budgeting & Planning module.
  4. Click Save.