Cash flow statements
A cash flow statement provides information about the history of the cash flow. The statement provides an overview of the sources and uses for cash, and is used to assess the ability of the company to meet its short-term obligations. In some countries, a cash flow statement must be submitted periodically to authorities.
You use reason codes to distinguish the various sources and uses for cash. In the sessions in which you maintain or view cash transactions, you can enter or view the cash flow reason. On the cash flow statement, the cash flow transactions are grouped by cash flow reason.
LN maintains the opening balances for cash flow transactions per year. In the Opening Balance Cash Flow (tfgld2118m000) session, you can enter an opening balance manually, if necessary.
Cash flow statement
To define a cash flow statement, you group cash flow reasons into cash flow reason groups. Next, you group the cash flow reason groups into parent cash flow reason groups. A cash flow statement can contain one or several parent cash flow reason groups.
On the cash flow statement, LN prints the total amounts of each parent cash flow reason group and the subtotals for each child cash flow reason group.
Example
| Parent Group | Child Group | Cash Flow Reason | Amount | Total amounts |
|---|---|---|---|---|
| Parent Group 1 | ||||
| Child Group 101 | Reason A | nnn | ||
| Reason B | nnn | |||
| Subtotal Child Group 101 | nnn | |||
| Child Group 201 | Reason F | nnn | ||
| Reason G | nn | |||
| Reason H | nn | |||
| Subtotal Child Group 201 | nnn | |||
| Total Parent Group 1 | NNN | |||
| Parent Group 2 | ||||
| Child Group 102 | Reason K | nnn | ||
| Subtotal Child Group 102 | nnn | |||
| Child Group 202 | Reason P | nnn | ||
| Reason Q | nn | |||
| Subtotal Child Group 202 | nnn | |||
| Total Parent Group 2 | NNN |
Multicompany aspects
In a multifinancial company structure, all companies of the financial company group must share the tables that are related to cash flow reasons and cash flow statements.
Cash flow history
To view cash flow history and underlying transactions, in the Financial Statements module, you can create financial statements in which cash flow reasons are linked to special cash flow statement accounts.