Infor LN & Baan Tip: Cash Flow Functionality and Setup
A cash flow statement provides a historical view of the movement of cash within a company. This statement offers an overview of both the origins and destinations of cash, aiding management in evaluating the company's ability to fulfill short-term financial obligations. To differentiate between various sources and uses of cash, reason codes can be utilized. When interacting with cash transactions in relevant sessions, users have the option to input or review the corresponding cash flow reason. The cash flow statement organizes cash transactions based on these reasons. LN software system maintains year-specific opening balances for cash flow transactions. Should the need arise, users can manually input opening balances in the Opening Balance Cash Flow (tfgld2118m000) session.
To set up the cash flow statement, use the following sequence of sessions:
- Group Company Parameters (tfgld0101s000): If you want to generate cash flow statements in any of the financial companies of the group, you must select the Cash Flow Statement check box.
- Reasons (tcmcs0105m000): Define reason codes for the sources and uses for cash that you want to distinguish. The Reason Type must be Cash Flow.
- Purchase Types (tcmcs2101m000): For the purchase types related to cash transactions, select the default cash flow reasons.
- Sales Types (tcmcs2102m000): For the sales types related to cash transactions, select the default cash flow reasons.
- Chart of Accounts (tfgld0108s000): For ledger accounts used for cash transactions, select the default cash flow reason in the Cash Flow Reason field. The ledger accounts must have level zero and must not be a text account, an intercompany account, or an integration account.
To enter and view cash flow transactions: Transactions that must be included in the cash flow statement must have a cash flow reason linked to them. For most transactions, ERP LN derives the default cash flow reason from the sales type, the purchase type, or the ledger account.
If you manually enter cash transactions, you can enter a cash flow reason. You can view cash flow transactions in the following sessions:
- Cash Flow History (tfgld2519m000): This session displays, for one cash flow reason, the opening balance, the closing balance, and the movement during one financial period.
- Cash Flow Transactions (tfgld1523m000): This session lists the transactions by cash flow reason.
In both sessions, on the Specific menu you can click Opening Balance to start the Opening Balance Cash Flow (tfgld2118m000) session. Use this session to view the calculated opening balances for a cash flow reason or to enter manually an opening balance, if necessary.
To print the cash flow statement: Use the Print Cash Flow Transactions (tfgld1419m000) to print the cash flow statement. You can print the report for one financial company and one fiscal year, and for a range of financial periods and cash transaction reasons.
To print the cash flow statement, use the following sequence of sessions:
- Cash Flow History (tfgld2519m000): On the Specific menu, click Cash Flow Transactions. The Cash Flow Transactions (tfgld1523m000) session starts.
- Cash Flow Transactions (tfgld1523m000): Click Print. The Print Cash Flow Transactions (tfgld1419m000) session starts.
- Print Cash Flow Transactions (tfgld1419m000): To print the cash flow statement, in the Report field, select Cash Flow Reason Transactions.
Other related KBs which would be helpful in Cash Flow process queries:
1998168 How to link child Cash Flow Reason Group to Cash Flow Reason