Use this screen to edit existing or create new account types for cash flow accounts. These types will be linked to Statement of Cash Flow rows in the Financial Statement Mappings screen. The cash flows account types determine whether transactions are treated as a source or as a use of cash.
You can also use this screen to set up the source and use descriptions. You will need a unique cash flows account type be for each line on the statement of cash flows.
In this screen, you will assign a calculation method to each account type. The calculation methods are system-defined. For example, you could assign a calculation method of "CHNG" (Change) for the account type "AR" (Accounts Receivable). This method calculates the change that occurred in the account balance from one period to another.
There are system-supplied account type codes to identify sources and uses of cash, but you may need to add your own codes for unique transactions that affect cash. You can use the row containing the "N/A" (Not Applicable) Account Type Code for financial statement lines that do not require analysis for cash flow purposes. This line is not editable.
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Warning: Preparation of the Statement of Cash Flows requires advanced accounting knowledge and should not be attempted by anyone who is unfamiliar with the financial reporting process. |
Review this screen before beginning work on your Statement of Cash Flows. Adjust or add account type codes based on the types of transactions that your company makes.
Before using this screen, you should have a comprehensive plan regarding which cash flow accounts will display on your financial statements.
The system-supplied account type codes cover most cash flow needs. Use the New Record icon on the toolbar to create any additional codes.
You can use these codes to link similar types of financial statement lines for reporting within the Statement of Cash Flows only.
The "N/A" Account Type Code is never included in the calculation of cash flows.
Enter a description of the Account Type Code to identify the cash flow transactions that will be linked to this line.
You can edit this field to better identify your company's cash flow transactions.
Calculation Method Description *
Use Lookup to select the type of calculation that should be performed for the account type. You cannot edit these system-defined codes.
Your selection is critical to the successful completion of your Cash Flows Statement. For accounts such as A/P and A/R, most companies use "Diff in Beg and Ending Balance" (CHNG) as the calculation method and "Sum all account debit amounts" (DBT) for their long-term assets.
You must review these calculation methods carefully for correct preparation of the Statement of Cash Flows.
This displays the calculation method code based on the Calculation Method Description selected for this row. You cannot edit this field.
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Note: The calculation methods listed below are designed to cover as many transaction types as possible. Because they cannot cover all situations, you can make entries in the Edit Preliminary Cash Flows Statement screen (Accounting\Transactions\Cash Flow) as needed. |
The following list some details of common calculation methods:
BAL (Account Balance) - The entire balance in the account is shown on the statement. The amounts are taken from the FS_SUM table. The BEG_AMT and the PD_X_AMTs are summarized up to and including the period entered in the Create Preliminary Cash Flows Statement screen. You can use this type of calculation method for net income adjustments such as depreciation or amortization.
CHNG (Difference in Beginning and Ending Balance) - The activity in the account will summarize and display on the statement. The system calculates this amount by subtracting the sum of the PD_X_AMTs in the FS_SUM table (up to and including the period entered in the Create Preliminary Cash Flows Statement screen) from the BEG_AMT in the FS_SUM table. You can use this calculation method for analysis of current assets and liabilities.
DRCR (Sum Debits/Credits separately) - This method will separately summarize the debits and credits in the GL_POST_SUM table. (The debit and credit amounts appear separately on the Cash Flows Statement.) You can use this method for payments and draws on a line of credit.
SALE (Sale of Assets) - This calculation method is specifically designed for the sale of assets. If you assign this method, the activity type in the Financial Statement Mapping screen (Accounting\Configure\Financial Statements) will become non-editable. This method will first display the entire balance of the account in the operating section. It will then look for amounts in the GL_POST_SUM table that have a "CR" (Cash receipts) designation in the S_JNL_CD column. The system displays these amounts in the investing section as "Proceeds from sale of assets."
CASH (Cash and Cash Equivalents) - Use this calculation method for the Cash and Cash Equivalent lines/accounts. Any cash flows account type that uses "CASH" as its account type will not print in the main section of the report. Lines or accounts that use this calculation method will print at the bottom of the statement as Beginning and Ending Cash and Cash Equivalents. The Create Preliminary Cash Flows Statement screen ignores lines/accounts with this calculation method. The Create Preliminary Cash Flows Statement screen creates the tables necessary to print a cash flows statement. The calculation method description and activity type in the Financial Statement Mappings screen (Accounting\Configure\Financial Statements) are automatically set to "Not Applicable."
CR (Cash Receipts Only) - The system evaluates only those amounts that have a "CR" (Cash Receipts) in the S_JNL_CD column in the GL_POST_SUM table. All GL_POST_SUM_AMTs are totaled up to and including the period entered in the Create Preliminary Cash Flows Statement screen. You would assign this method of calculation to an account that is required to display only the "Cash Receipts" information for inclusion on the Statement of Cash Flows.
DBT (Sum All Debit Amounts) - The system uses the GL_POST_SUM table to calculate these amounts. You can use this code for analysis of fixed asset accounts or any other asset account. A fixed assets type of account can use this calculation method to record all fixed asset purchases.
In order to perform the calculation, all the debits to the accounts should be summed to arrive at the amount to be displayed on the report. Amounts derived from this calculation method will be classified as a use of funds.
CD (Cash Disbursements Only) - This code is designed for cash disbursements. It is used mainly with long-term asset and liability accounts. This calculation method evaluates any debits to the Accounts Payable account with a S_JNL_CD of "APV" or "PO." This calculation method summarizes all the amounts with these S_JNL_CDs. Amounts derived from this calculation method are classified as a use of funds.
CRDT (Sum All Credit Amounts) - This calculation method evaluates only credits to the accounts. The GL_POST_SUM table is used to derive the amounts. All credits to the account are summed to arrive at the amount that displays on the report.
This code tells the system whether the Source or Use description should be used.
Enter "S" when positive amounts are sources of cash. Enter "U" for positive amounts that are uses of cash.
Changing these codes will cause the selected cash flow amounts to "flip" signs (+/-). The "N/A" Account Type Code is never included in the calculation of cash flows.
In order to evaluate the proper setting for this code, you should assess the outcome of the calculation. Using the calculation method assigned to this account type, determine whether a positive result is a source or a use of cash.
Enter up to 30 alphanumeric characters to designate the description to display when the row amount is a source. Use this description when the outcome of the calculation is a source of cash.
Enter up to 30 alphanumeric characters to designate the description to display when the row amount is a use. Use this description when the outcome of the calculation is a use of cash.
Select this checkbox to include the description of the financial statement line along with the source or use description. Select this checkbox only when a description exists in both the Source Description and Use Description fields.
* A red asterisk denotes a required field.
Changes in this screen update the S_CF_ACCT_TYPE (Cash Flow Account Type) table.
