BPM Standard Reports Guide

Cash Flow Statement Indirect Method

This section describes the Cash Flow Statement Indirect Method report.

The Cash Flow Statement Indirect Method report is a financial report used in business processes for performance management and outlines how cash flows in and out of a business. This report displays financial figures in a certain reporting structure. It outlines the standard Operating Activities, Investing Activities, and Financing Activities sections.

In the report, figures are calculated depending on whether it is a P/L (Profit/Loss) account or a Balance sheet:

  • For P/L accounts, the movement on the account for the period selected is displayed. For example, if an invoice and corresponding payment were registered in the period, the amount excluding tax would typically appear in the group Net Profit, which groups P/L accounts. The amount of the invoice is then included in what is displayed for Net Profit in the cashflow statement, with the corresponding balance sheet account for AR showing up in the Operating Activities in the changes in Accounts Receivables section.
  • For Balance sheet, the closing balance on the account is subtracted from the corresponding closing balance on the account from the previous year. For example, if a cash account closed at $1000 at the end of the selected period last year, and it closed at $2500 at the end of the selected period for the current year, the current period should display $1500; thereby, indicating a cash-inflow.

Reporting Description

Reporting Structure

The structure is added as an import file. You can easily name the grouping levels. However, this structure for the Cash Flow is mandatory. We recommend that you follow the specific Reporting Structure Setup instructions below. For more information, refer to Deltek Maconomy BPM Admin Guide.

This basic structure is as follows

  1. Net Cashflow (top level)
    1. Operating Activities (sub-level)
    2. Investing Activities (sub-level)
    3. Financing Activities (sub-level)
  2. Cash Reconciliation (top level)

As shown here, you must have two top-level groupings: Net Cashflow and Cash Reconciliation. Additionally, you must use three sub-level groupings within Net Cashflow: Operating Activities, Investing Activities, and Financing Activities.

Additional sub-levels within these groupings can be configured anyway you wish to suit your reporting and business purposes.

Invert Sign Option

You can apply this bookkeeping sign by creating a reporting structure in the Workspace Client and selecting or deselecting the checkbox in Invert Sign column. By doing this, you can then tell which accounts need to have the natural sign and which do not.

The report displays the amount sign, depending on how you use the Invert Sign functionality of the reporting structure. The Invert Sign check box controls the sign of the amounts displayed.

Note: When you select the Invert Sign check box, the inverted amounts are used in the computation instead of the original amount.

Additionally, the functionality enables you to determine whether you have a Cash inflow or a Cash outflow. The report should have the same amounts on Cash Closing Balance and Cash Reconciliation rows. If this is not the result, you may need to revisit the reporting structure for any missing or excess accounts, and check if you applied the invert sign properly.

Report Fields and Descriptions

The report provides the following totals:

  • Net Cashflow: The sum of the top-level totals (usually Operating Activities, Investing Activities, and Financing Activities, but can be changed.)
  • Cash Reconciliation: The closing balance sum of the cash grouping level based from the reporting structure.
  • Cash Opening Balance: The closing balance of the previous year.
  • Cash Closing Balance: The opening balance + net cash flow.
Top-Level Header Header Title Description
Account groups (no header is displayed) This column shows the names of the reporting structure groups.
Note: The names "Cash Opening Balance" and "Cash Closing Balance" are not from the reporting structure. These headers are hardcoded to the mentioned names.
Period chosen by user in selection criteria Fiscal year number Cashflow figures.

The values are different for the different kinds of lines: For balance accounts, the closing balance of the column's year minus the closing balance of the year before

  • For P/L accounts, the movement within the period for the column's year.
  • Net Cashflow line: Sum of top-level totals.
    Note: Not what is displayed because that could be wrong when using natural sign, so it is really the summation over the non-grouping lines, for example, a normal total.
  • Cash Reconciliation line: Sum of the closing balance in the Cash Grouping level in the reporting structure.
  • Cash Opening Balance: The closing balance as of previous year.
  • Cash Closing Balance: Cash Opening Balance + Net Cashflow.