Consolidated Cash flow statement : particular cases

[Former Member]

Hi BPC experts,

As the title implies, the topic will be about consolidated cash flow statement.

Actually, I have never done a cash flow statement but from the information I have gathered in forums, we create the cash flow members in the Account Dimension, we use the Transaction Type as Flow dimension and finally we use the transformation business rule.

I have 2 questions :

1) One of the clients has not been using the Transaction Type in ECC. This has been the case for 2 years of data. Is there an alternative to create a cash flow statement without using the Flow Dimension ?

2) Another client has several subsidiaries that are not using the SAP system. Once again, the Flow Dimension is compromised. Does anyone have experienced this and found a solution about how to handle this case ?

Thank you for your input in advance !

Dat

[former_member225135 · Accepted solution]

Hi Dat,

It is actually advisable to prepare cash flow with a combination of account dimension and transaction type.

Since in your case, transaction types are not available, you will not be able to get the system generated cash flow and you will require some manual inputs from consolidation team (ex: movement of FA, movement of loan) and you have to adjust this manual adjustment in your final cash flow.

Regards,

Rahul

[Former Member · Accepted solution]

Thank you for your reply Rahul.

[Oleks_Master]

Hi Dat,

Could you clarify if your customers use a Consolidation type of models, including Flow dimension? In this simple case you can use the same Flow member as source and destination.

If they use a Financial type of models without Flow dimension it is more complicated.

Best Regards,

Oleksandr

[Former Member]

Hi Oleksandr,

That's strange I though I answered your post.

Anyway, the customers are using consolidation type of model but if the transaction type is not used neither in ECC or in non-SAP systems, the use of FLOW Dimension is compromised.

[Oleks_Master]

Hi Dat,

If you do not use Flow dimension what is the problem to ignore this dimension in Business Rules?

Probably your question is how to build Cash Flow without Flow dimension functionally? Are you asking about financial advice?

Best regards,

Oleksandr

[Former Member]

Hi Oleksandr,

Yes that is indeed the question ! How to build a cash flow statement without the FLOW dimension ?

I see on the starterkit IFRS that the statement of comprehensive income, the statement of cash flow are all referring to FLOW dimension.

What's bothering me is :

- if an account has an increase, it may go to cash flow A account

- if there is a decrease in the same account, it may go to cash flow B account.

This is how the FLOW is supposed to cover. How to cover these cases without this dimension ?

[Oleks_Master]

Hi Dat,

Flow dimension is used for Balance Sheet accounts, not for P&L accounts.

To build Cash Flow statement you need to calculate differences of BS accounts (Inventories, AP, AR) between current period and previous period.

You can calculate these differences without Flow dimension.

Just ask your financial colleague or customer to provide you a calculation specification.

Best wishes,

Oleksandr