Video help

Cash flowCash flow

 

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Cash flow module features          

 

 

 

	Option	Function	Notes
1	Consolidated or Parent	Shows either the consolidated cash flow or the parent	Consolidated: will only be enabled when Show consolidation is turned on in Setup Parent: will only be enabled when Show parent/Show single entity is turned on in Setup
2	Mode	Select either auto or manual mode for number population	Auto: populates data based on the Chart of Accounts values in the report Manual: means all numbers are manually entered. See below for more details
3	Reset descriptions	Resets edited descriptions for a section	Click, then select the sections to be reset and click OK.
4	Reset references	Resets all references in all sections	Click, then acknowledge the warning and click OK.
5	Clear balances	Clears all entered balance	Click, then select the sections to be cleared and click OK
6	Save	Save any changes made	Changes must be manually saved in the cash flow module
7	Export	Export the audit trail to Excel	The 'Audit Trail - Cash flow' file is also available in Outputs Click a current period balance in the Statement or Reconciliation sections to view the on-screen audit trail
8	Editable cells	All grey cells are editable
9	Reference	Each row is allocated to a sub-classification	References in the Position and Income sections can be edited. See Editing references below
10	Warnings	Shows warnings and errors in the cash flow	The text on the button will turn red to alert that warnings exist

 

 

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Sections

The module comprises of the following sections.

 

Menu name	Full section name	Notes
Statement	Statement of cash flows	If not rolled from a prior period report, input the prior period numbers
Borrowings	Restatement / Gross-up of borrowings	Gross-up the borrowings to reflect the correct proceeds and repayments, rather than a net amount
Reconciliation	Cash flow reconciliation	If not rolled from a prior period report, input the prior period numbers
Position	Statement of financial position
Income	Income statement
GST/VAT	GST/VAT adjustment	Gross-up GST/VAT between receipts and payments, as the cash flow should be on a gross basis Only the GST/VAT on sales is entered, as this completes the equation for GST/VAT on payments (which already includes the net movement from the financial position)
FX	Foreign exchange differences allocation	Allocate the foreign currency reserve movement, usually to one or two classifications
Acquisitions	Business combinations acquisitions (cash and non-cash)	If cash, balance to the known cash consideration, if non-cash balance via issues of shares or loans
Disposals	Business combinations disposals (cash and non-cash)	If cash, balance to the known cash proceeds, if non-cash balance via loans or settlement method
Adjustments	Other adjustments (cash and non-cash)	For non-cash or accrued interest, plant acquired through a finance lease, etc. Adjustments are an effective way to adjust numbers
Audit Trail	Cash flow audit trail	Click a current period balance in the Statement or Reconciliation sections to view the on-screen audit trail
Warnings	Warnings

 

 

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Auto mode

Populates data based on the Chart of Accounts values in the report, with the ability the reclassify certain numbers, such as derivatives. Auto is fine in many cases, but it is not suitable for all cash flows and Manual may be the best approach. Note: Auto is not available for Government basis of preparation reports (as government use many spare revenue and expenses codes for their various purposes).

 

For the current period, most numbers are automated except for the following (all grey cells):

• manually split investing and financing from trade for receivables and payables including related entities
• reconciliations - investments, property, plant and equipment and intangibles
• derivative financial instruments
• lease make good as part of property, plant and equipment reconciliation
• held for sale provisions for employee benefits and lease make good
• reconciliations - issued capital, reserves and retained profits
• other expenses - split to various losses and bad debts
• GST/VAT gross-up
• Foreign exchange differences allocation
• Business combinations
• Other adjustments (cash and non-cash) (this is effectively a way of adjusting numbers also)
   

To copy the values from auto to manual mode (this may be a helpful starting point) within the cash flow module:

• Select Mode: Manual
• Click Yes to Copy values

 

 

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Editing references

References in the Position, Income and Adjustments sections can be edited. To edit:

• Click the reference cell to the right of either Operating, Investing or Financing
• In the Position section, a direct and indirect reference is required for Operating. All references are editable except cash and bank overdraft, derivatives offset reserves, income tax, GST/VAT, asset reconciliations and equity movements
• In the Income section, a direct and indirect reference is required for Investing and Financing. All references are editable except asset donations received (Government), asset donations made (Government) and income tax
• In the Adjustments section, there are rows with descriptions and references that are editable
• Click the Save button to save changes
   

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Non-current assets - movements

Movements in non-current assets should be entered against the relevant categories in the Position tab:

• Scroll to the section NA - Other
• The total unreconciled current and prior period balances will be shown in the Other row
• Reconcile the prior period unreconciled balance by typing into the opening balance row(s) of the relevant non-current asset categories above (NA - Other investments (all other types), NA - Property, plant and equipment (all), NA - Right-of-use, NA - Intangibles)
• Reconcile the current period unreconciled balance by typing into the movements rows of the relevant non-current asset categories above (NA - Other investments (all other types), NA - Property, plant and equipment (all), NA - Right-of-use, NA - Intangibles)

 

 

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Natural sign

The Cash flow module has been designed using natural sign, thus you must enter the components as follows:

• Assets: Positive (Debit), with a few exceptions. For items like provision for impairment, enter these as negative. For asset reconciliations like property, plant and equipment, these are mixed signs, such as additions are positive and depreciation is negative.
• Liabilities: Negative (Credit)
• Equity: Negative (Credit), with a few exceptions such as dividends paid are positive.
• Revenue: Negative (Credit)
• Expenses: Positive (Debit)