Cash flow calculations

This section provides information on these main topics:

• Overview
• Cash Flow, system settings
• Cash Flow Symbols - Accounts Dimensions
• Cash flow Symbols - Dataviews Dimensions
• Calculations

Overview

Longview dynamically calculates the Cash Flow Statements whenever data is input or loaded into the Longview system. In addition, a link is available within Longview Close to allow the finance team to trigger the cash flow calculation process manually for a specific time period.

Longview calculates the Cash Flow at the lowest entity level and consolidates this information to provide sub consolidated and consolidated reports. Depending on the cash flow account setting, Longview can either calculate Cash Flow on source currencies and translate the Cash Flow accounts using the period average rate or use the translated source value.

Both high level and entity specific cash flow adjustments are made through the Cash Flow Adjustment application.

For more information, see “Configuring the Cash Flow Adjustment Input App” in the Starter Kit Implementation Guide.

Cash Flow system settings

Cash flow has a number of system settings that affect the calculation of cash flow. Cash flow system settings are configured using system attributes.

Cash Flow Symbols - Accounts Dimension

The Cash Flow Accounts hierarchy is made up of Longview foundational symbols as well as customer specific symbols that are added to incorporate detail as required

Some Cash Flow Accounts are created upon system install. When the system is initialized, there are two options for cash flow account setup:

1. SUMMARY - Only creates the summary level cash flow account structure
2. IFRS - Creates the summary cash flow account structure as well as IFRS level detailed substructures.

Customer specific cash flow accounts are added under one of the following three hierarchies:

1. TCF1000 (Cash flows from (used in) operating activities) hierarchy
2. TCF2000 (Cash flows from (used in) investing activities) or
3. TCF3000 (Cash flows from (used in) financing activities)

For more information on managing cash flow accounts, see Cash Flow, Managing cash flow accounts.

Cash Flow Symbols - Dataviews Dimension

Management and Statutory Cash Flow Statements are stored in Longview using the data layering concept implemented through the dataviews dimension. By default, summary cash flow is enabled.

System setup, summary cash flow

Cash flow calculations in the Longview System use summary information in cash flow basis to calculate the indirect cash flow.

Under the summary cash flow calculation, cash flow results are stored as follows:

1. CF_Calc contains the cash flow results for all accounts, except for roll forward accounts.
2. CF_RollForward contains the cash flow results for all roll forward accounts.

To use the summary level, cash flow calculation method, symbol CF_Calc must exist in your system. No additional configuration is required.

System setup, detailed cash flow

Cash flow calculations can be performed across multiple symbols in the Dataviews dimension instead of a single summary level data view symbol.

To enable detailed cash flow, symbol CF_Calc symbol must be removed from your system. If CF_Calc does not exist, each symbol in the Management Reporting data view hierarchy (MGMT) will be calculated individually for cash flow. Roll forward impacts on cash flow will still be stored in CF_RollForward.

Detailed cash flow makes use of symbol attribute AZCFDataViewCFBSource to determine which data view symbols to calculate. Depending on the settings of this attribute, one of two types of calculations will be performed

1. If AZCFDataViewCFBSource is not set, no calculation will be performed. Generally this attribute is not set on any data view symbols used for manual adjustments to the cash flow.
2. If AZCFDataViewCFBSource is set on the target to define the CFB source, CFB adjustment calculations will be performed, using the specified source.
   • In most cases a target symbol in the dataviews dimension is configured to use itself as the source.
   • The impact in the cash flow for each data view symbol is determined by the attribute AZCFImpact. Generally, this is positive, but in some cases this is set to negative.

Note: If symbol CF_Calc exists, attribute AZCFDataViewCFBSource will be ignored.

Note: If detailed Cash Flow from Acquisitions is required, a symbol called CF_Acquisitions will need to be created in the CF_Total Dataview structure. Attribute AZCFDataViewCFBSource for this symbol would need to be set to CFB_Acquisitions. In order for CF_Acquisitions to calculate, Symbol CF_AcqDisp will either need to be deleted, or the value for AZCFDataViewCFBSource on CF_AcqDisp will need to be removed.

The following table illustrates default settings for detailed cash flow:

Calculations

The following are the calculations resulting from Longview’s cash flow processing.