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Cash Flow Calculations

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 Close and Plan Data View Input Examples.

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 attribute, listed below:

Attribute

Default

Use

ASCFAccountsCash

TA2070

Configure the source accounts for beginning cash. The default source account is TA2070.

ASCFAccountsSource

 

Configure additional source hierarchies for cash flow calculations. By default cash flow sources are limited to the trial balance (TB) and roll forward hierarchies (ACCOUNTS_RF).

Note: If an alternate hierarchy contains accounts that are not part of the trial balance, you will need to configure additional event rules to trigger calculations for data changes in this hierarchy.

ASCFActivity

TCF4000

Configure the account for cash flow activity. The default cash flow activity account is TCF4000.

ASCFBeginning

CF6000

Configure the cash flow beginning cash account. The default beginning cash account is CF6000.

ASCFD<?>Source

_Total

Configure the source for cash flow calculations in a custom dimension. The source for cash flow should be the symbol at which the trial balance is in balance.

For example, if your system has a cost centers dimension, the trial balance is normally in balance at the COSTCENTERS_Total symbol.

This setting is shared by other calculations in Longview.

For further information, see System Setup, Source and Target Symbols.

ASCFD<?>Target

_Total

Configure the target for cash flow calculations in a custom dimension. Normally a summary level is used for the target.

For example, if your system has a cost centers dimension, the target is usually set to a default cost center symbol, normally where the balance sheet is entered in Longview.

This setting is shared by other calculations in Longview.

For further information, see System Setup, Source and Target Symbols.

ASCFEnding

CF7000

Configure the cash flow ending cash account. The default ending cash account is CF7000.

ASCFFinancing

TCF3000

Configure the cash flow from financing activities account. The default cash flow from financing activities account is TCF3000.

ASCFFX

CF4010

Configure the cash flow effect of exchange rate changes account. The cash flow effect of exchange rate changes account is CF4010.

ASCFInvesting

TCF2000

Configure the cash flow from investing activities account. The default cash flow from investing activities account is TCF2000.

ASCFOperating

TCF1000

Configure the cash flow from operating activities account. The default cash flow from operating activities account is TCF1000.

ASCFRoot

ACCOUNTS_CF

Configure the cash flow root account. The default cash flow root account is ACCOUNTS_CF.

ASCFStatement

CF

Configure the cash flow statement account. The default cash flow statement account is CF.

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:

  • SUMMARY - Only creates the summary level cash flow account structure
  • 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:

  • TCF1000 (Cash flows from (used in) operating activities) hierarchy
  • TCF2000 (Cash flows from (used in) investing activities) or
  • TCF3000 (Cash flows from (used in) financing activities)

For more information on managing cash flow accounts, see 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:

  • CF_Calc contains the cash flow results for all accounts, except for roll forward accounts.
  • 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:

  • 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.

  • 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.
    • 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:

Data View Symbol

AZCFDataviewCFBSource

AZCFImpact

GL

GL

+

NOCORP_Adj

NOCORP_Adj

+

NOCORP_PostClose

NOCORP_PostClose

+

CORP_Adj

CORP_Adj

+

CORP_PostClose

CORP_PostClose

+

CONS_Adj

CONS_Adj

+

CONS_IC

CONS_IC

+

CONS_NCI

CONS_NCI

+

CONS_EQP

CONS_EQP

+

CF_RollForward

 

 

CF_AcqDisp

CFB_AcqDisp

+

CF_ReOrg_Adj

CFB_ReOrg_Adj

-

CF_Reclass

 

 

CF_NonCash

 

 

REORG_Adj

REORG_Adj

+

Calculations

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

Longview’s cash flow processing calculations Description

Attribute value in ASCFRoot. Default is ACCOUNTS_CF.

Root of the cash flow hierarchy used by Solutions Framework tools. This account should not be renamed.

CF6000P

Beginning cash balance for the period calculated by cash flow calculations. The source is the cash balance from the prior period, as defined by the cash accounts listed in ASCFAccountsCash. For the first period of the year the source is the open period.

CF6000Q

Beginning cash balance for the quarter calculated by cash flow calculations. The source is the cash balance from the prior quarter, or the open period for the first quarter, as defined by the cash accounts listed in ASCFAccountsCash.

CF6000Yr

Beginning cash balance for the year calculated by cash flow calculations. The source is the cash balance in the open period, as defined by the cash accounts listed in ASCFAccountsCash.

CF6000YTD

Beginning cash for the year to date calculated by cash flow calculations. The source is the cash balance in the open period, as defined by the cash accounts listed in ASCFAccountsCash.

Attribute value in ASCFStatement. Default is CF.

Root of the cash flow reporting hierarchy used by Solutions Framework tools. This account should not be renamed.

CF1010

Cash flow target of NI account, pre-configured.

Attribute value in ASCFFX. Default is CF4010.

Calculated by cash flow calculations as the difference between the actual translated amount and the amount if translated using the period end rate. This account should not be renamed nor removed.

CF2020

Used to record cash impact of acquisitions.

CF_AcqCash

Calculated by cash flow calculations to record the cash balance in an acquisition.

Attribute value in ASCFBeginning. Default is CF6000.

Used to report beginning cash balance and calculated via a query rule. The source is the related beginning balance account described above. This account should no be renamed nor removed.

Attribute value in ASCFEnding. Default is CF7000.

Used to report ending cash balance. Calculated as the beginning balance plus the change in cash. This account should not be renamed nor removed.

CF_Fin_DiscOps

Used for automated adjustments to the financing activities section of the cash flow for discontinued operations.

CF_Inv_DiscOps

Used for automated adjustments to the investing activities section of the cash flow for discontinued operations.

CF_Op_DiscOps

Used for automated adjustments to the operations section of the cash flow for discontinued operations.

All other customer activity accounts: Impact +

Current Period Account Balance - Prior Period Account Balance

APTRADE (Current Month YTD) – APTRADE (Prior Month YTD).

If account is a Roll Forward account, calculation is based on the intersection of roll forward account and roll forward detail from Dataviews dimension.

For example: RF_Disposal for RF_Building

All other customer activity accounts: Impact -

Prior Period Account Balance – Current Period Account Balance

ARTradeGross (Prior Month YTD) – ARTradeGross (Current Month YTD).

If account is a Roll Forward account, calculation is based on the intersection of roll forward account and roll forward detail from Dataviews dimension.

For example: RF_Add for RF_Building

Published:

Cash Flow Calculations

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 Close and Plan Data View Input Examples.

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 attribute, listed below:

Attribute

Default

Use

ASCFAccountsCash

TA2070

Configure the source accounts for beginning cash. The default source account is TA2070.

ASCFAccountsSource

 

Configure additional source hierarchies for cash flow calculations. By default cash flow sources are limited to the trial balance (TB) and roll forward hierarchies (ACCOUNTS_RF).

Note: If an alternate hierarchy contains accounts that are not part of the trial balance, you will need to configure additional event rules to trigger calculations for data changes in this hierarchy.

ASCFActivity

TCF4000

Configure the account for cash flow activity. The default cash flow activity account is TCF4000.

ASCFBeginning

CF6000

Configure the cash flow beginning cash account. The default beginning cash account is CF6000.

ASCFD<?>Source

_Total

Configure the source for cash flow calculations in a custom dimension. The source for cash flow should be the symbol at which the trial balance is in balance.

For example, if your system has a cost centers dimension, the trial balance is normally in balance at the COSTCENTERS_Total symbol.

This setting is shared by other calculations in Longview.

For further information, see System Setup, Source and Target Symbols.

ASCFD<?>Target

_Total

Configure the target for cash flow calculations in a custom dimension. Normally a summary level is used for the target.

For example, if your system has a cost centers dimension, the target is usually set to a default cost center symbol, normally where the balance sheet is entered in Longview.

This setting is shared by other calculations in Longview.

For further information, see System Setup, Source and Target Symbols.

ASCFEnding

CF7000

Configure the cash flow ending cash account. The default ending cash account is CF7000.

ASCFFinancing

TCF3000

Configure the cash flow from financing activities account. The default cash flow from financing activities account is TCF3000.

ASCFFX

CF4010

Configure the cash flow effect of exchange rate changes account. The cash flow effect of exchange rate changes account is CF4010.

ASCFInvesting

TCF2000

Configure the cash flow from investing activities account. The default cash flow from investing activities account is TCF2000.

ASCFOperating

TCF1000

Configure the cash flow from operating activities account. The default cash flow from operating activities account is TCF1000.

ASCFRoot

ACCOUNTS_CF

Configure the cash flow root account. The default cash flow root account is ACCOUNTS_CF.

ASCFStatement

CF

Configure the cash flow statement account. The default cash flow statement account is CF.

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:

  • SUMMARY - Only creates the summary level cash flow account structure
  • 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:

  • TCF1000 (Cash flows from (used in) operating activities) hierarchy
  • TCF2000 (Cash flows from (used in) investing activities) or
  • TCF3000 (Cash flows from (used in) financing activities)

For more information on managing cash flow accounts, see 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:

  • CF_Calc contains the cash flow results for all accounts, except for roll forward accounts.
  • 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:

  • 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.

  • 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.
    • 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:

Data View Symbol

AZCFDataviewCFBSource

AZCFImpact

GL

GL

+

NOCORP_Adj

NOCORP_Adj

+

NOCORP_PostClose

NOCORP_PostClose

+

CORP_Adj

CORP_Adj

+

CORP_PostClose

CORP_PostClose

+

CONS_Adj

CONS_Adj

+

CONS_IC

CONS_IC

+

CONS_NCI

CONS_NCI

+

CONS_EQP

CONS_EQP

+

CF_RollForward

 

 

CF_AcqDisp

CFB_AcqDisp

+

CF_ReOrg_Adj

CFB_ReOrg_Adj

-

CF_Reclass

 

 

CF_NonCash

 

 

REORG_Adj

REORG_Adj

+

Calculations

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

Longview’s cash flow processing calculations Description

Attribute value in ASCFRoot. Default is ACCOUNTS_CF.

Root of the cash flow hierarchy used by Solutions Framework tools. This account should not be renamed.

CF6000P

Beginning cash balance for the period calculated by cash flow calculations. The source is the cash balance from the prior period, as defined by the cash accounts listed in ASCFAccountsCash. For the first period of the year the source is the open period.

CF6000Q

Beginning cash balance for the quarter calculated by cash flow calculations. The source is the cash balance from the prior quarter, or the open period for the first quarter, as defined by the cash accounts listed in ASCFAccountsCash.

CF6000Yr

Beginning cash balance for the year calculated by cash flow calculations. The source is the cash balance in the open period, as defined by the cash accounts listed in ASCFAccountsCash.

CF6000YTD

Beginning cash for the year to date calculated by cash flow calculations. The source is the cash balance in the open period, as defined by the cash accounts listed in ASCFAccountsCash.

Attribute value in ASCFStatement. Default is CF.

Root of the cash flow reporting hierarchy used by Solutions Framework tools. This account should not be renamed.

CF1010

Cash flow target of NI account, pre-configured.

Attribute value in ASCFFX. Default is CF4010.

Calculated by cash flow calculations as the difference between the actual translated amount and the amount if translated using the period end rate. This account should not be renamed nor removed.

CF2020

Used to record cash impact of acquisitions.

CF_AcqCash

Calculated by cash flow calculations to record the cash balance in an acquisition.

Attribute value in ASCFBeginning. Default is CF6000.

Used to report beginning cash balance and calculated via a query rule. The source is the related beginning balance account described above. This account should no be renamed nor removed.

Attribute value in ASCFEnding. Default is CF7000.

Used to report ending cash balance. Calculated as the beginning balance plus the change in cash. This account should not be renamed nor removed.

CF_Fin_DiscOps

Used for automated adjustments to the financing activities section of the cash flow for discontinued operations.

CF_Inv_DiscOps

Used for automated adjustments to the investing activities section of the cash flow for discontinued operations.

CF_Op_DiscOps

Used for automated adjustments to the operations section of the cash flow for discontinued operations.

All other customer activity accounts: Impact +

Current Period Account Balance - Prior Period Account Balance

APTRADE (Current Month YTD) – APTRADE (Prior Month YTD).

If account is a Roll Forward account, calculation is based on the intersection of roll forward account and roll forward detail from Dataviews dimension.

For example: RF_Disposal for RF_Building

All other customer activity accounts: Impact -

Prior Period Account Balance – Current Period Account Balance

ARTradeGross (Prior Month YTD) – ARTradeGross (Current Month YTD).

If account is a Roll Forward account, calculation is based on the intersection of roll forward account and roll forward detail from Dataviews dimension.

For example: RF_Add for RF_Building

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