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Oracle Financials for Asia/Pacific User Guide
Release 12.1
Part Number E13419-03
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China

Overview

The Solution for China Accounting Software Data Interface Standard, referred to as Solution in this chapter, allows you to export data from Oracle E-Business Suite to meet the requirements of the China National Auditing Office Standard. The solution enhances the capabilities of Oracle E-Business Suite, for China, by generating files with the requested formats. The data exported from Oracle E-Business Suite is based on legal entity and not ledgers. You can define the reports by using the existing Financial Statement Generator and XML Publisher. You can also generate the reports with different outputs by modifying the XML Publisher templates. The Solution provides the cash flow statement function, which covers cash related flows of general ledger and subledgers.

This section introduces you to financial data export and the cash flow statement.

Financial Data Export

Financial data export includes data export and financial report export. You can use Financial Statement Generator in E-Business Suite to define and design reports and statements, and export financial data.

Cash Flow Statement

The cash flow statement reflects the sources and uses of money (in hard cash) in an accounting period for an enterprise. The cash flow statement analyzes the financial status of an enterprise in cash or the corresponding equivalent as follows:

The cash flow statement contains two parts: a main statement and a supplementary statement respectively.

The Solution allows you to define and export the Cash Flow Statement from Oracle E-Business Suite. It covers the related cash flow businesses, including general ledger and subledgers.

Implementation

Setting up the Solution for China Accounting Software Data Interface Standard

This section provides detailed instructions on how to set up the solution. You can define the categories and output formats for the financial data and cash flow items to suit your enterprise's needs.

Related Product Setup Steps

The following setup steps must be completed before setting up the Solution. Refer to the corresponding product user or implementation guides for detailed instructions.

General Ledger Setup Steps

Define the following in General Ledger:

Human Resource Management Setup Steps

Define organizations (single organization or multiple organizations) in Oracle HRMS.

Subledger Accounting Setup Steps

See: Accounting Methods Builder (AMB), Oracle Subledger Accounting Implementation Guide.

Related Topics

Defining Your Chart of Accounts, Oracle General Ledger Implementation Guide

Defining Currencies, Oracle General Ledger User's Guide

Defining Calendars, Oracle General Ledger Implementation Guide

Adding Periods to a Calendar, Oracle General Ledger Implementation Guide

Defining Ledgers, Oracle General Ledger Implementation Guide

Define Organization, Oracle Human Resources Management Systems Enterprise and Workforce Management Guide

Setup Check List

The following table lists the setup steps to implement the Solution for China Accounting Software Data Interface Standard. Each required setup step must be completed before you implement the solution.

Step Number Step
Step 1 Define and Setup Flexfield
Step 2 Define Cash Flow Items
Step 3 Define Legal Entity
Step 4 Define Responsibility and Setup Profile
Step 5 Setup System Options
Step 6 Setup Subsidiary Account Sources
Step 7 Setup Cash Related Options
Step 8 Define Descriptive Flexfield Assignments
Step 9 Define Cash Flow Item Mapping
Step 10 Define Financial Statement Generator and Cash Flow Statement Assignments
Step 11 Define Other Setup
Step 12 Define Lookups

Setup Steps

If indicated, repeat the step for each ledger, legal entity, or operating unit.

Step 1 Define and Set Up Flexfield (Required)

You must define and set up the key flexfield and descriptive flexfield. You must define the flexfield structure for the key flexfield, which is set up once. You must also define the additional context and context structure for the descriptive flexfield.

Repeat this step for each installation.

Key Flexfield

Use the Key Flexfield window to define the structure of natural accounts in the general ledger based on the predefined key flexfield structure. Define the segments of the accounting structure depending on your organization's requirements.

To define the key flexfield, search for Asia/Pacific Localizations and Account Structure in the Application and Flexfield Title fields respectively in the Key Flexfield window.

Note: You must enable at least one segment for the accounting structure key flexfield.

See: Key Flexfields, Oracle Applications Flexfields Guide.

See: Additional Terms and Concepts for Key Flexfields, Oracle Applications Flexfields Guide.

See: Planning Your Key Flexfield, Oracle Applications Flexfields Guide.

Descriptive Flexfield

Define the descriptive flexfield to enter information that cannot be entered in the standard forms. A descriptive flexfield may have a context-sensitive segment. For China, you must define the descriptive flexfields listed in the following table.

To define the descriptive flexfield, navigate to the Descriptive Flexfield Segments window, search for Application Object Library and Flexfield Segment Values in the Application and Title fields and enter a new code in the Code field under Context Field Values tab.

Note: Do not select an existing code or define segments for the Global Data Elements code.

Application Title Segment Value Set
Application Object Library Flexfield segment value Project YES_NO
Application Object Library Flexfield segment value Third Party JA_CN_THIRDPARTY_TYPE
Application Object Library Flexfield segment value Department YES_NO
Application Object Library Flexfield segment value Personnel YES_NO
Application Object Library Flexfield segment value Account level 2 Digits
Application Object Library Flexfield segment value Currency GL_SRS_CURRENCIES
Application Object Library Flexfield segment value Balance Side JA_CN_DEBIT_CREDIT
General Ledger Journal categories Cash Related YES_NO
General Ledger Enter journals: lines Cash Flow Item JA_CN_CASHFLOW_ITEMS
Financials Common Modules Intercompany: transaction distributions Cash Flow Item JA_CN_CASHFLOW_ITEMS

Important: If you do not use the seeded cash flow value set, then set the value defined for Enter Journals: Lines and Intercompany Transactions Distributions.

Use the Descriptive Flexfield Value Definition window to define descriptive flexfield values and mark the cash related journal categories, or the application will regard the categories as non-cash related.

Note: After you define the descriptive flexfields, you must complete the natural accounts including subsidiary accounts, account level, foreign currency and balance side information.

See: Descriptive Flexfields, Oracle Applications Flexfields Guide.

See: Planning Your Descriptive Flexfield, Oracle Applications Flexfields Guide.

See: Descriptive Flexfield Segments Window, Oracle Applications Flexfields Guide.

See: Defining Segment Values, Oracle Applications Flexfields Guide.

See: Defining Journal Categories, Oracle General Ledger Implementation Guide.

Step 2 Define Cash Flow Items (Required)

Cash flow item is the smallest unit used to calculate cash flow activities. Define the cash flow item for the following reasons:

To define a cash flow item, navigate to the Descriptive Flexfield Value Definition window, search for Create Value Set and enter the value and description for the cash flow item.

Note: Do not define the cash flow item hierarchy. The application only supports detailed cash flow items. You can define the subtotal and detailed relationship between different lines when defining the cash flow statement assignments. You can also use the seeded value set: JA_CN_CASHFLOW_ITEMS.

Repeat this step for each installation.

See: Defining Segment Values, Oracle Applications Flexfields Guide.

Step 3 Define Legal Entity (Required)

You must define at least one legal entity (organization) before using the Solution and assign it to the appropriate responsibility using the profile option: JA: CN Legal Entity. Organizations describe each entity of your company, such as warehouses in different locations or operating units. You can define a new legal entity or configure an organization as a legal entity.

Note: Before defining a legal entity, you must define the ledger and the location.

Repeat this step for each legal entity.

See: Defining Legal Entities Using the Legal Entity Configurator, Oracle Financials Implementation Guide.

Step 4 Define Responsibility and Setup Profile (Required)

You must create a specific responsibility for each user to export the financial data, and set up the profiles for each responsibility. You can either use the predefined responsibility or create a new responsibility.

Repeat this step for each installation.

Define Responsibility

When defining a responsibility, assign the following elements to the responsibility:

See: Defining a Responsibility, Oracle Applications System Administrator's Guide - Security.

Define Profile

A profile is a set of options through which you can modify the application. As a system administrator, you can control Oracle Applications by creating profiles options with different values. You define profiles options at the following levels: site, application, responsibility, user, server and organization.

The following table describes the profile options that must be set for China localizations:

Profile Option Name Value Level
JG: Application Payables Responsibility
JG: Product Asia/Pacific Localizations Site
JG: Territory China Site
JA: CN Legal Entity Legal Entity User Responsibility

See: Overview of Setting Up Profiles, Oracle Applications System Administrator's Guide - Maintenance.

Step 5 Set Up System Options (Required)

You must define the basic information for your legal entity using the System Options window. Before you set up the system options, you must define the following:

Use the System Options window to enter information about the accounting book, enterprise quality and the rounding rule.

Note: A corresponding legal entity related to the current responsibility is displayed in the Legal Entity field. The accounting book information corresponding to the current legal entity is displayed in the Accounting Book Information block.

Use the Miscellaneous Options block to define the rounding rule. The following programs use the specified rule to process the calculations:

Repeat this step for each legal entity.

See: Defining Ledgers, Oracle General Ledger Implementation Guide.

See: Designing Your Accounting Flexfield, Oracle General Ledger Implementation Guide.

See: Defining Legal Entities Using the Legal Entity Configurator, Oracle Financials Implementation Guide.

See: Defining a Responsibility, Oracle Applications System Administrator's Guide - Security.

See: Overview of Setting Up Profiles, Oracle Applications System Administrator's Guide - Maintenance.

Step 6 Set Up Subsidiary Account Sources (Required)

You must define the accounting structure and project source based on your chart of accounts using the Subsidiary Account Sources window.

The following list describes selected options in the Subsidiary Account Sources window:

Repeat this step for each installation

Step 7 Set Up Cash Related Options (Required)

Use the Cash Related Options window to define common cash related setup, which includes accounting classes, cash accounts, and cash flow item value set for one chart of accounts responsibility. Before you set up the cash related accounts, you must define the following:

Repeat this step for each legal entity.

See: Designing Your Accounting Flexfield, Oracle General Ledger Implementation Guide.

See: Defining Legal Entities Using the Legal Entity Configurator, Oracle Financials Implementation Guide.

See: Defining a Responsibility, Oracle Applications System Administrator's Guide - Security.

See: Overview of Setting Up Profiles, Oracle Applications System Administrator's Guide - Maintenance.

See: Define Cash Flow Items.

Accounting Classes

The Cash Flow Statement Program - Data Collection collects the cash related amount and messages from general ledger journals and subledger journal entries.

To maintain the mapping relationship between cash flow items and subledger journal entries, you must define the accounting classes. If the accounting class of subledger journal is not in the range, the Cash Flow Statement Program - Data Collection program miscalculates journal data.

To define the accounting classes:

  1. Navigate to Accounting Classes tab and select Accounting Classes from the list. For example, you can define cash clearing account as cash account in special cases.

Note: There is a seeded accounting class named Cash.

Cash Accounts

Define cash accounts to maintain the mapping relationship between cash flow items and cash related transactions.

After defining the cash related accounts, the Cash Flow Statement - GL Journal Validation and Cash Flow Statement - Intercompany Transaction Validation programs validate the mapping relation to ensure that the cash related journal lines correspond to the relevant cash flow items.

Note: The Cash Flow Statement - GL Journal Validation program checks cash related account from all source journals created in general ledger except receivables and payables. This program also calculates the amount on finding the related cash account.

To define the cash accounts:

  1. Navigate to the Cash Related Accounts window and choose cash related account from the account value list.

Cash Flow Item Value Set

Assign the cash flow item value set as default the cash flow values source. You can define as many cash flow item value sets for any kind of business. However, there must be only one default Cash flow item value set for one chart of account. The description flexfield in journal lines and the intercompany transaction lines store the default cash flow items by as defined in this window, which is also used by the Cash Flow Item Mapping window.

To assign the cash flow item value set:

  1. Navigate to the Cash Flow Item Value Set window and choose from the Cash Flow Item Value Set list of values.

Note: You cannot change the cash flow item value set once you save it.

Step 8 Define Descriptive Flexfields Assignments (Required)

Descriptive flexfields are necessary to enter additional information. You must define the prescribed descriptive flexfields and the descriptive flexfield assignments to specify the descriptive flexfield context and its segment values. The application obtains and processes information from the specified location by referencing the descriptive flexfields assignments.

Use the Descriptive Flexfield Assignments window to assign the context and define the column for the descriptive flexfield.

Note: You must define the descriptive flexfield for the segment value, journal category, and transaction line before defining the descriptive flexfields assignments.

Repeat this step for each installation

See: Descriptive Flexfield Concepts, Oracle Applications Flexfields Guide.

See: Descriptive Flexfield Segments Window, Oracle Applications Flexfields Guide.

Step 9 Define Cash Flow Item Mapping (Required)

Important: Skip this step if you are not using Oracle subledgers.

Use the Cash Flow Items Mapping window to map any supporting reference values to cash flow items for the cash flow statement. Using the mapping information, the Cash Flow Statement Program - Data Collection categorizes the different types of cash flow by detailed cash flow items in subledger.

Before you map the cash flow items, you must define the following:

Important: The invoice category and cash flow category are used for the payable custom source. See: Subledger Transactions.

See: Supporting References, Oracle Subledger Accounting Implementation Guide.

To help users quickly implement and export the cash flow statement report, there is a seeded subledger accounting method: JA_CN_STANDARD_ACCRUAL, which supports the following supporting references that are seeded in the Cash Related Journal Lines for subledger accounting:

The following table details the seeded cash related supporting references.

Application Event Class Journal Line Type Supporting Reference Name
Payables Credit Memos liability, basic Payables Custom Source
Payables Credit Memos Liability with Automatic Offsets Balancing Segment Payables Custom Source
Payables Credit Memos Liability with Automatic Offsets Account Segment Payables Custom Source
Payables Debit Memos Liability, Basic Payables Custom Source
Payables Debit Memos Liability with Automatic Offsets Balancing Segment Payables Custom Source
Payables Debit Memos Liability with Automatic Offsets Account Segment Payables Custom Source
Payables Invoices Liability, Basic Payables Custom Source
Payables Invoices Liability with Automatic Offsets Balancing Segment Payables Custom Source
Payables Invoices Liability with Automatic Offsets Account Segment Payables Custom Source
Payables Prepayments Liability, Basic Payables Custom Source
Payables Prepayments Liability with Automatic Offsets Balancing Segment Payables Custom Source
Payables Prepayments Liability with Automatic Offsets Account Segment Payables Custom Source
Receivables Receipt Receipt Bank Charges Distribution Source Type
Receivables Receipt Receipt Unidentified Cash Distribution Source Type
Receivables Receipt Receipt On Account Application Distribution Source Type
Receivables Receipt Receipt Unapplied Cash Receipt Application Status
Receivables Receipt Unapplied Cash Receipt Application Status
Receivables Receipt Receipt Default Application Transaction Type
Receivables Receipt Receipt Refund Application Receivable Activity
Receivables Receipt Receipt Write-Off Application Receivable Activity
Receivables Miscellaneous Receipt Miscellaneous Receipt Miscellaneous Cash Miscellaneous Cash Activity

Note: You must assign all supporting reference values listed in the table, otherwise the cash flow statement miscalculates the amount.

You can create new supporting references if the seeded supporting references journal lines does not support your cash flow business. To do this, you must create a new subledger accounting method, complete the related setup, and replace the seeded supporting references. When you assign a supporting reference, the following rules apply:

  1. The supporting reference is only assigned to journal line types that are cash offset lines.

  2. Assign the Check ID supporting reference and cash related supporting references to journal line types, except liability lines that match invoices to which supporting references cannot be assigned.

Repeat this step for each subledger accounting method.

Example 1 - Define Cash Flow Rules for a Transaction Type

To define cash flow rules for a receivables transaction type, do the following:

  1. Navigate to the Cash Flow Item Mapping window.

  2. Select the Application as Receivables.

  3. Select the Event Class as Receipt.

  4. Select the Supporting Reference as Transaction Type.

  5. Enter the Start Date as 01-Jan-00.

  6. Assign an operating unit if needed.

  7. Enter or select the transaction type name in the Source Name field.

  8. Select the cash flow item number in the Cash Flow Item field.

Example 2 - Define Cash Flow Rules for Unidentified Cash Receipt

To define cash flow rules for a receivables unidentified cash receipt, do the following:

  1. Navigate to the Cash Flow Item Mapping window.

  2. Select the Application as Receivables.

  3. Select the Event Class as Receipt.

  4. Select the Supporting Reference as Distribution Source Type.

  5. Enter the Start Date as 01-Jan-00.

  6. Assign an operating unit if needed.

  7. Enter UNID in the Source Name field.

  8. Select the cash flow item number in the Cash Flow Item field.

Step 10 Define Financial Statement Generator and Cash Flow Statement Assignments (Required)

Repeat this step for each chart of accounts.

Financial Statement Generator

You must define the exported financial statements by using the financial statement generator. For cash flow statement, you must assign the cash flow items for the corresponding lines in the Cash Flow Statement Assignments window to define the statement templates, accounting assignments, and calculate the formulas in the financial statement generator.

See: Overview of the Financial Statement Generator, Oracle General Ledger User's Guide.

Cash Flow Statement Assignments

Before setting up the cash flow statement assignments, you must define the following:

Use the Cash Flow Statement Assignments window to define the cash flow item assignments for the financial statement. Define the cash flow statement by the financial statement generator and specify the cash flow items for the cash flow activities from different modules in the Cash Flow Statement Assignments window to generate the correct data from Cash Flow Statement - Generation program.

Note: When defining the account assignment (or calculation formula) and cash flow statement assignment at the same time, for one of the lines set in the cash flow statement, the priority of account assignment (or calculation formula) takes priority over the cash flow statement assignment. When the account assignment (or calculation formula) is not defined, the application processes the cash flow item based on the cash flow statement assignment.

Step 11 Other Setups (Optional)

You must set up the following, if you use Oracle Receivables and Payables.

Repeat this step for each operating unit.

A. Set Up Customer Profile and Credit Class (Optional)

If you are using Oracle Receivables, you must create customers and assign a specific credit class (credit rating) for each of them at the header level.

See: Customers Overview, Oracle Receivables User Guide.

B. Set Up Supplier

If you are using Oracle Payables, you must create suppliers.

See: Suppliers, Oracle Payables User's Guide.

Step 12 Set Up Lookups (Optional)

Before exporting the data file, modify the lookup code Account Type based on the enterprise quality to meet the Chinese requirements. If you are using Java supported character sets, then you must add the code for these character sets.

Repeat this step for each installation.

Exporting Financial Data

This section explains the programs used to export financial data to the appropriate format and file naming conventions as specified by the Chinese standards. The files are exported based on the legal entities.

Before you run the programs, you must:

The Solution offers the following data exports for Enterprise and Public Sector:

To run the export programs:

  1. Use the Data Export window or Submit Request window to submit the export programs and download the exported files from the server.

Note: There are many requests running in the View Request window. The first request is the parent request. The remainder generate the data files in the required formats and file naming conventions according to Chinese standards. Select View Output to view the files created in the directory: $APPLCSF/$APPLOUT/LegalEntityID on the file server.

Download the files in ASCII mode instead of binary mode, otherwise you cannot use the files.

For each data export, ensure values are entered in the fields for the Accounting Book Information in the System Options window.

File Format and Attribute Export

This program exports the file name and field attributes for each exported program. There are different export programs for enterprises and public sectors.

Electronic Accounting Book Export

This program exports enterprises' electronic accounting book information.

Chart of Accounts Export

The chart of accounts export program includes the following export programs:

Journal Entry Export

This program exports journal entry information. The subsidiary account is listed when the natural account enables the subsidiary account, otherwise the exported file does not include the subsidiary account group, although it exists in the new journal line table.

Account Balance and Period Amount Export

This program exports natural account balance grouped by subsidiary account from the journal itemization table. The subsidiary account is visible only if the Descriptive Flexfield of the corresponding Natural Account is enabled, otherwise the program is null in the subsidiary account, although the subsidiary account exists in the new account balance table.

Note: The value is 0, if the field value is null.

The program exports the existing account balance to the new account balance table based on the current legal entity. The profit and loss account balance is exported with the functional currency balance.

Financial Statement Export

This section lists all the financial statements for China and describes the common parameters and detailed rows-columns settings for each statement. This section covers the detailed steps for submitting requests, request sets, and the introduction for some statements.

The Financial Statement Export program exports the standard financial statements for enterprises and public sectors. Use the Financial Statement Generator to define the Financial Statement Generator parameters, and then run the Statement Data Export program to export the standard text file that is recorded in the specific directory on the file server. Use the Data Export window or the Submit Request window to submit the request.

The export program converts the defined statements generated by Financial Statement Generator to the National Standard text file that is saved in the specific directory on the file server. The Financial Statement Export Program runs five requests simultaneously. The first request, which is the parent request generates the XML format statements, and invokes the sub program. The second request generates the text files with the predefined XML Publisher templates.

Before running the financial statement export, you must:

To export the financial statement:

  1. Navigate to Data Export window and enter Financial Statement Export in the Submit Request window.

Note: Select XML as the Output Option in the Other Options block

The following table describes selected parameters in the Financial Statement Export request.

Parameter Description
Statement Select the financial statement to export.
Rounding Option Rounded off to the nearest value.
Segment Override Select segment users want to override.
Template Region Select language code for template.
Destination File Name Select the name for the statement.

The following table describes the financial statement for enterprises:

Financial Statements for Enterprises
Statement Name Template Template Region Destination File Name
Balance Sheet Balance Sheet Export En-US Q_ZCFZB.TXT
Profit Statement Profit Statement Export En-US Q_LRB.TXT
Statement of Value Added Tax Payables Statement of Value Added Tax Payables Export En-US Q_YJZZSMXB.TXT
Statement of Changes in Stockholders’ Equity Statement of Changes in Stockholders’ Equity Export En-US Q_GDQYZJBDB.TXT
Statement of Property Depreciation Provision Statement of Property Depreciation Provision Export En-US Q_ZCJZZBMXB.TXT
Profit Appropriation Statement Profit Appropriation Statement Export En-US Q_LRFPB.TXT

Note: You must define the predefined templates for Statement Names for the enterprises and public sector financial statements.

The following table describes the financial statement for public sector:

Financial Statements for Public Sector
Statement Name Template Template Region Destination File Name
Balance Sheet Balance Sheet for Public Sectors Export En-US S_ZCFZ.TXT
Statement of Revenues and Expenditures Statement of Revenues and Expenditures for Public Sectors Export En-US S_SRZC.TXT
Statement of Public Expenditure Statement of Public Expenditure for Public Sectors Export En-US S_SYZCMX.TXT
Statement of Operating Expenditure Statement of Operating Expenditure for Public Sectors Export En-US S_JYZCMX.TXT

Note: When generating the "Statement of Public Expenditure" with the Financial Statement Generator, exchange the positions for row and column. For instance, the row item in the financial statement should be regarded as Column, and the column item in the financial statement should be regarded as Row Set.

The XML Publisher templates for all the reports are predefined in the system. However, you can fine tune the template to suit your financial statement formats. The following sections describe the predefined templates of Statement of Value Added Tax Payables, Statement of Changes in Stockholders’ Equity, and Statement of Property Depreciation Provision due to their complexity.

To implement the Financial Statement Generator report for all the statements, you must define row set, column set and reports separately.

Statement of Value Added Tax Payables Predefined Template

This section explains the Statement of Value Added Tax Payables predefined template. This statement contains two columns: the first column displays the Period to Date (PTD) related tax amount, and the second column displays the related tax amount from the beginning of the year to current period.

Note: You can define financial statements in other languages in Financial Statement Generator, but you must define XML Publisher templates in Chinese to export the statement in Chinese.

When using the Financial Statement Generator, you must define the columns and specify the column sequence for the financial statement generator column set definition. The following table lists the columns and the column sequence for the Statement of Value Added Tax Payables.

Column Name Column Sequence
PTD-Actual 10
40-30 20
BAL-Actual (FY Start) 30
YTD-Actual 40

The column 40-30 denotes the calculation for the second column definition, the remaining columns denote the amount type for column definition or the calculation for the column set definition. The second column Line Number indicates the Row Name field in the Row Set Definition window. Enter the value in the Row Name field according to the value in this column to generate the report.

The following tables describe the Statement of Value Added Tax Payables predefined template and is split depending on the Column Definition column. The following table describes the values for the column definition: VAT Payable.

Column Definition (VAT Payable) Line Number PTD-Actual 40-30 BAL-Actual (FY Start) YTD-Actual
Amount not deducted at the beginning of the year (Represented by a "-" sign) 1     X, *  
VAT on sales 2 X *    
VAT refund for exported goods 3 X *    
Amount transferred from VAT on purchase 4 X *    
Transfer out overpaid VAT 5, 6, 7 X *    
VAT on purchase 8 X *    
VAT paid 9 X *    
Tax reduced and exempted 10 X *    
VAT payable on domestic sales offset against VAT on export sales 11 X *    
Transfer out unpaid VAT 12, 13, 14 X *    
Amount not deducted at end of period (Represented by a "-" sign) 15       X, *

The following table describes the values for the column definition: VAT Unpaid.

Column Definition (VAT Unpaid) Row Name PTD-Actual 40-30 BAL-Actual (FY Start) YTD-Actual
Amount unpaid at beginning of year (Amount overpaid represented by a "-" sign) 16     X, *  
Amount transferred in during the current period (Amount overpaid represented by a "-" sign) 17 X *    
Amount paid at current period 18 X *    
Amount unpaid at end of period (Amount overpaid represented by a "-" sign) 20       X,*

Legend:

Statement of Changes in Stockholders' Equity Predefined Template

This section describes the Statement of Changes in Stockholders' Equity predefined template. The following table lists the columns and the column sequence for the Statement of Changes in Stockholders' Equity.

Column Name Column Sequence
BAL-Actual (FY Start) 10
YTD-Actual 20
20-10 30
BAL-Actual (FY Start) 40
YTD-Actual 50
50-40 60

The columns 20-10 and 50-40 denote the calculation for the second column definition. The remaining columns denote the amount type for column definition or the calculation for the column set definition. The second column Line Number indicates the row number in the statement. Set the row number according to the value in this column. Set it to null if there is no data.

If there are 12 months in your fiscal year, enter -12 in Offset field.

The definition of the Profit Appropriation Statement is the same as the Statement of Changes in Stockholders' Equity

The following tables describes the Statement of Changes in Stockholders' Equity predefined template and is split depending on the Column Definition column. The following table describes the values for the column definition: Capital.

Column Definition (Capital) Line Number BAL-Actual (FY Start) YTD-Actual 20-10 BAL-Actual (FY Start) YTD-Actual 50-40
Balance at beginning of the year 1 X     *    
Increased amount in this year 2     X     *
Including: capital accumulation fund transferred in 3     X     *
Balanced accumulation fund transferred in 4     X     *
Profit Appropriation transferred in 5     X     *
Increased capital 6     X     *
Amount reduced in this year 10     X     *
Balance at the end of the year 15   X     *  

The following table describes the values for the column definition: Capital Accumulation Fund.

Column Definition (Capital Accumulation Fund) Line Number BAL-Actual (FY Start) YTD-Actual 20-10 BAL-Actual (FY Start) YTD-Actual 50-40
Balance at beginning of the year 16 X     *    
Amount increased in this year 17     X     *
Including price in excess of the capital 18     X     *
Non-cash donation 19     X     *
Cash donation 20     X     *
Stock investment provision 21     X     *
Government grants received 22     X     *
Foreign currency capital conversion difference 23     X     *
Other capital accumulation fund 30     X     *
Amount reduced in this year 40     X     *
Including reinvestment capital 41     X     *
Balance at end of the year 45   X     *  

The following table describes the values for the column definition: Legal and Discretional Surplus Reserve.

Column Definition (Legal and Discretional Surplus Reserve) Line Number BAL-Actual (FY Start) YTD-Actual 20-10 BAL-Actual (FY Start) YTD-Actual 50-40
Balance at beginning of the year 46 X     *    
Amount increased in this year 47     X     *
Including: amount Drawing from net profit 48     X     *
Including: Statutory surplus reserve 49     X     *
Discretional surplus reserve 50     X     *
Reserved fund 51     X     *
Enterprise development fund 52     X     *
Amount transferred in from statutory public welfare reserved fund 53     X     *
Amount reduced in this year 54     X     *
Including: compensation of loss 55     X     *
Reinvestment Capital fund 56     X     *
Distribution of cash dividend or profit 57     X     *
Distribution of stock dividend 58     X     *
Balance at end of year 62   X     *  
Including: Legal surplus reserve 63   X     *  
Reserved fund 64   X     *  
Enterprise development fund 65   X     *  

The following table describes the values for the column definition: Statutory Welfare Reserve.

Column Definition (Statutory Welfare Reserve) Line Number BAL-Actual (FY Start) YTD-Actual 20-10 BAL-Actual (FY Start) YTD-Actual 50-40
Balance at beginning of year 66 X     *    
Amount increased in this year 67     X     *
Including: amount drawing from the net profit 68     X     *
Amount reduced in this year 70     X     *
Including: expenditure for collective welfare 71     X     *
Balance at end of year 75   X     *  

The following table describes the values for the column definition: Undistributed Profits.

Column Definition (Undistributed Profits) Line Number BAL-Actual (FY Start) YTD-Actual 20-10 BAL-Actual (FY Start) YTD-Actual 50-40
Undistributed profits at beginning of year 76 X     * *  
Net profit of the current year (net loss represented by a "-" sign) 77   X     *  
Profit distribution in the current year 78   X     *  
Undistributed profits at end of year (not compensated loss represented by a "-" sign) 80   X     *  

Legend:

Statement of Property Depreciation Provision Predefined Template

This section describes the Statement of Property Depreciation Provision predefined template. The following table lists the columns and the column sequence for the Statement of Property Depreciation Provision.

Column Name Column Sequence
BAL-Actual (FY Start) [2] 10
BAL-Actual (FY Start) (DR) [3] 20
BAL-Actual (FY Start) (CR) [4] 30
YTD-Actual (DR) [5] 40
YTD-Actual (CR) [6] 50
50-30 [7] 60
40-20 [8] 70
50-40 [9] 80

The columns 50-30, 40-20, and 50-40 denote the calculation for the second column definition, the remaining columns denote the amount type for column definition or the calculation for the column set definition.

The numbers in the square brackets map to the column headings in the Statement of Property Depreciation Provision predefined template table, which is divided in the columns for clarity purposes.

The following tables describes columns 1 to 4 in the Statement of Property Depreciation Provision predefined template.

Column Definition [1] BAL-Actual (FY Start) [2] BAL-Actual (FY Start) (DR) [3] BAL-Actual (FY Start) (CR) [4]
Total provision for bad debts +    
Including: Accounts Receivables +    
Other Receivables +    
Total provision for loss of Short-term investments +    
Including: stock investments +    
Bonds investments +    
Total provision for reduction of inventory +    
Including: Inventories +    
Raw materials +    
Total provision for loss of long-term investments +    
Including: Long-term stock investments +    
Long-term bond investments +    
Total provision for the loss of fixed assets +    
Including: buildings +    
Machinery +    
Total provision for the loss of intangible assets +    
Including: patents +    
Trademarks +    
Provision for the loss of Construction in progress +    
Provision for the loss of Consigned loan +    

The following table describes columns 5 to 9 in the Statement of Property Depreciation Provision predefined template.

YTD-Actual (DR) [5] YTD-Actual (CR) [6] 50-30 [7] 40-20 [8] 50-40 [9]
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @
    ^ # @

Legend:

Generating the Cash Flow Statement

Overview

This section describes the cash flow statement, the daily transaction process, and the steps to generate the Cash Flow Statement.

The cash flow statement is the financial report required by the Ministry of Finance, China. The cash flow statement describes the cash inflow and outflow of an enterprise.

The cash flow statement provides the following information for a specific period:

The cash flow statement includes two parts: the main statement and the supplemental statement. The main statement includes information about the cash inflow and outflow generated by the operating activities, investing activities, and financing activities. In the supplementary statement, you define the account assignments for the corresponding lines and the formulas to calculate the values in the rows and columns.

There is a seeded XML Publisher template for the cash flow statement, which you can customize according to your requirements.

Note: Ensure that you define the XML Publisher templates in Chinese to export the statement. However, you can define cash flow statements in any language.

Setting Up the Cash Flow Statement

You must define the following to set up the cash flow statement:

Related Topics

Setup Steps

Daily Transactions

You must complete the daily transactions before generating the cash flow statement.

4.3.1 General Ledger Daily Transactions

When entering journals in general ledger, choose the cash flow item in the journal line descriptive flexfields if the journal line account is cash related. On defining the cash related account, run the Cash Flow Statement program - GL Journal validation program before posting the journal to validate that the journal lines accounts are cash related and correspond to the relevant cash flow items, and to prevent you from choosing cash flow items for non-cash related journal lines.

4.3.2 Advanced Global Intercompany System (AGIS) Daily Transactions

You can transfer intercompany transactions to the general ledger or create invoices in subledgers. When entering transactions in AGIS, select the cash flow item in the descriptive flexfields of the distribution line, if the distribution line account is cash related. Do not enter the cash flow items in the descriptive flexfields if transactions must be associated with invoices. The Cash Flow Statement - Collection Program collects the cash related transactions from subledgers. On defining the cash related account, run the Cash Flow Statement program - Intercompany Transaction validation program to validate that the transaction lines accounts are cash related and correspond to the relevant cash flow items, and to prevent you from choosing cash flow items for non-cash related journal lines.

Note: Run the Cash Flow Statement program - Intercompany Transaction Validation program before transferring the transactions to general ledger. You can enter the cash flow items in the journal lines after transferring the transactions to general ledger. You cannot import transactions to general ledger in summary.

4.3.3 Subledger Transactions

The Solution collects subledger cash related activities, that depend on the supporting reference values from subledger journal entries tables. There are seeded subledger accounting methods that the Solution supports when creating the subsequent supporting reference on related journal entries. Therefore, there is no requirement to add cash flow items manually on the subledger transactions window since the mapping relations between supporting reference values and the cash flow items are defined. However, you must know how to create cash related transactions of subledger journal entries and ensure all supporting references are added to subledger journal lines and mapped to related cash flow items. Otherwise, the Cash Flow Statement - Collection program miscalculates the cash flow amount.

Note: After creating subledger journal entries, you cannot add or modify the supporting references. Therefore, ensure that the supporting references are created and assigned to the subledger journal line type.

Receivables Transactions

The following table lists the mapping relation between cash flow items, subledger journal entries, and supporting reference values for receivables.

Cash Related Activities Subledger Journal Entries Supporting Reference Value
Bank Charge Dr: Bank Charge BANK_CHARGES
Unidentified Receipt Dr: Cash  
  Cr: Unidentified Receipt UNID
Unapplied Receipt Dr: Cash  
  Cr: Unapplied Receipt UNAPP
Apply to On Account Dr: Unapplied Receipt UNAPP
  Cr: On Account ACC
Apply to Transactions Dr: Unapplied Receipt UNAPP
  Cr: Receivables Transaction Type Name
Apply to Refund Dr: Unapplied Receipt UNAPP
  Cr: Refund Receivable Activity Name
Apply to Write-Off Dr: Unapplied Receipt UNAPP
  Cr: Refund Receivable Activity Name
Miscellaneous Receipt Dr: Cash  
  Cr: Miscellaneous UNID

Example

Assume the following:

The journal entry would be as follows:

Account Amount Supporting Reference Value
Dr: Cash 1000  
Cr: Unapply Receipt 1000 UNAPP
Dr: Unapply Receipt 800 UNAPP
Cr: Unapply Receipt 800 Sales

The Cash Flow Statement Program - Collection obtains the following messages after checking the mapping rules in the Cash Related Options window.

Supporting Reference Value Cash Flow Item Amount
UNAPP 10102 1000
UNAPP 10102 -800
Sales 10101 800

Payables Transactions

The solution supports invoices that are imported and manually entered. The imported invoice source is as follows:

There is a seeded Subledger Accounting Method Supporting Reference: Payables Customer Source for payables. This generates different supporting values by invoice source.

Cash Related Activities Subledger Journal Entries Supporting Reference Value
Invoices Dr: Distributions  
  Cr: Liability Manual: Values of description flexfield in invoice header or lines
ERS: Item Category
Internet Expenses or Expenses Report: Expenses Item
Payments Dr: Liability Manual: Values of description flexfield in invoice header or lines
ERS: Item Category
Internet Expenses or Expenses Report: Expenses Item
  Cr: Cash  

The supporting reference value for the payment liability line is not seeded. It is the same as the invoices liability line. You must define the following before using the Payables Custom Source:

  1. Enter the value and description for the seeded value set JA_CN_AP_INV_CATEGORY.

  2. Define a special Item Category Set in Inventory named Cash Flow Category for the ERS invoice.

Example 1 - Manual Invoice

Assume the following:

The journal entry would be as follows:

Account Amount Supporting Reference Value
Dr: Liability 980 Pay for Goods
Cr: Cash 980  

The Cash Flow Statement Program - Data Collection obtains the following messages after checking the mapping rules in the Cash Related Options window.

Supporting Reference Value Cash Flow Item Amount
Pay for Goods 10201 980

Example 2 - Import Invoice

Assume the following:

The journal entry would be as follows:

Account Amount Supporting Reference Value
Dr: Cash 180  
Cr: Liability 180 Materials

The Cash Flow Statement Program - Data Collection obtains the following messages after checking the mapping rules in the Cash Related Options window.

Supporting Reference Value Cash Flow Item Amount
Materials 10101 180

Generating the Cash Flow Statement

Before you generate the cash flow statement, you must define the following:

You can generate cash flow statements using the following concurrent programs:

Due to complex calculations in the supplementary statement, you must define three columns when using the predefined XML publisher template. The amount in the second column is YTD-Actual and offset is -1. The third column is YTD-Actual. The amount in the first column is obtained by subtracting the amount in the third column from the amount in the second column.

The values in the supplementary statement are derived as follows:

Cash Flow Statement for Small Enterprises

The cash flow statement for small enterprises is the same as the standard enterprise cash flow statement except for the additional column, which is Amount in the Last Year. The other difference is that the request parameter is not the same as that of the standard cash flow statement.

Cash Flow Statement Example

This section explains the cash flow statement using an example. The column sequence, of the column names for this cash flow statement, is as follows:

Column Name Column Sequence
30-20 10
YTD-Actual (Offset -1) 20
YTD-Actual 30

The following table shows an example of a cash flow statement.

Column Definition Line Number 30-20 YTD-Actual (Offset -1) YTD-Actual
Supplemental information        
1. Adjust net profit to operating activity cash flows        
Net Profit 57 A    
Add: Provision for property depreciation 58 A    
Depreciation of fixed assets 59 A    
Amortization of intangible assets 60 A    
Amortization of other long-term deferred expense 61 A    
Decrease of deferred expense (deduct: increase) 64 A    
Increase of accrued expense (deduct: decrease) 65 A    
Losses on disposal of fixed assets, intangible assets and other long-term assets 66 A    
Losses on scrapping of fixed assets 67 A    
Financial expense 68 A    
Losses from investments (or deduct: gains) 69 A    
Deferred tax credit (or deduct: debit) 70 A    
Decrease in inventories (or deduct: increase) 71 A    
Decrease in operating receivables (or deduct: increase) 72 A    
Increase in operating payables (or deduct: decrease) 73 A    
Other 74 A    
Net cash flows from operating activities 75 A    
2. 1. Investing and financing activities that do not involve cash receipt and payment        
Capitals converted from debts 76 A    
Current maturity of convertible bonds 77      
Leasing fixed assets 78      
3. Net increase in cash and cash equivalents        
Cash balance at the end of the period 79     A
Deduct: cash balance at the beginning of the period 80   A  
Add: cash equivalents balance at the end of the period 81     A
Deduct: cash equivalents balance at the beginning of the period 82   A  
Net increase in cash and cash equivalents 83      

Legend: A indicates Amount.

Attention: Define cash flow statement items in Chinese.

Attention: If you use the predefined cash flow statement XML Publisher templates, enter the line number of the statement in the row name field of the row set definition window, which should be the same as the line number shown in the table.

Cash Flow Statement for Small Enterprises Example

The complex definition of cash flow statements for small enterprises, makes it difficult to define the standard financial statement generator function. Therefore, you must predefine the XML Publisher templates.

The column sequence for the column names is as follows:

Column Name Column Sequence
30-20 10
BAL - FY Start (Offset -13) 20
YTD - FY End (Offset -13) 30
60-50 40
BAL - Actual (FY Start) 50
YTD - Actual 60

The following table is an example of a predefined XML publisher template that you can use to define the column set and the corresponding XML template based on your requirements.

Note: The columns Amount and Amount in Last Year indicate the data sources in the predefined XML Publisher template.

If the fiscal-year month is set as 12, set the offset value to 12.

Column Definition Line Number 30-20 BAL - FY Start (Offset -13) YTD - FY End (Offset -13) 60-50 BAL - Actual (FY Start) YTD - Actual
Supplemental information   A     B    
1. Adjust net profit to cash flows of operating activities:              
Net Profit 57 A     C    
Add: Provision for property depreciation 58 A     C    
Depreciation of fixed assets 59 A     C    
Amortization of intangible assets 60 A     C    
Amortization of other long-term deferred expense 61 A     C    
Decrease of deferred expense (deduct: increase) 64 A     C    
Increase of accrued expense (deduct: decrease) 65 A     C    
Losses on disposal of fixed assets, intangible assets and other long-term assets (or deduct: gains) 66 A     C    
Losses on scrapping of fixed assets 67 A     C    
Financial expenses 68 A     C    
Losses on investments (or deduct: gain) 69 A     C    
Deferred tax credit (or deduct: debit) 70 A     C    
Decrease in inventories (or deduct: increase) 71 A     C    
Decrease in operating receivables (or deduct: increase) 72 A     C    
Increase in operating payables (or deduct: decrease) 73 A     C    
Others 74 A     C    
Net cash flows from operating activities 75 A     C    
2. Investing and financing activities that do not involve cash receipt and payment              
Capitals converted from debits 76 A     C    
Current maturity of convertible bonds 77            
Leasing fixed assets 78            
Net increase in cash and cash equivalents              
Cash balance at the end of the period 79     A     C
Deduct: cash balance at the beginning of the period 80   A     C  
Add: cash and cash equivalents balance at the end of the period 81     A     C
Deduct: cash equivalents balance at the beginning of the period 82   A     C  
Net increase in cash and cash equivalents 83            

Table legend:

Reports and Concurrent Requests

Overview

This section describes the standard reports available for China, and explains selected parameters and the rows-columns settings in the reports.

Account and Journal Itemization Program

Use the Account and Journal Itemization Program to export all standard financial journals to classify the subsidiary account segment and description according to the Chinese requirements.

Note: If the period is null, the range is from the start of operations to the current date. If the calculation volume is large, then run this program when you are not processing the daily transactions.

Character Set Conversion Program

For China, you must export the files in Unicode characters. The program helps you to convert the source character set to the Unicode character set.

Renaming Program

Use the Renaming Program to rename the files to the default naming rules according to the requirements. The following table describes filenames for the exported files.

Program File Name
Electronic Accounting Book Export Program DZZB.TXT
File Format and Attribute Export for Enterprise GSSM.TXT
Chart of Account Export IV - Subsidiary Account 'Cost Center' BMXX.TXT
Chart of Account Export I - Natural Account KJKM.TXT
Account Balance Export Program KMYE.TXT
Chart of Account Export V - Subsidiary Account 'Personnel' RYXX.TXT
Chart of Account Export III - Subsidiary Account - Third Party WLDW.TXT
Chart of Account Export II - Subsidiary Account 'Project' XMXX.TXT
Journal Entry Export Program JZPZ.TXT
Balance Sheet Export Program Q_ZCFZB.TXT
Profit Statement Export Program Q_LRB.TXT
Cash Flow Statement Export - Small Enterprise Q_XJLLB.TXT
Profit Appropriation Statement Export Q_LRFPB.TXT
Statement of Value Added Tax Payables Export Q_YJZZSMXB.TXT