Understanding Cash Flow Rules

After you verify the activity codes in UDC table 10/CF, you must set up cash flow rules. These rules specify the accounts that are associated with each activity code, the order in which the accounts appear on the cash flow statement, and description.

For example, on the cash flow statement, activity code 30 represents all accounts included in the subtotal for Cash Generated from Operations. When you set up cash flow rules for activity code 30, you create a separate line and description for each of the different accounts. For example, you might create these lines for activity code 30:

• Trade and Other Receivables

• Inventory

• Trade Payables

You use the Statement of Cash Flow Rules program (P10520) to set up cash flow rules for activity codes 20 through 70 and assign accounts and a description to each line that you want to appear on the Statement of Cash Flow report (R10521). You also specify whether the accounts for a line normally have a debit or credit balance. For activity code 10 only, you use the same program, but assign the AAI item FSxx for net income before tax, and the system retrieves the amount.

The subtotal descriptions that print on the report correspond to the different activity codes. The subtotal descriptions are hard-coded in the report and are based on IAS 7.

The rules for cash flow statements are stored in the Statement of Cash Flow Rule table (F10520).