If you are trying to develop a Cash Flow Statement, data inconsistencies can turn you into a crazy person. Many have tried, all have become frustrated. Push button Cash Flow Statements aren’t always possible in many corporate environments, but that doesn’t mean all is lost. Instead of trying to work with the data problem, you can work with your data to facilitate the desired result. If you take a step back, you can focus on the goal of the Cash Flow Statement and get better results.
Cash Flow Statement Tips
During the SAPinsider’s Financials 2012 event, John Cerqueira presented “Improve the quality of cash flow reports using account transformation and currency translation business rules” which outlined 7 tips for using group currency cash flow reporting in SAP BusinessObjects Planning and Consolidation:
- Load affiliate local currency balance sheets and income statements to SAP BusinessObjects Planning and Consolidation
- Execute Account Transformations to derive direct cash flow and indirect cash flow lines in Local Currency
- Use standard SAP BusinessObjects Planning and Consolidation reporting functionality using a direct cash flow account hierarchy for direct cash flow reporting
- Use standard SAP BusinessObjects Planning and Consolidation reporting functionality using an indirect cash flow account hierarchy for indirect cash flow reporting
- Validate Local Currency cash flow statements before executing Currency Translation
- Execute Currency Translation to post Group Currency values to Balance Sheets, Income Statement, and cash flow accounts
- Elimination will have to feature eliminations to cash flow accounts
You can utilize BPC properties and Excel formulas to develop a cost effective and flexible format to produce a Cash Flow Statement.