Cash-Basis Accounting and Cash Flow Reporting

Cash Basis Accounting

Cash-Basis Accounting ( CBA ) is established by means of a separate cash ledger. This is a complete, balanced set of accounts required by and maintained for CBA . It realizes expenses and revenue only at the time cash is paid or received. For certain public sector bodies, cash-basis accounting is the legally required view of the books

Typically, the only accounts posted to in CBA are cash and profit-and-loss accounts.

The cash ledger is an integral part of the new general ledger. It is a non-leading ledger in the new general ledger environment. CBA in the sense of this solution always needs a leading accrual ledger.

Migration tools for a subsequent introduction of CBA are available.

Read the documentation for full information on the configuration and use of CBA .

Note Note

It is not possible to use CBA and Cash Flow Reporting simultaneously.

End of the note.
Cash Flow Reporting

Cash Flow Reporting ( CFR ) provides you with information about the sources of cash raised during the period, the purpose for which cash was used and the cash balance at the reporting date.

The main features of CFR are as follows:

  • It enables you to report cash flows by source account (such as expense, revenue, taxes, inventory).

  • Reporting of the combination of cash clearing accounts and source accounts is also an option.

  • CFR is an integral part of the new general ledger.

  • CFR is based on an accrual ledger; it does not require an additional (cash) ledger.

  • Summarization of postings is possible.

See the Setting Up Cash Flow Reporting documentation for information on how to prepare your installation for CFR .

Use the following links to access some examples of how CFR works: