Cash Flow 
Purpose
Since the cash flow of financial transactions forms the basis for all trading, management, and evaluation activities within Treasury, the flows have particular significance. They are generated by financial mathematics using the general data on the transaction, the structure characteristics and the conditions assigned to transactions. The flows contain both the payment data and their calculation bases, as well as all data required for posting.
The cash flow contains the Flow records in chronological order. They are classified by means of
Flow Types. Typical flow types include nominal amount increases, fixed or variable interest, and repayments.As a result, the investment amount, the interest payment, and repayment amount are concentrated on one or several flow records.
Process Flow
The single flow records, which make up the cash flow, can be generated in various ways:
- They can be entered manually, for example, investment amounts, charges, or special repayments.
- They can be generated automatically, if they are usually generated from the Conditions. e.g. interest or regular repayments.
- By means of Derived flows that appear automatically if you have entered the relevant data in Customizing and in the Standing instructions.
- By Accrual/deferral flows due to the periodical assignment of expenses and income from the transaction.
- On the basis of transaction valuation, for example, with respect to price gains and losses (Valuation flows).
Features
The View menu includes the following views:
- Basic view
: This is set as standard and contains information about payment dates, payment amounts, currencies, flow types with names, posting keys, and activities.
- Posting information
: Entries for the payment date, payment amount, currency, flow type, posting status, posting date, document number, year, and assignment.
- Payment information:
Payment-relevant data about the house bank and account, payer/payee, partner bank details and different payment methods.
- Local currency
: For transactions in a foreign currency, you have an entry for amounts in the local currency as well as the payment amount in the transaction currency. This view displays the foreign and local currency amount as well as the exchange rate for flows that have not been posted yet. The exchange rate is taken from the current rate table and receives the status, "Current rate".
- By choosing Extras
®
Edit cash flow in the basic data screen for entering transactions, you can edit flows. You can set either the exchange rate or the local currency amount here, for example, to avoid rounding off an amount in exchange rate setting. When you double-click a line in the cash flow, an entry screen appears where you can change the corresponding condition.
If you want to set the exchange rate, enter the rate and select "Rate set". To set the local currency amount, follow the corresponding procedure.
In the local currency view in the cash flow, the change is then displayed and it is shown whether the translation has been carried out on the basis of current rates or manual settings.
- Calculation basis:
In this view, you see the entries for interest rates and calculation methods, the respective calculation period and the resulting number of days.
You can also use the "Filter symbol" to make further restrictions (period, according to flow type, etc.) in the cash flow display. You only see the structure characteristics as standard. You can also display accrual/deferral flows, valuation and translation flows by making the corresponding selections.
Result
The cash flow forms the basis for:
- Effective interest rate calculation,
- Periodical accrual/deferral of expenses and revenues,
- Initiating payment,
- Updating Cash Management,
- Updating Financial Accounting via flexible account determination,
- Updating items,
- Interest accrual/deferral,
- Foreign currency valuation,
- Yield calculation.
The following diagram represents the architecture of the financial transactions.
