The function of the Cash Flow Analysis process is to enable analysis of cash flows. The information from the analysis can be used for making cash flow decisions of a company or group of companies. Cash Flow Analysis can also be used as support for managing currency risks in future original currency cash flows. The cash flow exposure reports can be viewed in detail, as well as in summaries divided per time slot and sources.
The information forming the basis of calculations can both be entered manually and transferred from IFS/Payment, IFS/Customer Order, or IFS/Purchasing. IFS/Payment contains payment plans for both customers and suppliers. IFS/Payment also keeps account balances with the company’s payment institutes. IFS/Customer Order contains information on customer orders, preliminary invoiced orders, and order lines. Information on purchase order lines is stored and transferred from IFS/Purchasing.
From the Navigator, you can select a window by marking the necessary folder and double-clicking the window icon with the left mouse button or by clicking the layout window below the selected activity in the work flow of the Cash Flow Analysis process model.
You find the Cash Flow Analysis process in the IFS/Cash Flow Analysis module. Familiarize yourself with the structure of the graphic interface for IFS Applications before you start working. The IFS/Cash Flow module is part of IFS Financials. IFS Financials contains information groups common to all products within IFS Applications, e.g., the currency the company uses.
The Cash Flow Analysis process is integrated with IFS/Application Services, IFS/Enterprise, and IFS/Accounting Rules. Basic data is entered in these modules before you can begin working with Cash Flow Analysis. You can locate general information for each module in IFS Financials. This also applies to IFS/Cash Flow Analysis.
IFS/Payment
IFS/Cash Flow Analysis obtains information on cash balances from IFS/Payment if that module is installed. This information is in IFS/Cash Flow Analysis divided into three sources. Accounts Payable, Accounts Receivable and Cash Account Balances. Accounts Payable store information on supplier invoices and supplier payment document balances. Accounts Receivable store information on customer invoices and customer payment document balances. Cash Account Balances store balances on accounts at the payment institutes of the company. When data are retrieved from IFS/Payment, it includes a payment reliability status, cash flow status, to each outstanding balance. This status can be changed by the user. The status of the flow is a measure of payment reliability.
IFS/Customer Orders
IFS/Cash Flow Analysis obtains information on Customer Order from IFS Distribution if the IFS/Customer Order module is installed. When data is retrieved from IFS/Customer Order it includes a payment reliability status – cash flow status, to the customer order lines. This status can be changed by the user. The status is a measure of payment reliability.
Note that a printed Customer Order will be included in customer invoice balance transferred from IFS/Payment.
IFS/Purchasing
IFS/Cash Flow Analysis obtains information on purchase orders and purchase requisitions from IFS Supply Chain if the IFS/Purchasing module is installed. When data are retrieved from IFS/Purchasing it includes a payment reliability status – cash flow status, to each purchase order line and requisition line. This status can be changed. The status of the lines is a measure of payment reliability.
Note that there is no automatic link between previously entered supplier invoices and purchase orders. The user must connect supplier invoices with purchase orders. If not, a double cash flow will be generated from IFS/Payment and from IFS/Purchasing.
IFS/Sales Contract Management
IFS/Cash Flow Analysis obtains information on sales contract application for payments from IFS/Sales Contract Management. When data is received, the status of the sales contract application for payment is mapped to a cash flow status, for each payment due from the contract. This cash flow status can be changed. The cash flow status number is a measure of the reliability of the payment.
Note: When the application for payment is partially invoiced this source will be used to give the remaining invoiced amount, and once it has been fully invoiced it will no longer belong this cash flow source.
IFS/Sub Contract Management
IFS/Cash Flow Analysis obtains information on sub contract valuation from IFS/Sub Contract Management. When data is received, the status of the sub contract valuation is mapped to a cash flow status, for each payment to be made on the contract. This cash flow status can be changed. The cash flow status number is a measure of the reliability of the payment..
Note: When the valuation is partially invoiced this source will be used to give the remaining invoiced amount, and once it has been fully invoiced it will no longer belong this cash flow source.
Working with Cash Flow Analysis
Before you start entering information check that Basic Data Required (BDR) has been set up as per instructions in Define Financials Basics, the Set up Basic Data Cash Flow Analysis process. This process contains basic information used as the sources for calculations. You can also enter cash flow types of your own definition in this folder. These can be used when you update an analysis or as search terms when you print cash flow exposure reports.
In the Sources folder, you can enter information that is not retrieved from IFS/Payment, IFS/Customer Order, or IFS/Purchasing. This includes individual or recurrent cash flows, such as payroll and rents. There is also a function for entering the company’s balances with payment institutes. You can delete or modify cash balances by stating a new value per stated date. You can also enter cash funds without linking them to an account. Information for all accounts, account balances, and currencies is used to analyze future cash flow balances.
The Cash Flow Analysis folder contains windows for gathering data used as a basis for analysis. Data is retrieved from cash flows entered manually in IFS/Cash Flow Analysis and from IFS/Payment, IFS/Customer Order, and IFS/Purchasing if these modules are installed. IFS/Payment stores information for supplier balances, customer balances, and balances with payment institutes. IFS/Customer Order stores information on customer orders. IFS/Purchasing stores information on purchase orders and purchase requisitions. The user can also enter and update analyses in the Cash Flow Analysis folder. This folder also contains windows for generating reports and cash flow exposure details that can be copied to another tool.
Working with Cash Flow Forecast
Cash Flow Forecast concept enables you to create and save cash flow forecasts based on selected analysis IDs in order to compare and analyze past and future cash flow related trends.
In order to compare cash flow forecasts, you need to create cash flow forecasts for comparable sequences of time. For example, one cash flow forecast type can be defined to contain all monthly cash flow forecasts. In order to compare these monthly forecasts, all such forecasts need to be created at the beginning of each month (or at the end of previous month). It is possible to create different versions for a cash flow forecast (e.g. preliminary version and the final version).
Details relating to cash flow forecasts can also be accessed via the Cash Flow Forecast information source in IFS Business Reporter. This information source is connected to the Time Scale dimension which enables you to analyze cash flow forecast information in any preferred time scale. For example, you can use a monthly or a weekly time scale, or a customized time scale (e.g. ten-day slots for the next thirty days) in order to get different time-wise views of the same cash flow forecast details.
It is also possible to write back manual cash flow amounts using IFS Business Reporter. In order to do so, the relevant manual cash flow item should be a part of a cash flow forecast and an IFS Business Reporter report should be designed to retrieve and write back the information.