Chart of flows

The Chart of Flows page is for adding all the flows that your business uses to record the movement of money, goods, or services into or out of the business. Each flow represents a different type of movement and has a unique number or code for easy identification.

Flows can be classified into two main types: Cash flows (C) and Non-Cash flows (NC).

• Cash flows refer to the movement of actual cash in and out of a business. This includes money received from customers, payments made to suppliers, and other transactions that involve the exchange of cash.

• Non-cash flows refer to transactions that do not involve the exchange of actual cash. Examples include depreciation of assets, changes in inventory levels, and accruals of expenses or revenues.

To access the Chart of Flows page, click Configuration > System Structures > Flows > Chart of Flows.

Create a flow

1. Click .

2. Enter the Flow Number. Max 3 alphanumeric characters.

3. Enter the Flow Description. Max 50 alphanumeric characters.

     Note:  If you are modifying an existing chart of flow, you cannot change an existing flow code on this page.

4. Specify the use/ type of this flow by selecting one of the following:

• Flow for Consolidation Use Only - select this option only if the selected flow is used only for consolidation purposes (e.g. Conversion Differences, Unexplained Changes etc.), or only at consolidated level (e.g. Adjustment Previous Years, Variation of Consolidation Method etc.). This type of flow will not be accessible to the users for data entry.

• Cash flow- select this option only if the selected flow is used in the Cash Flow report.

5. Sign of Flow -select one of the following

   • +: to input amounts with a positive sign

   • – : to input amounts with a negative sign.

6. Default sign is the sign you expect to get, by default, for the closing balance of the flow. The sign associated with a flow must be translated in terms of the parameters, Debit or Credit, linked to the account as well as in terms of the + or – sign attached to the same account. For example:

   • An increase on a Debit account signed + is represented by a flow signed +

   • An increase on a Debit account signed – is represented by a flow signed -

   • An increase on a Credit account signed + is represented by a flow signed +

   • An increase on a Credit account signed – is represented by a flow signed -

   • The sign ? indicates that the flow can either be signed + or –

7. Apply Historical Rate 1 and 2 -: select only if the use of historical rates applies to the selected flow (mainly linked to equity and participation accounts). If selected, it indicates that the historical rate associated with certain flows/movements of this account will prevail during the currency conversion of the account.

8. Rate Type 1 and 2 - the conversion method used for the selected flow. For each flow there will be two options of the rate types you can define and can vary across different companies. See the corresponding Conversion method in field on the Group > Companies page.

9. For group %, specify how the flow must be calculated by using the net financial interests percentage of one of the following:

   • current consolidation period (Use group % of this period).

   • previous period (Use group % of last period).

10. Optionally, click to access the list of specific flows. Specific flows are necessary for Financial Consolidation to carry out the consolidation and to book the related movements. Specific flows are represented by system-generated codes along with the description, which you have to assign to the corresponding group chart of flows.

11. Click .