Cash Flow Management Dynamics AX

4/2/2015 Cash Flow Management: setup | My Financial Dynamics AX

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My Financial Dynamics AX

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Cash Flow Management: setup

The objectives of this article are to explain the relationship between cash flow and other modules in DynamcisAX 2012 and how to setting forecast cash flows.

Cash flow is the movement of money into or out of a business (Incomings and outgoings of cash). It is usuallymeasured during a specified, limited period of time. In Dynamics AX, you can use the tools of cash flowforecasts and currency requirements to estimate future availability needs for the company.

For the cash flow forecasts are reliable, functionality must:

Identify and list all liquidity accounts, which are cash accounts (or equivalent) of the company;Identify and configure the forecast transactions that affect liquidity accounts of the company;Monitor the level of integration of forecast cash flow selecting parameters for forecasts cash flow;Calculate and display forecasts of cash flows;Analyze cash flows with a statement of cash flows created by using the financial statement functionality.

Relationship between cash flow and other modules:

(https://vsdynamicsfinance.files.wordpress.com/2013/08/cashflowgl001.jpg)

1/ Liquidity accounts

Access : GL > Setup > Posting > Liquidity

Setup all liquidity accounts used for caching cash receipt or cash disbursements: bank accounts, cash accounts,….

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Click on “New”Select the main account


2/ Accounts payable parameters

Access : AP > Setup > AP Parameters > Ledger and Sales tax tab

Set up default values to use on vendors transactions affecting the cash flow.

Period between delivery and invoicing: select a value that represents the interval between the purchase orderdelivery date and the expected invoicing of the order.Invoicing period: select a value that represents the interval between future purchases transactions and theinvoice dateTerms of payment: select default terms of payment for purchases. This value is used for cash flowcalculations except when the terms of payment are specified on the purchase order.Settle period: select the value that represents the expected delay between the due date and the date ofpayment.Settle account: select the liquidity account that is the default account to which vendor payments are posted.Allocation key: select the value that reduces the effect of the budget in the cash flow forecast as purhaseorders are created.





Remark: if the value you need is not available, go to AP > Setup > Payment > Terms of payment to create a new one (or clickdirectly on “View details” when you are in the field).

3/ Accounts receivable parameters

Access : AR > Setup > AR Parameters > Ledger and Sales tax tab

Set up default values to use on customers transactions affecting the cash flow.

Period between delivery and invoicing: select a value that represents the interval between the sales orderdelivery date and the expected invoicing of the order.Invoicing period: select a value that represents the interval between future sales transactions and the invoicedateTerms of payment: select default terms of payment for sales. This value is used for cash flow calculationsexcept when the terms of payment are specified on the sales order.Settle period: select the value that represents the expected delay between the due date and the date ofpayment.Settle account: select the liquidity account that is the default account to which customers payments areposted.Allocation key: select the value that reduces the effect of the budget in the cash flow forecast as sales ordersare created.





4/ Vendor and Customer groups

Access : AP/AR > Setup > Customer/Vendor > Customer/Vendor group

For the terms of payment and the settle period, it is possible to set up a more specific value for each groups.

Vendor groups


Customer groups






5/ Vendor and Customer posting profiles

Access : AR/AP > Setup > Vendor/Customer posting profiles

For each customer/vendor posting profile, you can select a Settlement account. This account will be used in thefinancial statement.

Vendor posting profile


Customer posting profile






6/ General ledger accounts

Access : GL > Setup > Chart of accounts > Chart of accounts or Common > Main accounts

Some cash flow transactions are not recorded in a purchase order or in an invoice. It is the case for the paymentof taxes for example. So you can setup some general ledger accounts to be used in the cash flow forecast.

Edit the main account.Check the level of main account selected is “Companies”.Click on “Cash flow forecast” button.Select a percent to apply, termos of payment and the main account.


It is also possible to set up a dependent cash flow forecast for a main account that contains transactions that aredirectly related to transactions in another main account : for more details go to : technet microsoft.(http://technet.microsoft.com/EN‑US/library/aa550077.aspx)


http://technet.microsoft.com/EN-US/library/aa550077.aspx




7/ Budget models

Access : Budgeting > Setup > Budgets models

You can include budgets that are created from budget models in cash flow forecasts : If you want the cash flowforecast to include budgets that are based on a specific budget model, select the Cash flow forecasts check box.


8/ Create a cash flow statement

The last step of the setup is to create a financial statement for the analysis of the cash flow forcast. For moredetails about the creation of a financial statement, go to this article : Financial statement general setup.(https://vsdynamicsfinance.wordpress.com/2013/07/20/financials‑statements‑general‑setup/)

Step 1: Create a financial dimension step with the main accounts : GL > Setup > Financial dimension >Financial dimension set


https://vsdynamicsfinance.wordpress.com/2013/07/20/financials-statements-general-setup/





Step 2: Create a row definition with a structure designer that contains all the settle accounts fromcustomer/vendors posting profiles, general accounts with cash flow forecast, and accounts used in budgetwith forecast. (GL > Setup > Financial statement > Row definition)


Step 3: Create a new financial statlement: GL > Setup > Financial statement > Financial Statement


Step 4: create the column for the cash flow report. (GL > Setup > Financial statement > Financial Statement).Select “Cash flow forecast” to display the cash flow amount.







Example of statement:


9/ Cash flow calculation

Access : GL > Periodic > Currency requirement > Calculate cash flow forecast

To be able to see cash flow forecast, you must run the “Calculate cash flow forecast” batch.

Select which kind of forecast calculation to perform:

Total: Clear all cash flow forecast transactions and recalculate. This option is preferred if you have notupdated the cash flow forecasts for a long time.New: Create a new cash flow forecast, but do not clear other cash flow forecasts. This option lets youinvestigate, for example, the consequences of budget modifications.






10/ Example of cash flow transaction

Vendor account cash flow forecast for period 01/09/2013 to 30/09/2013 = 10 410


New vendor invoice : $5000 / Due date = 19/09/2013






Generating “Calculate cash flow forecast”Display the cash flow report : Vendor transaction cash flow forecast for period 01/09/2013 to 30/09/2013 = 10410 + 5 000


This entry was posted in GL Setup and tagged Cash Flow. Bookmark the permalink.

3 thoughts on “Cash Flow Management: setup”

lally says: August 20, 2013 at 9:20 pmHi Violaine ,

Thank you for the post .

I have one question we have the two settle accounts

a) AP/AR parameters – Settle account – 512010/512020.b) Vendor / Customer Posting profiles – Settle account ‑940100

What is the difference between these two accounts ?

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What is the difference between these two accounts ?When we run the calculate cash flow forecast batch job , does system posts any entries to these above definedaccounts from backed ?Without creating the Cashflow Statement , Is there any standard report available in AX (atleast from level ) ?

Violaine says: August 21, 2013 at 3:08 pmThe settle account in the AR/AP parameter is the default value, used if there is no settle account selectedin the posting profile (In my case, I decided to create specific accounts for cash flow and I forget to changethose in AP/AR parameters).The cash flow forecast create only cash flow entries, there is no accounting posted.For the statement, you can check the standard report (link to technet), but I prefer to use the financialstatement because you can create the report you want.

Admin says: May 13, 2014 at 9:18 pmReblogged this on dynamicsaxgeek and commented:…awesome blog post on AX!

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Cash Flow Management Dynamics AX

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