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Cash Flow Planning

Data processing types

The Cash Flow Planning data processing is as follows:

  • Copy actual data
  • Create financing, assets and FX hedging events
  • Create objects, derived events and entries
  • Indirect taxes and cash pooling
  • Indirect taxes calculation
  • Dividends calculation
  • Tax balance payment
  • Tax down payment
  • Financial simulation
  • Revaluation and Devaluation
  • Direct taxes calculation

For more details on Cash Flow Planning, see.

Cash Flow Planning: entry registration

Entries are registered only in the months between the estimate start date and the estimate end date. However, the estimate start date may not coincide with the calculation start date. This happens when the calculation needs to start before the simulation period.

Examples of early calculation

Example 1

Simulation calculation starts from the December before the simulation start date. This allows you to automatically obtain the effects of the initial balance sheet amounts by calculating the collection and payment methods associated with the items pertaining to December year x-1 but which have financial manifestation in the months of the simulation.

Example 2

Forecast with simulation start date in April and calculation start date in January. For postponed semi-annual invoicing, the system begins to calculate the amounts to be aggregated in January and disposes of the accrual for the first six months of the year in June. This means you do not have to wait for the accounting of the first six months of simulation and can register the entry in October.

Asset depreciation on actual and balance

In general, to calculate depreciation, the budget data processing only considers purchase events contained in the simulation range. However, the system can be told to also include purchase events with (purchase) date prior to the simulation in that calculation. This is particularly useful when copying data between processes, since this transfers the purchase event by date. In fact, in this case, after the transfer to different periods, the purchase events may fall outside the simulation interval and the system may not calculate the relative depreciation.

Calculate Financial policy for counterparty entity

In general, during the financial policy calculation, the budget data processing does not consider the individual amounts of the counterparty entities. Regardless of those values, if the amount on the main section is greater than zero, it is moved to the active section, and if it is less, to the passive section. However, the system can be told to also consider amounts of counterparty entities during the calculation, in sorting from one section to another.

However, financial policy by counterparty entity is incompatible with cash pooling. In fact, in cases of cash pooling, when the system performs the Section shifts and generates interest, it always defines the counterparty entity as the parent entity. Therefore, when calculating the financial policy by counterparty, the system checks that none of the sections involved in the sorting has the Cash Pooling option selected. Otherwise, it will return a blocking error.