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. IFS/Payment stores information on supplier invoices and payment document balances, customer invoices and payment document balances, and balances on accounts at the payment institutes of the company. When data are retrieved from IFS/Payment, the system allocates a status to each outstanding balance. The status of the flow is a measure of payment reliability.
The following types of status exist:
- Status 1 - exact date and amount are known. The system allocates status 1 to supplier invoices included in payment orders with unconfirmed payment, i.e., confirmation of payment transaction has not been entered.
- Status 2 - the amount is known but not the exact date. The system allocates status 2 to supplier invoices and supplier payment documents that are confirmed. The invoices are not included in a payment order. All customer invoice and payment document balances taken from IFS/Payment are assigned status 2.
- Status 3 - the cash flow is adequate, but exact amount and date have not been set. Unconfirmed supplier invoices receive status 3.
- Status 4 - the cash flow is uncertain. This status can be set only on manual cash flows.
- Status 5 - the cash flow is unlikely to occur. This status can be set only on manual cash flows.
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 are retrieved from IFS/Customer Order, the system allocates a status to the customer order lines. The status is a measure of payment reliability.
The following types of status are possible for customer order lines:
- Status 2 - the amount is known but not the exact date. The system allocates status 2 to order lines partially delivered, delivered, and preliminary invoiced.
- Status 3 - the cash flow is adequate, but exact amount and date have not been set. Planned, released, reserved, and picked order lines receive status 3.
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 from IFS Distribution if the IFS/Purchasing module is installed. When data are retrieved from IFS/Purchasing, the system allocates a status to each purchase order line. The status of the order lines is a measure of payment reliability.
The following types of status are possible for purchase order lines:
- Status 3 - the cash flow is adequate, but exact amount and date have not been set. Confirmed, arrived, received, and closed purchase order lines receive status 3.
- Status 4 - the cash flow is uncertain. Released purchase order lines receive status 4.
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.
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 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 Analyse 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. The user can also enter and update analyses in the Analyse folder. This folder also contains windows for generating reports and cash flow exposure details that can be then 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 Analytics. 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.