Cash Flow Statements

User Guide: Cash Flow Statement Report

Module: General Ledger / Banking Reports

Report Name: Cash Flow Statement - Direct and Indirect Methods (rep603.php)

This guide is created to allow user to have a better idea about the reports and the data it presented.

How to Access the Report

To access and generate the Cash Flow Statement report, follow these navigation steps within your system:

1. Log in to your FrontAccounting / Highnix ERP system.
2. In the top navigation menu, go to Analytics (or General Ledger / Banking, depending on your menu configuration).
3. Select Banking Reports.
4. Click on Cash Flow Statement - Direct and Indirect methods.
5. Configure your filter criteria (Report Period, Dimensions, Bank Selection, Method, and Zero-Row suppression) and click Print PDF or Excel.

Understanding the Methods: Direct vs. Indirect

When generating the report, you can choose between two accounting methods via the Method filter:

• Direct Method (NO):
  • What it does: Tracks actual cash movements (receipts and payments) flowing directly into and out of your bank accounts.
  • How it displays: It lists out individual transaction details grouped by bank account (e.g., Customer Payments, Bank Payments, Transfers) with opening balances, transaction rows, net changes, and closing balances.
• Indirect Method (YES):
  • What it does: Starts with your company-wide Net Profit / Loss Before Tax and adjusts it for working capital changes (such as movements in Accounts Receivable and Accounts Payable) to arrive at operating cash flow.
  • How it displays: Presented as a company-wide summary reconciliation rather than a bank-by-bank breakdown.

Explanation of the Report Layout & Columns

The report is designed in a comprehensive 14-column landscape format to give management both monthly granularity and rolling yearly totals at a glance:

• Account / Transaction Details (Column 1): Displays the description of the bank account, opening/closing balances, transaction references (Direct Method), or operating reconciliation line items (Indirect Method).
• Columns 2 to 13 (The 12 Rolling Months): Displays financial movements broken down month-by-month across a 12-month window ending on your selected Report Period date.
• Column 14 (Fiscal YTD - Year to Date): Accumulates totals from the beginning of your current fiscal year up to the selected report period date.
• Column 15 (12 Mo. to Date): Accumulates the rolling 12-month total across the entire reporting window.

Bank Selection & Filtering Options

• ALL BANK ACCOUNTS: Selecting "ALL BANK ACCOUNTS" from the dropdown lists out every active bank and cash account sequentially, displaying their individual transaction details, net changes, and concluding with a TOTAL NET CASH POSITION summary at the bottom.
• Individual Bank Selection: If you choose a specific bank account (e.g., USD Account - Chequing), the report restricts the Direct Method output strictly to that chosen financial institution. (Note: As standard in corporate finance, the Indirect Method evaluates company-wide ledger movements and therefore displays the company-wide reconciliation regardless of the bank filter).
• Show Zero Rows (YES / NO): When set to NO, the report automatically suppresses and skips rows and accounts where both the Fiscal YTD and 12-Mo totals equal zero, keeping management reports clean and uncluttered.