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Cash flow reporting is a financial statement that provides the cash inflows and outflows with the opening and closing balance of an organization.
In SAP S/4HANA Cloud, public sector, the cash origin account is the key field in determining cash flow. The cash origin account is maintained in the master data of G/L accounts under the Public Sector Management section. All accounts, except for customer and vendor reconciliation accounts, bank accounts, and zero balance clearing accounts, should be assigned with a cash origin account at a summary level. Underlying G/L account master data should exist to assign it as a cash origin account.
The cash origin account is set up as a splitting and a balancing characteristic. The cash origin account is not an input field and, in the transactions, it is determined from the G/L account or inherited throughout the posting processes up to the final payment. This enables reporting of cash flow separately according to source account (for example, expenditure, revenue, tax, inventory, assets, and so on). This gives you information about the origin of cash received or paid during an accounting period.
Cash flow reporting in SAP S/4HANA for Public Sector Management supports the direct method of cash flow statement based on the universal journal (table ACDOCA) and you do not need an additional cash ledger.
Cash Origin Account
- The cash origin account is maintained in the G/L account master data, on the Public Sector Management Data tab.
- Search help will provide a list of existing G/L accounts from which an account is assigned as cash origin account. This list does not include cash accounts, customer/vendor reconciliation, or zero balance clearing accounts.
- It is recommended that the cash origin account be assigned at a summary level, for example, all payroll accounts are assigned to one cash origin account. In this way, you can report Payment to employees from this cash origin account.
Cash origin (or RE_ACCOUNT) is a zero balancing clearing, balancing account and is mandatory for document splitting and balancing purposes. This field cannot be input and is automatically derived from the cash origin field of a "Public Sector Management Data" G/L account, except when the G/L account is a reconciliation or zero balance clearing or cash account.
Summarization
It is recommended that all similar categories of sources or uses of cash be mapped to the same cash origin account. This reduces the number of document splitting and balancing lines. It is not recommended to maintain general ledger to cash origin account on a one-to-one basis.
Summarization Example
| G/L Account | Description | Cash Origin Account | Description |
|---|---|---|---|
| 61100000 | Payroll Expenses | 61100000 | Payroll Expenses |
| 61101000 | Payroll Wages | 61100000 | Payroll Expenses |
| 61022010 | Sick Pay | 61100000 | Payroll Expenses |
| 61020000 | Payroll Bonus | 61100000 | Payroll Expenses |
| 61021000 | Payroll Overtime | 61100000 | Payroll Expenses |
Consider the example illustrated in the table, Summarization Example. All the general ledger accounts for the payroll accounts are assigned to one cash origin account. In this way, you can report Payment to employees in an efficient way.
Note
There is no hierarchy for cash origin account.Cash Flow Reporting: Example
Vendor Invoice: Entry View
| DR/CR | G/L Account | Amount | Cost Center | Fund | Cash Origin |
|---|---|---|---|---|---|
| DR | Office Supplies | $1000.00 | Administration | 17P1100 | Supplies |
| DR | Computer Supplies | $2000.00 | Human Resource | 17P1200 | Supplies |
| CR | Vendor | $3000.00 |
Vendor Invoice: G/L View
| DR/CR | G/L Account | Amount | Cost Center | Fund | Cash Origin |
|---|---|---|---|---|---|
| DR | Office Supplies | $1000.00 | Administration | 17P1100 | Supplies |
| DR | Computer Supplies | $2000.00 | Human Resource | 17P1200 | Supplies |
| CR | Vendor | $1000.00 | 17P1100 | Supplies | |
| CR | Vendor | $2000.00 | 17P1200 | Supplies |
Cash Flow Reporting: Example (when Treasury Fund is not Active)
Vendor Payment: Entry View
| DR/CR | G/L Account | Amount | Cost Center | Fund | Cash Origin |
|---|---|---|---|---|---|
| DR | Vendor | $3000.00 | |||
| CR | Bank Clearing | $3000.00 |
Vendor Payment: G/L View
| DR/CR | G/L Account | Amount | Cost Center | Fund | Cash Origin |
|---|---|---|---|---|---|
| DR | Vendor | $1000.00 | 17P1100 | Supplies | |
| DR | Vendor | $2000.00 | 17P1200 | Supplies | |
| CR | Bank Clearing | $1000.00 | 17P1100 | Supplies | |
| CR | Bank Clearing | $2000.00 | 17P1200 | Supplies |
Note
If you are using a Treasury Fund, cash flow reporting by fund and cash origin account must be performed by selecting the zero-balance clearing lines instead of the bank/bank clearing accounts.Cash Flow Reporting: Example (when the Treasury Fund is Active)
Vendor Payment: Entry View
| DR/CR | G/L Account | Amount | Cost Center | Fund | Cash Origin |
|---|---|---|---|---|---|
| DR | Vendor | $3000.00 | |||
| CR | Bank Clearing | $3000.00 |
Vendor Payment: G/L View
| DR/CR | G/L Account | Amount | Cost Center | Fund | Cash Origin |
|---|---|---|---|---|---|
| DR | Vendor | $1000.00 | 17P1100 | Supplies | |
| DR | Vendor | $2000.00 | 17P1200 | Supplies | |
| CR | Bank Clearing | $3000.00 | 9999 (Treasury) | 9999 (Treasury) | |
| DR | Zero Balance Clearing a/c | $3000.00 | 9999 (Treasury) | 9999 (Treasury) | |
| CR | Zero Balance Clearing a/c | $1000.00 | 17P1100 | Supplies | |
| CR | Zero Balance Clearing a/c | $2000.00 | 17P1200 | Supplies |
Using the Display Line Items in General Ledger (SAP Fiori ID: F2217) report, you can get balances on the cash origin account.
The figure, Report, shows an environment where the Treasury Fund is active, so the G/L account is filtered by zero balance clearing account and Treasury Fund is excluded from the selection. When the Treasury Fund is not active, you can use bank or bank clearing accounts.