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Submitted by Dynamics Insights on 17 July 2012

Using NAV Account Schedules to create Cash Flow Statements

This blog is an attempt to document how a Cash Flow Statement can be created using standard NAV Account Schedules.

I’ve been asked a few times by Finance Type individuals for a Cash Flow Statement report (yes there is not an out of the box report . . . darn!).  It usually takes me a couple attempts to explain how to accomplish using Account Schedules, and I usually kick myself for not keeping an example on hand.

As some may know, there are two methods, Direct and Indirect, that can be used for a Cash Flow Statement.  I understand the Indirect Method is the more common of the two, regardless I choose to do both in this blog.  Other than the operating activities section, the methods are similar.  A well-structured chart of accounts will greatly assist in setup/maintenance of this Account Schedule.  You’ll see from my examples that I’m largely using Total Accounts to accomplish; hopefully this will eliminate the necessity to reconsider this account schedule if new accounts are setup in the future.  For those of you that are new to NAV or have not yet implanted NAV, a good exercise may be to consider the necessary structure to accomplish a cash flow statement. This may dictate certain accounts/structure in your chart of accounts for your reporting requirements.

My examples are all from NAV 2013 BETA (CRONUS USA, Inc.), but these examples should apply to prior versions also.  I’m sure my examples aren’t necessarily fully GAAP compliant, but I think you’ll understand the basics so that you can incorporate into your own schedules.

Indirect Method Account Schedule:

Indirect method account schedule

Indirect Method Account Schedule comments:

  • Total Accounts, in Totaling Types column, used for many account schedule lines.
  • In operating activities section, non-cash Depreciation and amortization has a unique row no. (095).  Row No. 095 participates in two formulas, Net Cash flows from operating activities line and Net increase in cash and cash equivalents line.
  • Row Type of Beginning Balance for Cash and cash equivalents, beginning of period line.
  • Show column is used to show only certain rows on printed report.
    • Check Total Lines which will only show up on the printed report if the report is out of balance with cash accounts (certainly not necessary – but I like to have check totals just in case).

Direct Method Account Schedule:

Direct method account schedule

Direct Method Account Schedule comments:

  • The operating activities section is where the differences reside as compared to the Indirect Method, other sections are largely the same.
    • Note that I choose to have many rows set with Show = No.  I found when reconciling it was nice to see those rows in the Account Schedule Overview (those rows won’t show on the printed report).

Column Layout:

Column layout in Dynamics NAV

Column Layout comments:

  • Again, I choose to Show certain columns as Never so that I could see in Account Schedule Overview, but not on the printed report.  Again, this is very useful when setting up and reconciling the report.

Account Schedule Overview:

Account schedule overview

Account Schedule Overview comments:

  • Again, here you’ll be able to see columns and rows even if you set Show = Never in column layout and Show = No in account schedule.  Those settings only apply to the printed report.

Printed Report:

Cash flow printed report from Dynamics NAV

I hope this blog helps provide you an example you can follow to establish your own Cash Flow Statement from standard NAV functionality.

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