About the cash flow statement [AX 2012]

Updated: February 9, 2011

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

A cash flow statement is a financial statement that summarizes and breaks down the sources and uses of company cash and cash equivalents over a specific period.

The cash flow statement contains two columns.

The first column lists the name of each category of cash receipt and payment. Each name defines a row in the cash flow statement. The rows in the cash flow statement are determined by the company, and they do not necessarily correspond to the ledger accounts.

The most general categories for the rows in the cash flow statement are defined by the requirements for financial reporting in the country/region in which the company operates. Usually, a company must report changes in operating, investing, and financing activities. The rows in each general category show how the overall change in cash holdings occurred during the period.

At the end of the cash flow statement, rows are usually defined for the period's starting and ending amounts of cash and cash equivalents.

The country/region in which the company operates may require cash flows in foreign currency to be converted to the company's currency. The exchange rate that was in effect at the time of the cash flows is used for the conversion. Additionally, the country/region may require unrealized or "realizable" gains and losses to be included as a separate item in the reconciliation of starting and ending balances. Unrealized or "realizable" gains and losses refer to the effect that changes in the exchange rate have on cash that is held in foreign currencies.


Depending on the setup of the chart of accounts, the types of postings on one ledger account may have to be shown in different rows in the cash flow statement. To resolve this issue, you can modify the chart of accounts at the start of a fiscal year by splitting a ledger account into two or more accounts. Alternatively, you can post to the ledger account by using specific dimensions for various types of transactions.

The second column lists the total amount in the period for each row. Debits and credits are added together in the "total" rows for the main components of the cash flow statement. For more information, see Design the row structure of a traditional financial statement.

For a better perspective on what is causing the movement of cash in the company, make the sub-branches of the main components more specific, and make the breakdown of the cash flow more detailed.

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