Setting up Cash Flow Reporting in SAP PSCD

ChristopheC · ‎02-15-2024

Tax authorities sometimes require a monthly revenue report on a cash basis, where revenue/expenses are accounted for when a payment has been received/made.

In this blog, we explain how the Cash Flow Reporting feature can be used in SAP PSCD to support this requirement.

Let's first have a look at the accounting postings when cash flow reporting is inactive, and then when it's active.

Clearing with Cash Flow Reporting inactive

a)	Receivable and charges are posted
a')	Transfer to General Ledger
b)	Payment is received in FI (bank statements)
c)	Payment is transferred to PSCD and clearing takes place
c')	Transfer to General Ledger

Clearing with Cash Flow Reporting inactive.png

Clearing with Cash Flow Reporting active

a)	Receivable and charges are posted
a')	Transfer to General Ledger
b)	Payment is received in FI (bank statements)
c)	Payment is transferred to PSCD and clearing takes place + Zero balancing takes place
c')	Transfer to General Ledger

Assumptions

SAP PSCD is active and a company code has been configured (in our example P101)
Cash Ledger is NOT active, indeed Cash Ledger and SAP PSCD cannot be used in parallel (cf. SAP note 2457643 - Cash ledger and PSCD - SAP for Me)
No Input or Output Tax is calculated.
Business functions PSM_FA_CASH and PSM_FA_CI_2 have been activated.

Main Reference

SAP note 1769341 - Cash Flow Reporting with PSCD and New G/L - SAP for Me

Further SAP Help references

Key Customizing Steps

SAP note 1769341 - Cash Flow Reporting with PSCD and New G/L - SAP for Me, released in 2012, describes the customizing steps to implement cash flow reporting with SAP PSCD.

SAP PSCD

Activate "Cash Flow Analysis Active" in the company code setup in SAP PSCD (IMG - Financial Accounting - Contract Accounts Receivable and Payable - Organizational Units - Set Up Company Codes for Contract Accounts Receivable and Payable)

Function module FKK_SAMPLE_0066 is active in event 0066. This event is used to set the account assignment in field REACC for both business partner items and G/L account items.

SAP Public Sector Management

The setup of Funds Management is NOT required to use Cash Flow Reporting, but the global Funds Management functions must be active (IMG - Public Sector Management - Funds Management Government - Basic Settings - Activate Global Funds Management Functions (PSM-FM))
Activate "Cash Flow Reporting" in SAP Fund Accounting (IMG - Public Sector Management - Fund Accounting - General Ledger Accounting (New) - Cash-Basis Accounting and Cash Flow Reporting - Cash Flow Reporting - Activate Cash Flow Reporting)
Define whether special processes for RE_ACCOUNT are only updated in aggregated form in the general ledger. This step is optional: if nothing is specified, the system uses the G/L account as the value for RE_ACCOUNT (IMG - Public Sector Management - Fund Accounting - General Ledger Accounting (New) - Cash-Basis Accounting and Cash Flow Reporting - Cash Flow Reporting - Assign Standard G/L Account)
Define a standard account for the expense/revenue account in the cash flow reporting. The system uses this account when the required G/L account is not available at the time of posting, for example for non-assigned payments. (IMG - Public Sector Management - Fund Accounting - General Ledger Accounting (New) - Cash-Basis Accounting and Cash Flow Reporting - Cash Flow Reporting - Edit Constant for Non-assigned Processes)
- The constant 0PACC (Payment on Account) is mandatory.

SAP Financial Accounting

Assign the G/L accounts to an item category (IMG - Financial Accounting - General Ledger Accounting - Business Transactions - Document Splitting - Classify G/L Accounts for Document Splitting)
- Every account must be assigned to an item category. The item category characterizes the items of an accounting document, derived from an account type, such as cash accounts, balance sheet accounts, and revenue accounts. Cash accounts (bank accounts and bank clearing accounts) must be assigned to category 04000. Balance sheet accounts must be assigned to 01000 and revenue accounts to 30000.
Classify Document Types for Document Splitting (IMG - Financial Accounting - General Ledger Accounting - Business Transactions - Document Splitting - Classify Document Types for Document Splitting)
- The document type specifies the business process.
  - A document type defined for incoming cash is assigned to business transaction 0400 (Bank account statement).
  - A document type used for forwarding postings to FI is assigned to business transaction 0000 (Unspecified posting).

Define Document Splitting Rule (IMG - Financial Accounting - General Ledger Accounting - Business Transactions - Document Splitting - Extended Document Splitting - Define Document Splitting Rule)
- From the document type used for forwarding postings, the system derives a business transaction and variant. For the relevant splitting rule, the correct account key must be assigned to that rule. It must be an account key with an account for cash postings as well as non-cash postings.

A zero-balance account for cash postings must be defined (IMG - Financial Accounting - General Ledger Accounting - Business Transactions - Document Splitting - Define Zero-Balance Clearing Account). Postings on the cash-relevant zero-balance account receive the item category 01001 (Zero-Balance Posting).

RE_ACCOUNT characteristic must be defined as zero-balancing (IMG - Financial Accounting - General Ledger Accounting - Business Transactions - Document Splitting - Define Zero-Balance Clearing Account)

Finally, assign a default account assignment to constant 0PACC; Use anything else but RE_ACCOUNT (IMG - Financial Accounting - General Ledger Accounting - Business Transactions - Document Splitting - Edit Constant for Nonassigned Processes)

Accessing the Cash Flow Analysis Report

The CFR report can be accessed via transaction code PSFCL.

Selection groups can be maintained via transaction codes GS01/02/03 in the SAP Report Writer.