Special Accounts and Cash Flow Statement

Were Special Accounts ever assignable to a Cash Flow Statement category as are the Chart of Accounts? The Special Accounts in use here are for tracking investment holdings and are showing in the Operating Activities section of the report. Thanks.

Desktop version 21.6.45

Do no understand the question. Use special accounts | Manager explains that special accounts are related to balance sheet and not profit and loss. What is it that you would like to do that involves P&L?

I don’t use the native cash flow regularly, but I use special accounts mostly for loans which isn’t Operating Activities.

I think we should be able to select the cash flow group on the control account level, but I am not sure if that is possible.

Same here and thus belongs to balance sheet.

Yes, but at it’s heart, cash flows is just reordering of the changes in balance sheet accounts. That’s why Balance Sheet accounts need to be assigned to a Cash Flow group.

It is not possible. You can select the cash flow group for ordinary balance sheet accounts you set up, but not control accounts and not, for example, tax liability accounts (which don’t exactly fit the standard definition of control accounts, but do keep subsidiary ledgers for individual tax codes).

Added to the latest version (21.6.61)

You are right. It wasn’t possible but now it is.


Thank you @lubos . This works very well for what I was asking.

Edit: It appears that payments and receipts are following the new classification, but JEs are not. By design?

Can you demonstrate with some screenshots? Not sure what you refer to.

Ok, I hope this is sufficient.
Control Account setting for special accounts (this is a custom control account, not the default) updated for new parameter:
Actual Special Account to which transactions were posted:

A Receipt to the special account (Funds in Transit is a Cash Account):

A Journal Entry to the same special account

And the Cash Flow Statement:

The Receipt shows properly on the statement showing cash flowing in (this was a distribution from the account), but the JE still shows in the operations section of the statement.

Great effort, thank you
All accounts that are created through the control account do not have the option of cash flows like special accounts

@waleed, I am not sure what your point is. Bank accounts do not appear on the Cash Flow Statement.

I think that until these feature will be fully implemented CF Statement will be useless for many users.

Why is there a need? Classifying known types of control accounts in cash flows is trivial and redundant.

By definition, these are the cash flow classification of control accounts based on their composition:

  • Cash and Bank → Net change in cash and cash equivalents
  • Customers → Operating Activities
  • Suppliers → Operating Activities
  • Employees → Operating Activities
  • Inventory Items → Operating Activities
  • Fixed Assets → Investing Activities
  • Intangible Assets → Investing Activities
  • Capital Accounts → Financing Activities
  • Special Accounts → Undetermined and hence user input is required.

If you can provide any practical case where say customer accounts should be classified in any group other than Operating Activities, then we might have a case for allowing the users to change things.

Otherwise it’s just introducing new ways the users can mess up the configuration.

1 Like

Since you can force even a cash account to move also under liabilities and you have the possibility to do this for every kind of account you should give the same possibility under cash flow.

I am not saying you should classify one by one. But you should be free to move one of them in another group.

Apart from this what it is important is the possibility to force generic accounts as cash and bank flows… Otherwise, for my use, the actual cash flow is completely useless.

I would think that the obvious example would be if a business is investing in securities (shares), as opposed to trading in securities, then the dividends declared, but not yet received would be account receivables that would need to be classified as investing activities and not operating activities.

This could be catered for by allowing selection of Cash Flow classification when creating all control accounts. Then, separate control accounts could be set up for accounts receivables - one for operating and one for investing.

Why would a security be set up as a customer?

The security would not be set up as a customer, but the underlying issuing company of the securities would be set up as a customer to record dividends declared by the company and receipt of the dividends in due course.

I am not sure I would agree with that. The company issuing the security is not purchasing goods or services from you; and you are providing nothing to them. The purchase of marketable securities is normally classified as an investing activity, not an operating activity (unless the company is in the business of trading securities). And the receipt of dividends on marketable securities held as investments is an investing activity.

That is what I am saying, in the context of @Ealfardan’s inference that customers need only be classified as Operating activities, for cash flow purposes.