Cash Flow Item Default Logic For China Cash Flow Values In Transactions

NetSuite China Localization uses the following lookup logic to fill the China Cash Flow Item automatically while creating AP and AR transactions. This automated feature reduces users' workload when creating transactions.

Cash Flow Logic for Cash Flow Statement Report:

• For Items that are used only for purchases or sales:

  • NetSuite prioritizes the China Cash Flow Item value set in the Item record. For more information, see Setting Up China Cash Flow Item for Inventory Items.

  • If no China Cash Flow Item value is defined in the item record, NetSuite uses the value defined in the Item record's selected account. For more information, see Setting up China Cash Flow Item for Chart of Accounts.

• For Items that are used in both sales and purchases:

  • NetSuite uses the China Cash Flow Item values defined in the chart of accounts. Make sure that these values are defined in the chart of accounts. Otherwise, these are left blank.

  • In a purchase transaction, NetSuite uses the China Cash Flow Item value defined in its Expense or Cost Of Goods Sold (COGS) account.

  • In a sales transaction, NetSuite uses the China Cash Flow Item value defined in its Income account . The following table describes the specific Cash Flow Item used:

    Item Type	Cash Flow Item for Account
    Assembly/Bill of Materials	Income for Accounts Receivable, Assets for Accounts Payable
    Lot Numbered	Income for Accounts Receivable, Assets for Accounts Payable
    Serialized	Income for Accounts Receivable, Assets for Accounts Payable
    Inventory Item	Income for Accounts Receivable, Assets for Accounts Payable
    Lot Numbered	Income for Accounts Receivable, Assets for Accounts Payable
    Serialized	Income for Accounts Receivable, Assets for Accounts Payable
    Non-inventory Item
    For Resale	Income for Accounts Receivable, Expense for Accounts Payable
    Other Charge
    For Resale	Income for Accounts Receivable, Expense for Accounts Payable
    Service
    For Resale	Income for Accounts Receivable, Expense for Accounts Payable

• For Cost Categories, NetSuite uses the China Cash Flow Item value defined in the account's chart of accounts. For more information, see Setting up China Cash Flow Item for Chart of Accounts.

• If transactions in your subsidiary use a unique account for accounts payable or accounts receivable, you can use the subsidiary default. The feature automatically categorizes your transactions based on your accounts for accounts payable and accounts receivable. Configuring this enables you to categorize transactions without setting the China Cash Flow Item field for all items. For more information, see Setting Up China Cash Flow Item for Subsidiary.

  • Configuring this automatically fills the Cash Flow Item field when creating journal entries. See Override China Cash Flow Item When Making Journal Entries.

  • The China Cash Flow Item field value in the chart of accounts or item record overrides the subsidiary default.

• The China Cash Flow Item category set at the line item level takes priority over the one set in the transaction record. To prioritize the classification in the transaction record, enable Use Header CFI Value to Override Line Items Under the Subtabs in your subsidiary settings. For more information, see Setting Up China Cash Flow Item for Subsidiary.

  You can use the following transactions with the Use Header CFI Value to Override Line Items Under the Subtabs setting:

  • Vendor Payment

  • Vendor Prepayment (with sub items collected through associated Vendor Prepayment Applications)

  • Customer Payment

  • Deposits

  • Cash Sales

  • Cash Refund

  • Checks

• Cash Flow Items selected for Deposit transactions are supported. China Localization collects China Cash Flow Item information for the following deposits:

  • Payments

  • Other Deposits

  • Cash Back

General Notices