Cash Flow Analysis (Indirect Method) 

Use

The cash flow total in this example results from the annual net profit (or loss) plus the extraordinary revenues, minus the decrease in value in balance sheet items, plus the increase in value in the balance sheet items.

Procedure

  1. Call up the transaction as follows:
    2.

    Menu Path

    Information Systems ® Accounting ® Financial Accounting ® General Ledger ® Information System ® Balance Sheet/Profit and Loss Statement/Cash Flow ® General ® Cash Flow ® Cash Flow (Indirect Method) Variant 1

    Transaction Code

    S_ALR_87012272

  2. If you have never used this transaction before, you will need to confirm the two dialog boxes with .

    3. The system displays the Cash Flow (Indirect Method) Variant 1 screen.

  3. Choose .

    4. When calling this report for the first time, you are required to make certain settings. To do this, follow the instructions given in the first process.

    The system displays the Execute Cash Flow (Indirect Method) Variant 1: Detail screen. This provides a cash flow analysis for the last two years for the entire company code.

    The first part of the report displays a summarized profit and loss statement for company code 1000 including the annual net profit (or loss). The second part contains all corrections necessary for the determination of the cash flow total. The corrections are displayed as a decrease or increase in value of fixed and current assets, provisions, and as an increase or decrease in cash holdings of activities not affecting the net income.

  4. There is a navigation list on the top left of the screen with the criteria: Business area, G/L account, Company code, Company, Fiscal year, Period, Period/year.
  5. Select the criterion Business area.

    6. The report supplies a cash flow analysis for the business area Mechanical Engineering.

  6. Select the Magnifying glass symbol.

    7. The system displays the Business area dialog-box containing a list of business areas.

  7. Double-click on the Electronic Products business area.
  8. Select the criterion Period from the navigation list.

    9. The analysis now refers to the values of period 001 in business area Electronic products.

    You can use the two arrows to the left of the selection criteria to scroll through periods and business areas to analyze the numbers.

  9. Choose the S sign to the left of the selection criteria to return to the overall list.
  10. Choose until the overview tree appears. Confirm the dialog box with Yes.