Cash Flow Analysis (Direct Method) 

Use

In this procedure, you determine the cash flow total from the main items of the financial statement plus the balance sheet changes. This procedure is called the direct method, since the balance sheet changes are directly allocated to their appropriate P&L accounts.

Procedure

  1. Call up the transaction as follows:

    2. Menu Path

    From the Balance Sheet/Profit and Loss Statement/Cash Flow node, choose General ® Cash Flow ® Cash Flow (Direct Method).

    Transaction Code

    S_ALR_87012271

  2. Enter the following data:
    3.

    Field

    Data

    G/L account

    Empty

    Company code

    1000

    Currency type

    10

    Fiscal year

    Current year

  3. Choose .

    4. A cash flow analysis for the last two years for the entire company code is displayed.

    With this method, you are able to immediately establish the number of payments made regarding the obtained revenues into the bank accounts of the company code, or how much has been paid for materials.

    On the left of the screen, there is a navigation menu with the following criteria: Business area, Company code, G/L account, Company, Fiscal year and Period.

  4. In the navigation menu, select Business area.
  5. In the screen area on the right, double-click on Electronic Products.

    6. The navigation menu now contains the selected business area, 7000.

    By selecting or , you can branch to other business areas.

  6. Double-click on the Electronic Products business area to display the details.

    7. The report now refers to this specific business area.

  7. Double-click on the criterion Period from the navigation menu.

    8. The analysis now refers to the values of the individual periods in business area Electronic products. (Previously, the system displayed the total values for the last two fiscal years).

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

  8. Double-click on Period 1.

    9. You can also scroll through the periods in the navigation menu by selecting .

  9. Choose until the overview tree appears.
  10. In the dialog box that appears, choose No.