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. 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.

    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 determining the cash flow total. The corrections are displayed as a decrease or increase in value of fixed and current assets, increases or decreases in provisions, and as an increase or decrease in cash holdings of activities not affecting the net income.

  4. On the left of the screen, there is a navigation menu with the following criteria: Business area, G/L account, Company code, Company, Fiscal year, and Period.
  5. Select the criterion Business area.
  6. Double-click on the business area Electronic Products.

    7. The report provides a cash flow analysis for the business area Electronic products.

  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.

  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.