Understanding Cash Flow Analysis
& Statements
File C3-14
Updated December, 2009
pdf format
(short form - 12 periods)
(long form)
teaching activity
A cash flow
statement is one of the most important financial statements for a
project or business. The statement can be as simple as a one page
analysis or may involve several schedules that feed information into a
central statement.
A cash flow
statement is a listing of the flows of cash into and out of the business
or project. Think of it as your checking account at the bank. Deposits
are the cash inflow and withdrawals (checks) are the cash outflows. The
balance in your checking account is your net cash flow at a specific
point in time.
A cash flow statement is a listing of cash flows that occurred during the past accounting period. A projection of future flows of cash is called a cash flow budget. You can think of a cash flow budget as a projection of the future deposits and withdrawals to your checking account.
A cash flow
statement is not only concerned with the amount of the cash flows but
also the timing of the flows. Many cash flows are constructed with
multiple time periods. For example, it may list monthly cash inflows and
outflows over a year&s time.
It not only projects the cash balance
remaining at the end of the year but also the cash balance for each
Working capital
an important part of a cash flow analysis. It is defined as the
amount of money needed to facilitate business operations and
transactions, and is calculated as current assets (cash or near cash
assets) less current liabilities (liabilities due during the upcoming
accounting period). Computing the amount of working capital gives you a
quick analysis of the liquidity of the business over the future
accounting period. If working capital appears to be sufficient,
developing a cash flow budget may be not critical. But if working
capital appears to be insufficient, a cash flow budget may highlight
liquidity problems that may occur during the coming year.
Most statements are
constructed so that you can identify each individual inflow or outflow item
with a place for a description of the item. Statements like Decision Tool&&provide flexible
tools for simple cash flow projections. A more comprehensive tool for a&&(Decision Tool) is also available. A
more in-depth discussion of creating a cash flow budget is&.
Some cash flow budgets
are constructed so that you can monitor the accuracy of your projections. These
budgets allow you may make monthly cash flow&projections&for
the coming year and also enter&actual&inflows and outflows as
you progress through the year. This will allow you to compare your projections
to your actual cash flows and make adjustments to the projections for the
remainder of the year.
Reasons for Creating a Cash Flow Budget
Think of cash as
the ingredient that makes the business operate smoothly just as grease
is the ingredient that makes a machine function smoothly. Without
adequate cash a business cannot function because many of the
transactions require cash to complete them.
By creating a
cash flow budget you can project your sources and applications of funds
for the upcoming time periods. You will identify any cash deficit
periods in advance so you can take corrective actions now to alleviate
the deficit. This may involve shifting the timing of certain
transactions. It may also determine when money will be borrowed. If
borrowing is involved, it will also determine the amount of cash that
needs to be borrowed.
Periods of
excess cash can also be identified. This information can be used to
direct excess cash into interest bearing assets where additional revenue
can be generated or to scheduled loan payments.
Cash Flow is not Profitability
People often
mistakenly believe that a cash flow statement will show the
profitability of a business or project. Although closely related, cash
flow and profitability are different. A cash flow statement lists cash
inflows and cash outflows while the income statement lists income and
expenses. A cash flow statement shows liquidity while an income statement shows profitability.
Many income
items are also cash inflows. The sales of crops and livestock are
usually both income and cash inflows. The timing is also usually the
same as long as a check is received and deposited in your account at the
time of the sale. Many expense items are also cash outflow items. The
purchase of livestock feed (cash method of accounting) is both an
expense and a cash outflow item. The timing is also the same if a check
is written at the time of purchase.
However, there
are many cash items that are not income and expense items, and vice
versa. For example, the purchase of a tractor is a cash outflow if you
pay cash at the time of purchase as shown in the example in Table 1. If
money is borrowed for the purchase using a term loan, the down payment
is a cash outflow at the time of purchase and the annual principal and
interest payments are cash outflows each year as shown in Table 2.
The tractor is a
capital asset and has a life of more than one year.
It is included as
an expense item in an income statement by the amount it declines in
value due to wear and obsolescence. This is called &depreciation&. The
cost of depreciation is listed every year. In the tables below a $70,000
tractor is depreciated over seven years at the rate of $10,000 per
Depreciation
calculated for income tax purposes can be used. However, to more
accurately calculate net income, a realistic depreciation amount should
be used to approximate the actual decline in the value of the machine
during the year.
In Table 2,
where the purchase is financed, the amount of interest paid on the loan
is included as an expense, along with depreciation, because interest is
the cost of borrowing money. However, principal payments are not an
expense but merely a cash transfer between you and your lender.
Other Financial Statements
A cash flow
statement is only one of several financial statements that can be used
to measure the financial strength of a business. Other common statements
include the balance sheet or
and the , although there are several other statements that may be included.
These statements
fit together to form a comprehensive financial picture of the business.
The balance sheet or net worth statement shows the solvency of the
business at a specific point in time. Statements are often prepared at
the beginning and ending of the accounting period (i.e. January 1). The
statement records the assets of the business and their value and the
liabilities or financial claims against the business, i.e. debts. The
amount by which assets exceed liabilities is the &net worth& of the
business. The net worth reflects the current value of investment in the
business by the owners.
The income
statement is a dynamic statement that records income and expenses over
the accounting period. The net income (loss) for the period increases
(decreases) the net worth of the business (as shown in the ending
balance sheet versus the beginning balance sheet).
A Complete set of
(Decision Tool),
including the beginning and ending net worth statements, the income
statement, the cash flow statement, the statement of owner equity and
the financial performance measures is available to do a comprehensive
financial analysis of your business.
To help you assess the
financial health of your business,&&allows you to give your business a
check-up and&helps you to understand what these
performance measures mean for your business.
, retired extension value added agriculture specialist,
Ag Decision Maker, Iowa State University Extension and Outreach, Department of Economics,
, 641-732-5574
Copyright & Iowa State University Extension.
All rights reserved. |本文标签: &
在ECC6.0后有几种方法可以实现现金流量表，在这里跟大家分享一下。
方法一：启用Fund Management
Fund Management下的Commitment Itmes Management，即要在CoCd下激活CashManagement，对应所有总帐科目都要创建Commitment Item，在做Transaction时，FM会对任何和现金流相关的业务做记录，这样既可以反映实际现金流量，也可以做现金流量预测，比如对Vendor的付款承诺或来自于Customer的收款承诺。
　　　当然，这对做直接法的CashFlow还是很方便的。（毕竟间接法较直接法好做些当然，如果不上FM承诺事项管理，有一种笨办法，不过还算有效。在凭证Line Item上有一个字段叫做Reason code，这个字段中的赋值是可以在IMG中自定义的，基本可以依据直接法的现金流入、流出的分类创建Reason code.每次入凭证时，对于现金、银行科目，将此字段设为必输字段。之后，可以用总帐的Drill-Down Report或ABAP做报告。此法增加了较多工作量，但可行。
　　　我们用的是比较笨的方法，在做每一个现金（广义）的分录时，根据本公司管理的现金流量表项目在每个Item做上相应的标记，然后运行一个汇总程序，编制出管理要求的现金流量表，同时还可以调整为中方现金流量表。随时可以查看现金流量情况。
　　　直接法通过分析凭证的承诺项目来取数，SAP为该项功能定义了一个逻辑数据库C1F. 本程序开始部分的逻辑数据库取数部分是SAP的标准程序，其功能是将与现金流量相关的数据装入内部表G_T_FMMP， 这部分程序禁止修改。
　　　直接法a、装入现金流量表定义参数（FORM fill_item_direct）
　　　该子程序将现金流量表项和其对应的承诺项目装入内部表INT_CASHFLOW.
b、装入与现金流量相关的数据这部分是逻辑数据库装入，属于SAP标准程序，数据关系比较复杂，建议不要做任何改动。
　　　c、计算现金流量计算的基本思路是对表G_T_FMMP进行循环，查找其中每条记录的承诺项目属于INT_CASHFLOW的表项后，把其金额累计到相应表项。
　　　5.对现金类科目选择allocation字段为必须输入，并且只能输入数字，将这些数字与现金流量表对应起来，最后汇总这个字段就可以了。
　　　优点是，如果你输入错误，可以随时更改。也就是说，你可以调节一下cash flow注意：对于没上TR实现现金流程表，最好用assignment栏位，第一可以直接输入相关原因代码，而且reason code 操作麻烦，在做substitution时不能实现更改字段内容，而assignment可以写出user exit实现。但reason code 可以实现选择代码。
方法二：应用合并事务
¨系统配置
（1）后台配置
T-code：OBC4
在字段状态组中把合并事务选择成必输项目。在通过ABAP或者RP取得BSEG-RMVCT下的数值得到现金流量表。
其他请参照方法四。非常雷同。
方法三：应用原因代码
原因代码使用方法和应用合并事务基本相同，所以不再详细介绍。请参照方法二即可。另外Reason Code是4.7版本一下的用法，在ECC5.0以上基本不再使用。
方法四：应用Coding Block
思考？什么是Coding Block？请参照SAP方丈-FI-Coding Block详解
后台配置：
（1）增加Coding Block
同时，我们定制的Coding Block add to FAGLFLEXT table.
大功高成，去看看你的现金流量表吧。
讲来讲去，老方还是喜欢老外的Cash Flow Sheet，不是我崇洋，我们要吸取精华。附件为老外的表格。呵呵，如果你喜欢方丈，请拍拍手，寻我，BAIDU ‘SAP方丈’即可。
08:52 SAP方丈 阅读(9570)
本博客所有内容，若无特殊声明，皆为博主原创作品，未经博主授权，任何人不得复制、转载、摘编等任何方式进行使用和传播。作者该类其他博文：
&re: SAP方丈-FI-现金流量表的几种实现方式
又长见识了。
通过你文章学了很多知识，谢谢。
希望你继续为我们广大的SAP人员提供更多的好文章。
&re: SAP方丈-FI-现金流量表的几种实现方式
能讲讲ABAP写现金流表吗？
&re: SAP方丈-FI-现金流量表的几种实现方式
附件在哪？
&re: SAP方丈-FI-现金流量表的几种实现方式
很好很强大。
&re: SAP方丈-FI-现金流量表的几种实现方式
拜读中，有帮助。。。。
&re: SAP方丈-FI-现金流量表的几种实现方式
for&your&article.&can&be&forever&commented&with&‘between&shut&and&shot&‘.understand?&
&re: SAP方丈-FI-现金流量表的几种实现方式
--DCLPETER
正好遇到这个问题
--huyiming004
附件在哪里看啊？
--jingling521
怎么能看到附近
--zhaijing
哪里可以买到这本书啊&&我找了好久都没有找到&&真的好想买到&&求大神回复
如何下载附件
--walterzxxSpecialist Channels
What is a cash flow problem and what do they happen so often in all types of business?
A cash flow problem can be defined as:
When a business does not have enough cash to be able to pay its liabilities
The main causes of cash flow problems are:
Low profits or (worse) losses
Over-investment in capacity
Too much stock
Allowing customers too much credit
Overtrading
Unexpected changes
Seasonal demand
Let's look at these in a little more detail.
Why It Causes a Cash Flow Problem
Low profits or (worse) losses
The profit a business makes from trading is the most important source of cash.
There is a direct link between low profits or losses and cash flow problems
Remember - most loss-making businesses eventually run out of cash
Over-investment in capacity
This happens when a business spends too much on fixed assets
Problem is made worse if short-term finance is used (e.g. bank overdraft)
Fixed assets are hard to turn back into cash in the short-run
Too much stock
Holding too much stock ties up cash
+ Increased risk that stocks become obsolete
On the other hand...
There needs to be enough stock to meet demand
Bulk buying may mean lower purchase prices
Allowing customers too much credit
Customers who buy on credit are called "trade debtors"
Offer credit = good way of building sales
On the other hand...
Late payment is a common problem – and slow-paying customers often put a strain on cash flow
Worse still, the debt may go "bad" – i.e. it is not paid at all
Overtrading
Occurs where a business expands too quickly, putting pressure on short-term finance
Classic example – retail chains
Keen to open new outlets
Have to pay rent in advance, pay for shop-fitting, pay for stocks
Large outlay before sales begin in new store
Businesses that rely on long-term contracts are also at high risk of overtrading
Unexpected changes
These are items or events that are not included in the cash flow forecast – they are unforeseen. Examples include:
Internal change (e.g. machinery breakdown, loss of key staff)
External change (e.g. economic downturn, accidents, change in legislation that requires a business to invest in new facilities)
Seasonal demand
Where there are predictable changes in demand & cash flow
Production or purchasing usually in advance of seasonal peak in demand = cash outflows before inflows
This can be managed – cash flow forecast should allow for seasonal changes
Campion School, Leamington Spa
Jim RileyBefore founding tutor2u with twin brother Geoff, Jim was a director at Thomson Travel Group Plc and a Corporate Finance and Strategy specialist at PwC.
Jim is graduate Economist, a Fellow of the ICAEW and has a MBA (Distinction) from Bradford Management School.
Study notes
12th June 2016
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