Cash Flow Analysis—Key Exercises

IMPORTANT
It is extremely important that you set up and work within your own company and with your own customer and supplier to maintain your data integrity. If you work with any other objects, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data be isolated in your own company.

Main Exercise


Manual Cash Flows

Manual Cash Flow—Single

Purpose: The purpose of this lesson is to enter a single cash flow.

Windows:
Manual Cash Flow – Single

  1. Open the Manual Cash Flow – Single window.
  2. Create a new record (F5).
  3. Enter values in the Source and Cash Flow Type fields or select them from the List of Values (F8).
  4. Enter values in the Cash Flow Date, Amount, and Currency fields.

Note: Outgoing payments are entered with a minus sign preceding the amount.

  1. In the In/Out field, click the option applicable to the payment.
  2. Select the status, using the List of Values (F8).
  3. Enter text in the Text field, and then enter a counterpart and name. Select the appropriate value from the drop-down list in the Int/Ext field.
  4. List of Values in the Counterpart Type box. 
  5. Save the changes (F12).

Note: The system automatically uses today's date as the entry date.


Manual Cash Flow—Repetitive

Purpose: The purpose of this lesson is to enter a repetitive cash flow.

Windows:
Manual Cash Flow – Repetitive

  1. Open the Manual Cash Flow – Repetitive window.
  2. Create a new record (F5).
  3. Enter values in the Source and Cash Flow Type fields or select them from the List of Values (F8).
  4. In the First Payment Date field, enter the date of the first payment.
  5. In the Number of Payments field, enter the number of times the payment is to be repeated.
  6. Select Frequency and a Frequency Type from the list. 
  7. Enter the recurring cash amount in the Amount field.

Note: Outgoing payments are entered with a minus sign preceding the amount.

  1. Enter the currency and choose whether the payment is incoming or outgoing. Select the option required in the In/Out field. 
  2. In the Status field, enter a value of 1 through 5 to designate the reliability of payment. Use the List of Values (F8) for detailed information in the Status field.
  3. Enter information in the Text and Counterpart fields, and select either External or Internal.
  4. Save the changes (F12).

Note: The current date is set as the entry date by the system.


Currency Forward Contracts

Purpose: The purpose of this lesson is to enter currency forward contracts.

Windows:
Currency Forward Contracts

  1. Open the Currency Forward Contracts window.
  2. Create a new record (F5).
  3. Accept the suggested value for the cash flow date and enter an amount of 5,000 for the contract.
  4. Select Out in the In/Out field.
  5. Enter your accounting currency as the contract base currency, and then select another valid currency as the contract price currency from the List of Values (F8) as well as a spot rate.
  6. Select a supplier from the List of Values (F8) in the Counterpart field.
  7. Save the changes (F12).


Manual Cash Balance

Purpose: The purpose of this lesson is to enter manual cash balance.

Windows:
Manual Cash Balance

  1. Open the Manual Cash Balance window.
  2. Create a new record (F5).
  3. Enter the payment source in the Source field or select one from the List of Values (F8).
  4. Enter values in the Bank Account.
  5. Enter an amount and a currency. 
  6. Enter values in the Source field or select them from the List of Values (F8).
  7. Save the changes (F12).


Cash Flow Analysis

Purpose: The purpose of this lesson is to enter a new analysis.

Windows:
Cash Flow Analyses

  1. Open the Cash Flow Analyses window.
  2. Create a new record (F5).
  3. Enter an analysis ID (e.g., your initials) and a description of the analysis.
  4. Save your entries.
  5. Select the new analysis record, and then right-click and click Details.

Note: The Analyze Detail window displays the three predefined sources (customer order, payment, and purchase order) and all entered manual sources. These sources are available as a basis for analysis.

  1. Select a line, and then right-click and click Order. The Update Analyze in Background dialog box will appear.
  2. Click No for the Execute in Background option.
  3. Click OK.

Note: The cash flows will now be refreshed for the selected source. The system sets the current date as the generation date.


Cash Flow Reports

Purpose: The purpose of this lesson is to create cash flow exposure.

Windows:
Cash Flow Exposure

  1. Open the Cash Flow Exposure window.
  2. Select the analysis ID from which you want to produce a report.

Note: If the Sources field is left blank, all sources will be included.

  1. Enter the company to be analyzed (e.g., your own company).

Note: If the field is left blank, all companies in the analysis will be included.

  1. In the Date Until field, enter a future time limit for the cash flow. The suggested value is until the end of the current year.
  2. Accept the suggested value of 5 in the Max Cash Flow Status field, and leave the Cash Flow Type, Counterpart ID, and Counterpart Type fields blank. This will include all available data, since entering a value will limit the data set for the analysis.
  3. In the Time Scale field, specify the time slots according to which the cash flows will be reported. Click Week to specify that you want the cash flow to be reported per week.
  4. Enter your accounting currency.

Note: If the Currency field is left blank, all currencies in the analysis are included. Choices can be made from the List of Values. If Amount in Base Currency is selected, amounts in base currency are reported. This is recommended if the Currency field is left blank and more than one currency can be included in the analysis.

  1. Enter the desired Currency Rate Type and Company for Currency Rate Type values or select them from the List of Values. This will determine from which company and currency rate type rates will be retrieved.
  2. Click Print to print a report or Details to view cash flow exposure details. Try both alternatives.

Note: The Details option is meant to export to an external analysis tool, e.g., Microsoft Excel.