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
Purpose: The purpose of this lesson is to enter a single
cash flow.
Windows:
Manual Cash Flow – Single
- Open the Manual Cash Flow – Single
window.
- Create a new record (F5).
- Enter values in the Source and Cash Flow Type fields or
select them from the List of Values (F8).
- Enter values in the Cash Flow Date, Amount, and
Currency fields.
Note: Outgoing payments are entered with a minus sign
preceding the amount.
- In the In/Out field, click the option applicable to the payment.
- Select the status, using the List of Values (F8).
- 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.
- List of Values in the
Counterpart Type box.
- Save the changes (F12).
Note: The system automatically uses today's date as the
entry date.
Purpose: The purpose of this lesson is to enter a
repetitive cash flow.
Windows:
Manual Cash Flow – Repetitive
- Open the
Manual Cash Flow – Repetitive
window.
- Create a new record (F5).
- Enter values in the Source and Cash Flow Type fields or
select them from the List of Values (F8).
- In the First Payment Date field, enter the date of the first
payment.
- In the Number of Payments field, enter the number of times the
payment is to be repeated.
- Select Frequency and a Frequency Type from the list.
- Enter the recurring cash amount in the Amount field.
Note: Outgoing payments are entered with a minus sign
preceding the amount.
- Enter the currency and choose whether the payment is incoming or outgoing.
Select the option required in the In/Out field.
- 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.
- Enter information in the Text and Counterpart fields, and select
either External or Internal.
- Save the changes (F12).
Note: The current date is set as the entry date by the
system.
Purpose: The purpose of this lesson is to enter currency
forward contracts.
Windows:
Currency Forward Contracts
- Open the
Currency Forward Contracts
window.
- Create a new record (F5).
- Accept the suggested value for the cash flow date and enter an amount of
5,000
for the contract.
- Select Out in the In/Out field.
- 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.
- Select a supplier from the List of Values (F8) in the Counterpart
field.
- Save the changes (F12).
Purpose: The purpose of this lesson is to enter manual
cash balance.
Windows:
Manual Cash Balance
- Open the
Manual Cash Balance
window.
- Create a new record (F5).
- Enter the payment source in the Source field or select one
from the List of Values (F8).
- Enter values in the Bank Account.
- Enter an amount and a currency.
- Enter values in the Source field or
select them from the List of Values (F8).
- Save the changes (F12).
Purpose: The purpose of this lesson is to enter a new
analysis.
Windows:
Cash Flow Analyses
- Open the Cash Flow Analyses window.
- Create a new record (F5).
- Enter an analysis ID (e.g., your initials) and a description of the analysis.
- Save your entries.
- 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.
- Select a line, and then right-click and click Order. The
Update Analyze in Background dialog box will appear.
- Click No for the Execute in Background option.
- Click OK.
Note: The cash flows will now be refreshed for the selected
source. The system sets the current date as the generation date.
Purpose: The purpose of this lesson is to create cash flow
exposure.
Windows:
Cash Flow Exposure
- Open the Cash Flow Exposure
window.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.