Long Business Systems, Inc. (LBSi)

Management Software Solutions

We help businesses manage for success

Cleveland – Columbus – Cincinnati - Pittsburgh

Cash Flow Reporting

Agenda:

Why is it important?

Authorizations & setup

Elements of Cash Flow Report

Recurring Postings & Cash Flow Report

Cash Flow Reports

Why Cash Flow Planning? Simple Goal: have enough cash on hand when needed

How?

Implement good cash flow techniques to ensure you can always meet your obligations

Start by using the SAP Business One Cash Flow reporting tool

Keep it simple to start with

Add more functionality as you go

Know your current financial ratios and how they impact cash flow

Define where they are now and monitor

Know your liquidity ratios Cash Flow planning is linked to Liquidity

Liquid assets, i.e. cash are needed for day to day operations

Liquidity ratios measure company’s ability to meet its obligations

Quick Ratio: $$ of liquid assets available to cover $$ of current assets

Quick Ratio = Cash + Accounts Receivable Total Current Assets

Current Ratio: Measures ability to meet short term debts

Current Ratio = Total Current Assets Total Current Liabilities

Authorizations: Set-up

Review user authorizations

Go to: Administration > Initial Settings > Authorizations> General Authorizations

Authorizations: Reporting

Review user authorizations

Go to: Administration > Initial Settings > Authorizations> General Authorizations

Set-up: General Settings

Define settings for assigning cash flow items to transactions

Go to: Administration > System Initialization > General Settings

Elements of Cash Flow Report

Cash Flow Relevant Accounts Only “active” accounts at the asset level can be Cash Flow Relevant

Use “Category” to classify G/L accounts

Set-up: Cash Flow Line Items

Define cash flow line items assigned to transactions

classifications for Statement of Cash Flow Report

Go to: Administration> Setup > Financials > Cash Flow Line Items .

Recurring Postings & Cash Flow Create recurring postings to capture budgeted expenses

payroll, rents, lease payments

Assigning Cash Flow

Assign cash flow items in Payment Means, Deposit

or Payment Wizard windows.

Cash Flow Reference Report

Use this report to review cash flow transactions

Drill down and modify and/or assign transactions as needed

Go to: Financials > Financial Reports > Financial > Cash Flow Reference Report

Statement of Cash Flow Report Review classifications, compare & adjust cash flow items

Cash Flow Report

View cash relevant transactions by Security Level and Due Date

Include Recurring Postings or Journal Vouchers

Add any projected future cash transactions, i.e. asset purchases, etc..

The smaller the Date selection, the more relevant the data

Cash Flow Report Reports by “Security Level”

Shows running projected cash flow balance

Thank you for taking time to participate in the SAP Business One User Group Meeting.

Please take a few minutes to respond to our survey and provide us with feedback and suggestions going forward.

o We are always looking for new clients to work with. And we would like to find more clients and partners like you – companies that are engaged, smart, and focused on their future.

o Can you help us out by referring LBSi to someone who could benefit from our services?

Next Meetings:

o Tuesday, Mar. 13, 2012

o What’s New

o Tuesday, Apr. 10, 2012

o TBA – Give us your ideas

Long Business Systems, Inc. (LBSi)

Cleveland – Columbus – Cincinnati –Pittsburgh

Contact Information:

Vicki Smith

Senior Consultant

email: vicki@lbsi.com

Phone: 440-846-8500 ext 22

www.lbsi.com