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