Cash Flow Analyzer FAQ

What is the Cash Flow Analyzer app used for?

The Cash Flow Analyzer app provides a comprehensive overview of your company’s cash flow status. It allows you to analyze your current cash position, generate short-term and long-term liquidity forecasts, and review actual cash flow reports. This helps you understand your financial health and make informed decisions about cash management.

What settings need to be defined before using the app?

Before using the app, it’s important to configure the settings in the user settings section under “More” in the MI area. These settings include:

• Currency Derivation: Determine how the currency is derived, for example, based on the transaction currency.
• Balance View: Choose the default view for displaying balances.
• Non-Working Day Handling: Decide how amounts from non-working days are handled, for example, shifting them to the next working day.

How do I view my current cash position?

To view your current cash position, select the “Cash Position” variant and choose the desired time period (e.g., D7 for the next 7 days). This will display today’s cash position and a short-term cash forecast for the following days. Expanding the table shows the opening balance, cash inflows and outflows for the day, and the closing balance aggregated to the next day’s opening balance.

What is the difference between the “Cash Position” and “Liquidity Forecast” variants?

The “Cash Position” variant focuses on your current cash status and short-term forecast, showing actual posted and due cash flows. In contrast, the “Liquidity Forecast” variant provides a medium-term and long-term outlook based on forecasted cash flows, helping you anticipate future liquidity needs.

How can I view cash flow information from a cash pooling perspective?

To view cash flow data in the context of a cash pool, select the “Bank Account Group” view. Choose the desired bank account group ID, defined in the “Manage Bank Accounts” app. This will display aggregated amounts for each bank within the pool, allowing you to monitor the overall liquidity position of the group.

How can I analyze cash flow based on liquidity items?

To analyze cash flow from a liquidity item perspective, select the “Liquidity Item Hierarchy” view. Choose the desired liquidity item hierarchy ID, defined in the “Liquidity Item Hierarchy” app, and specify the display currency. This view presents aggregated amounts at different levels of the hierarchy, providing insights into specific cash flow categories.

Can I drill down to see the details of individual cash flow items?

Yes, you can navigate to the “Check Cash Flow Items” app to view details of the original documents behind the cash flow data. This allows you to track individual line items and gain a deeper understanding of the transactions contributing to your cash flow.

What actions can I take based on the insights from the Cash Flow Analyzer?

The app helps you identify potential cash surpluses or deficits. If you discover a deficit, you can navigate to the “Make Bank Transfer” app to initiate necessary transfers. Alternatively, if you find a surplus, you can explore investment opportunities or other strategies to optimize your cash management.

---

Cash Flow Analyzer App Study Guide

Short Answer Questions

1. What are the three main areas of analysis offered by the Cash Flow Analyzer app?
2. Where and how do you configure settings like currency derivation and balance view defaults?
3. Describe the difference between the information displayed in the “Cash Position” variant and the “Liquidity Forecast” variant.
4. How does the app handle cash flows that occur on non-working days?
5. What is the purpose of the “Bank Account Group” view in the “Actual Cash Flow” variant?
6. How can you identify and address potential cash deficits or surpluses within a specific bank account?
7. What functionality does the “Check Cash Flow Items” app provide?
8. How do you access the “Liquidity Item Hierarchy” view, and what information does it present?
9. Explain the relationship between the Cash Flow Analyzer app and the “Manage Bank Accounts” app.
10. What is the benefit of using the “Display Currency” option in the “Liquidity Item Hierarchy” view?

Short Answer Key

1. The app allows you to analyze your cash position, liquidity forecast, and actual cash flows.
2. Settings are defined in the user settings under “More” in the “MI” area. You can specify options such as currency derivation based on transaction currency and setting the balance view as the default.
3. The “Cash Position” variant shows the current day’s cash position and a short-term forecast for the next six days, focusing on actual cash flows. The “Liquidity Forecast” variant offers a medium to long-term forecast for a specific period, displaying predicted cash inflows and outflows.
4. Amounts from non-working days are automatically shifted to the next working day.
5. This view provides an aggregated perspective of cash flows within a defined bank account group, allowing you to analyze the overall position of the cash pool.
6. By viewing the aggregated amounts for each bank and the detailed amounts for individual accounts within the cash pool, you can identify deficits or surpluses. The app allows navigation to the “Make Bank Transfer” app to execute necessary transfers.
7. This app provides detailed information on the original documents associated with cash flow items, enabling users to track document line item details.
8. You access this view by selecting a “Liquidity Item Hierarchy ID” (defined in the corresponding app) and choosing a display currency. The view then presents aggregated amounts across different levels of the chosen liquidity item hierarchy.
9. The Cash Flow Analyzer app utilizes bank account groups defined within the “Manage Bank Accounts” app. This integration allows users to analyze cash flows based on predefined bank account structures.
10. This option enables users to view the report in a currency other than the original transaction currency, facilitating analysis and comparison across different currencies.

Essay Questions

1. Explain the importance of analyzing cash flow for a business and how the Cash Flow Analyzer app can assist in this process.
2. Compare and contrast the “Cash Position,” “Liquidity Forecast,” and “Actual Cash Flow” variants in the app. Discuss the specific use cases for each variant and the insights they provide.
3. Describe the concept of a cash pool and how the Cash Flow Analyzer app facilitates the management of a cash pool. Explain the benefits of using a cash pool and the role of bank account groups in this context.
4. Discuss the integration between the Cash Flow Analyzer app and other related apps like “Make Bank Transfer” and “Check Cash Flow Items.” Explain how this integration contributes to a comprehensive cash flow management system.
5. Analyze the importance of liquidity item hierarchies in cash flow analysis. Describe how the Cash Flow Analyzer app utilizes this concept to provide detailed insights into cash flow patterns and trends.

Glossary of Key Terms

Cash Flow: The movement of cash into and out of a business.

Liquidity: The ability of a company to meet its short-term financial obligations.

Cash Position: The amount of cash a company has on hand at a specific point in time.

Liquidity Forecast: A projection of a company’s future cash inflows and outflows.

Actual Cash Flow: A record of the actual cash inflows and outflows that have occurred during a specific period.

Cash Pool: A centralized account structure where funds from multiple bank accounts are consolidated to optimize liquidity management.

Bank Account Group: A grouping of bank accounts defined within the “Manage Bank Accounts” app, used for analysis and reporting in the Cash Flow Analyzer app.

Liquidity Item Hierarchy: A structured classification system for categorizing and analyzing cash flow items based on their nature and purpose.

Display Currency: The currency in which cash flow data is presented in the app.

Transaction Currency: The original currency of a financial transaction.

Cash Flow Analyzer App: Functionality and Features

I. Introduction: Overview of the Cash Flow Analyzer App

• This section introduces the app’s core functionalities: analyzing cash position, generating liquidity forecasts, and examining actual cash flows. It also emphasizes the importance of user settings configuration for personalized use.

II. Initial Setup and Cash Position Analysis

• This section outlines the steps for setting up the app, including defining currency settings, balance view preferences, and handling amounts from non-working days. It then guides users through analyzing the current day’s cash position and short-term forecast, highlighting the components of the cash position table.

III. Exploring Different Variants: Liquidity Forecast and Actual Cash Flow

• This section demonstrates the app’s versatility by showcasing the liquidity forecast and actual cash flow variants. It explains the differences in these variants, focusing on the time horizon and nature of cash flows (forecasted vs. actual) presented in each.

IV. Analyzing Cash Flow in a Cash Pooling Perspective

• This section focuses on analyzing cash flows within a cash pooling structure. It explains how to select a bank account group and view aggregated amounts for the entire pool as well as individual bank accounts. It also highlights the navigation options to the Make Bank Transfer app and the Check Cash Flow Items app for further actions and detailed analysis.

V. Utilizing the Liquidity Item Hierarchy for Detailed Insights

• This section demonstrates the analysis of cash flows using the liquidity item hierarchy. It explains how to select a hierarchy ID and display currency to view aggregated amounts at different levels of the hierarchy. Navigation to the Check Cash Flow Items app is also highlighted for accessing detailed document information.

VI. Conclusion: Encouraging App Exploration and Real-World Application

• This section concludes by summarizing the app’s capabilities, emphasizing its ability to provide both high-level overviews and detailed insights into cash flow status. It encourages users to explore the app’s functionalities and apply them to their specific financial management needs.