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Direct Method- Cash Flow Statement

Hi Friends,

I would like to develop a cash flow Statement- Direct method. I am aware; this is a cash basis report on three types of financial activities: operating activities, investing activities, and financing activities, with all related items will be captured under each Acitivity.

I am considering the following aspects (in brief) to develop this Statement:

1. Cash flows From Operating Activities: Includes cash received from Customer, Receipts from Government, Payments to suppliers, Payments to vendors.etc.

2. CASH FLOWS FROM INVESTING ACTIVITIES: Includes Proceeds from matured short-term Investments, long-term Investments, Dividends, Interest Received . Etc

3. CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term liabilities, Principal payments of long-term liabilities, obligations etc.

Net cash used in financing activities- (Gain)/loss on foreign exchange = Net decrease in cash and cash equivalents

I got two doubts in achieving this : ( I need to have consolidated cashflow report for r/3 & Non-r/3)

1.Is this correct method to use the Cash Management u2013Treasury Management (TM), to get the cash flow report for individual r/3 Companies, which is used to monitor cash position/payment flows and Liquidity Forecast, where I can configure Planning level ( BSEG-FDLEV) for G/l Accounts ( e.g. related to Bank / cash accounts )/Planning Group ( BSEG-FDGRP) For Subledger accounts ( e.g. Vendor / Customer accounts )

2.Is this right method to capture the activity details like above 1,2,3, like FSI + TType for each of activities, for non r/3 Companies?

Any suggestions on the above will be highly appreciated.

Regards

CSM Reddy

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