Managing your cash flow is critical to ensuring that you have sufficient funds.

An increase in receivables is actually a bad thing because it results in negative cash flow, as you are aware if you are familiar with the cash flow concept. Although you’ve sold it, you haven’t yet collected the money, which is the crucial component of cash flow because you can only have an inflow of funds after you do.

You can quickly develop a sales estimate for clients and items using SAP Analytics Cloud. Using this sales prediction and accounting for each customer’s payment arrangements, net movements for cash flow may then be calculated (or group of customers). Additionally, it is also feasible to control and guide the DSO (Days Sales Outstanding and Days Payables Outstanding) in the forecast.

I would like to explain this in the following examples in SAP Anayltics Cloud.

Figure 1 shows the simplified result of a sales forecast.

Customers, regions, and products may all be the subject of a forecast. Cash flow is calculated after adding in the sales.

Figure 2 shows a view of the numbers taken over from the sales forecast.


Figure 2 also shows the payment terms of the individual customers. These can be maintained in SAP Analytics Cloud and also used for planning. This would also allow a DSO that is not desired to be adjusted in planning.


Figure 3 shows the start of the calculation for Net Balance.


In SAP Analytics Cloud, calculations can be inserted and executed by a Data Action.


Figure 4 shows the result of the Net Movement calculation.


The shift in sales to the month in which the payment will be made in accordance with each customer’s payment terms is depicted in the image by the red arrows.


At the top of the picture you can see the result of the cash flow as Net Movement.


This type of application and calculations are easy to create in SAP Analytics Cloud with standard functions.


Stay tuned and stay healthy,