SAP Academy Material

SAP ACADEMY
Siemens Pakistan Engineering Co Limited
Financial Accounting Manual
Part 2

Prepared By:
Zeeshan R. Haryani
ACA, ACCA(f),
Certified SAP Consultant & Trainer
for FI/CO/BW
[email protected]

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Uni Fundamentals
t1

A. Customers/Vendors Accounts

1. A complete Customer / Vendor account has 3 segments

a. Client level data containing general information
b. company code specific data
c. Sales Area / Purchasing Orginazation Segment

2. A Sales area is a combination of

a. sales organization (responsible for sales and distribution of goods and
services)
b. distribution channel (means by which customer receives a product)
c. division (represents product line)

3. To avoid duplication of vendor/customer account, we use

a. Match code before creating a new account
b. Activate automatic duplication check

4. Some important fields in Customer/Vendor accounts are

a. Search Term (eg. Abbreviation)
b. Corporate Group
c. Clerk/accounting

5. International Bank Account Number (IBAN) is an internationally recognized, unique

identification for a certain bank account to facilitate handling of international
payment transactions

6. IBAN consists of maximum 34 alphanumeric character

7. Customer / Vendor account group controls:

a. Number Range
b. Field Statu of account field
c. One time account

8. Customer / Vendor account group has to be mentioned before you can create a
master record
whereas at the time of creation of GL, first number is assigned than Account group
is defiend
in chart of account segment because of
a. GL account number is always external number, where as Customer /Vendor
account groups
controls whether the number assignment is internal or external

9. If internal number range has been assigned, the system always assign the next
number available
to the new vendor/customer account.

10. In contrast to other master record, one time account master record does not contain
any information
like bank details.

11. Field status can be maintained at

a. Account group specific field status
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b. transaction specific field status

c. company code specific field status

12. For dual control principle, first you have to define the fields in the IMG as sensitive.
In that case, the other
person needs to confirm the changess made in the master record of
vendor/customer

13. If a customer is also a vendor or vice versa, the payment and the dunning program
can clear open item
against each others.

14. To clear open items, we have to do following

a. Vendor account must be entered in customer account or vice versa
b. Each company code can decide separately whether it wants to clear open
items between them.

15. Alternative Payer/Payee means to get/pay not from/to original customer/vendor, but
from/to alternative
Payer/payee

16. Alternative payer/payee can be defined at

a. at document level
b. at company code level
c. at client level

17. Incase of Head Office/Branch relation, all the posting made in Branch are
automatically transferred to the
Head Office Account

B Simple Documents in R/3 FI

1. The most important fields are in the foreground on a tab pages.

Uni Automatic Payments

t2
A. Payment Process Overview

1. SAP R/3 allows to automatically

a. select open invoices to be paid or collected
b. post payment documents
c. print payment media, use data medium exchange or generate EDI

2. The settings for payment program are defined in 3 places

a. In the master record of the vendor
b. at the time of posting invoice - Item level
c. in the customizing for payment program

3. if the data in the master data and coument is different, the data in the document
takes precedence over the
data in the master record.

4. The automatic payment process consists of 4 steps (User side)

a. Parameters
b. Start Proposal Run and Edit it
c. Start Payment Program

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d. Schedule Print

B. Payment Program Configuration

1. There are six configuration areas for the payment program

a. All company codes
b. Paying company codes
c. Payment method per country
d. Payment method per company code
e. Bank selection
f. House Banks

2. The first three areas only requirement minimum changes to execute automatic
payment program.

3. For all company codes, we configure

a. Inter company payment relationships
b. company codes that process payments
c. cash discount
d. tolerance days for payments
e. Customer/Vendor transactions to be processed.

4. If company A is making payment on behalf of another company B, than B is called

sending company code.

5. The paying company code is the company code that is responsible for
processing the outgoing payments. This company code records the bank
postings (A). The sending company code records the subledger postings
(B). Both companies balance by automatically generating cross company
postings.

6. If vendor/customer Special GL transaction are to be paid, it is defined here.

7. For each company code, we configure

a. Minimum amount for incoming / outgoing payments
b. Forms for payment advice and EDI
c. Bill of exchange specifications

8. In payment method, per country level, we configure

a. Payment Methods
b. Master record requirements (invoice not to be paid, unless requirement is
met)
c. Document types
d. Name of the print program

9. In payment method, company code leve, we configure

a. minimum/maximum check amount to be processed
b. foregin business partner allowed
c. Grouping options (Single Payment/Payment per due date)
d. Bank optimization
e. Postal code optimization
f. Forms for payment media

10. In the bank selection configuration, we define

a. Ranking of Bank (which should be considered first) - House Bank, Currency,
Bill of Exchange account

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b. Amount (available funds)

c. Accounts (Bank Clearing Account)
d. Expenses / Charges
e. Value Date

11. Amount field is not updated automaticall after each payment run.

12. Value date represents the probable number of days until a debit / credit is entered in the
bank account.

13. Value date = payment run posting date + days until value date

14. where bank charges have been defined, the system automatically substract the bank
charges from incoming
payment and adds the charges in case of outgoing payment.

C Running the Payment Program

1. Every payment program run is identified by 2 fields

a. Run Date
b. Identification

2. The run date is recommended as the actual date when the program is executed.

3. The identification field is used to differentiate between program runs that have the same
run date.

4. In the parameters, the company code in a payment run must be in the same country.

5. In the proposal run, the program selcts documents and accounts with items that are
pending for payments

6. Once the proposal run is completed, the system generate 2 reports

a. The payment proposal list
b. exception list

7. The proposal list hows the business partner and the amounts to be paid/received.

8. Possible reasons for the items appearing in exception list are:

a. Invoice is blocked
b. Invalid data in master record
c. invalid payment method
d. invalid house bank
e. Payment amount is less than the minmum amount specified for payment
f. not enough money in the house bank per configuration
g. Debit balance

9. Payment items can be temporarily blocked in the proposal by manually by assigning a

payment block

10. The documents included in the payment run have been locked against any other
posting like paid manually
or in another payment run.

11. The payment run uses the data from the payment proposal to
a. post the payment documents to GL and clear paid open items (in

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vendor/customer)
b. Post related postings for taxes, discount and exchnage rate differences
c. select the payments that can be paid with EDI
d. supply the print program with necessary data

12. The document type for payment documents is defined in the country specific
specifications for the payment
method.

13. Documents generated through payment run contain data and identification number of
the RUN in
the document header text.

14. The print run starts the print program which does the following
a. Trnasfer the payment media, advice notes and payment summary to print
administration
b. Transfer the DME payment data to DME administration
c. Create R/3 intermediate documents for slected payments to forward to EDI
subsystem.

15. A print program is assigned to each payment method for each country

16. To run the print program, system needs atleast one variant for each print program

17. If several variants are assigned to a print program, the system runs the program once
for each variant

18. In the configuration settings, for the payment program, you have to assign payment
medium forms either
a. to the paying company code
b. to each payment method for each company code.

19. With data medium exchange (DME), a file is created that contains all the relevant
payment information in
accordance with the banking rules of the country in question.

20. The DME file can be stored in SAP TemSe (Temporary Sequential File) within SAP or in
the file system on PC.

21. The program for printing checks is RFFOXX_Y where XX usually stand for country and
Y contains additional
definition for the form.

22. In the payment Method country configuration, print program is defined for each payment
method whereas
SAPscript form to be used is specified in the FORM data section

23. The print program program does the following:

a. Assigns check number to payment documents
b. updates the payment documents and original invoice doucments with the
check information
c. prints checks and accompying documents

24. In SAP checks are managed in batches or lot and are used for both manual and
automatic payments.

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25. Each lot has a defined number range and is assigned to one house bank.

26. The parameters specify the accouns and documents that are to be included in the
payment run

27. The payment program needs the next posting date to determine whether an open item
has to be paid now or
in the next payment run.

28. Company codes from different countries can not be processed in the same payment
run.

D Payment Medium Workbench (PMW)

1. The advantages of PMW are

a. Uniformity
b. format can be changed easily
c. new formats can be created without programmer

2. The note to payee can be freely defined in customization of PMW

3. Six steps for conversion to PMW include

a. Changeover to PMW
b. Define PMW Format
c. Fill note to payee according to origin
d. Enter PMW form accompanying sheet
e. Remove payment media form
f. Create and assign selection variants

4. When the payment media are created for payment with PMW, a program is launched
which carries out
pre-services which process the data for PMW
a. payments are sorted according to PMW format
b. Payment groups are created based on the level of granularity
c. The note to payee is formed

5. The granularity is specified in the definition of the payment medium format and
determines how the payment
media are to be output separately in payment groups.

6. A PMW payment method is always assigned a PMW format and a content template for
the note to payee.

7. Every PMW format has up to 3 types of text fields for reference information
a. Invoice Information
b. Internal reference
c. External reference

E Debit Balance Check

1. The debit balance check is carried out after a payment proposal has been created

F Automating the Payment Process

1. Schedule Manager can be used to automate periodically recurring activities

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2. The task list is the key element in the Schedule Manager

Uni Automatic Dunning

t3
A. Payment Process Overview

1. During the dunning run, the system chooses the accounts and checks them for item that
are overdue.

2. The Dunning proposal can be editied, deleted or recreated.

4. There are four steps to execute automatic dunning program

a. Maintain Parameter
b. Proposal Run
c. Editing the Dunning Proposal
d. Printing Dunning Notices

5. Customers without dunning procedure in the master record cannot be dunned.

6. It is possible to dun vendor as well as customers

7. If dunning areas are not used, dunning is performed at the company code level.

B Dunning Program Configuration

1. The dunning procedure controls how dunning is carried out.

2. The dunning program settings are divided into following categories

a. Dunning Procedures
b. Dunning Level
c. Expenses / Charges
d. Minimum Amount
e. Dunning texts
f. Environment

3. In dunning procedure, we maintain following

a. Dunning Key
b. Description of Key
c. Dunning Interval in days
d. Minimum days in arrears(accounts) after which notice is to be sent
e. Line Item Grace Period
f. Interest Calculation indicator

4. In dunning level, we maintain

a. minumum no. of days
b. interest calculation indicator
c. print parameter
d. Issue legal notice although no Further account movement

5. In expense/chages, we maintain dunning charges depending on the dunning level which

can be
a. fixed amount or %age
b. minimum level of amount on which charges to be calculated

6. In minimum amount level, we maintain

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a. Minimum amount / percentage of overdue items to reach a dunning level

b. Minimum amount required before interest is calculated at each level

7. In dunning texts, we maintain name of the form that will be used at each dunning level.

8. In Environment, we maintain information with regard to

a. Company Code Data
b. Sort Fields
c. Sender details
d. Dunning areas
e. Dunning keys
f. Dunning Block reason
g. Interest
h. Dunning grouping

C Parameters for the Dunning Run

1. Every dunning program is identified by 2 fields

a. Run Date
b. Identification

2. The identification is used to diffentiate between prgram that have the same run date.

3. The parameters specify the accounts and documents that are to be considered in the
dunning run.

D Dunning Run

1. The dunning run creates a dunning proposal

2. The dunning run can be divided into 3 steps

a. Select Accounts
b. Dun Line Items
c. Dun Accounts

3. Following criteria must be fulfilled for an account to be selected for dunning.

a. A dunning procedure must be entered in the master data.
b. the date of last dunning run entered in the account must be earlier than the
dunning interval date of
the dunning procedure

4. Usually payment terms of a credit memo donot apply, instead the followin rules are
applied
a. if credit memo is invoice related, it has the same due date as the invoice
b. all other credit memos are due at the base line date.

5. The account must have a debit balance for it to be dunned.

6. The dunning notices lists all the items that were cleared.

7. If no grace period is defined, the system start the dunning procedure as soon as the net
due date is reached

8. The dunning date is the dya when ther overdue items ar dunned

9. Every dunned item must be overdue, but not all over due items are dunned.

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10. The system add the accoung or item to block list, if it finds dunning block on account or
item level.

11. If payment method for incoming payment has been specified for an item, the item is not
considered for dunning

12. Each dunning procedure contain up to 9 dunning level

13. The higher the dunning level, the stronger the formulation in the dunning text.

14. Dunning procedures with only one dunning level are referred to in the system as
Payment Reminders

15. By assigning dunning keys to certain item, these can be prevented to exceed a certain
dunning level.

16. The total amount of all the items in a account with a certain dunning level must be
greater thana defined
minimum amount.

17. The relationship between total amount and total open items must be greater than a
minimum percentage

18. The account can onlydunned if at least one item has reached the minimum days in
arrears per account.

19. The accounts gets the highest dunning level for all the items that have been dunned.

20. An account is only dunned if one of the following condition is fullfilled

a. The dunning data has changed since last dunning run
b. The Always Dun check has been selected

21. AS per legal dunning procedure, if start date of legal dunning procedure is entered in
the master data, the account
is always dunned if one of the following condition is fullfilled
a. Positng have been made since last dunning run
b. The Always Dun in legal dunning procedure is selected

22. The dunning data is not updated unitl the dunning notices are printed

E Editing the Dunning Proposal

1. on execution of dunnin proposal, following list are there

a. Dunning Statistic
b. Dunning List
c. Blocked accounts
d. Blocked line items
e. Dunning history

2. once dunning proposal has been created, changes to dunning data in items or master
records are ignored
in the current dunning run.

F Printing Dunning Notices

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1. The print program for the dunning procedure does the following:
a. groups items to be dunned with a dunning notice
b. generate dunning notices for each group
c. enters the dunning date and leve in the dunned items and accounts

2. Grouping can be done on following criteria

a. Dunning per dunning level
b. Grouping Key
c. Decentralized processing

3. One dunning form cal be used for all dunning levels and dunning areas

4. Dunning forms are assigned to the dunning procedures at company code level.

5. Dunning forms can be assigned for each account type, dunning level and dunning area

6. Dunning noteics can be printed with an attached payment form for bank transfer.

7. The dunning notice must only contain items with the company code currency.

8. The payment program can create a payment advice note containing items in the
dunning notice.

9. The payment advice note number has 10 digit and starts with 08

Uni Correspondence
t4
A. Correspondence - Overview

1. There are vrious types of correspondence in SAP

a. Periodic correspondence (account statement, invoice etc.)
b. Online correspondence

2. The correspondence creation process comprises of following:

a. Request the required correspondence
b. The requested correspondence types are printed

B Correspondence Types

1. A correspondence type represents a type of letter in the system.

2. Following correspondence are generated manually

a. Document Creation
b. Display/Change line item
c. Balance display
d. Line Item processing
e. payment

3. Following correspondence are generated automatically

a. Periodic bank accounts statements
b. balance confirmation

4. Data from several different company codes can be combined in one letter.

5. Depending upon the correspondence type, the required information are

a. Document number

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b. Account number

6. Each correspondence type has a correspondence print program.

7. Each print program has a selection variant which contains parameters to generate
desired correspondence
and used when creating correspondence automatically.

8. Each program is assigned a SAPscript form.

9. A correspondence type can have difference forms which are identified throug form ID.

10. Correspondence type can also with used with certain Reason Codes

Uni Interest Calculation

t5
A. Fundamentals of Interest Calculation

1. There are two types of interest calculation

a. Account Balance interest calculation
b. Interest on arrears/item interest calculation

2. A certain interest rate is used for the total balance of an account over a fixed period of
time for Account Balance

3. A certain rate of interest is calculated for the items that are still open or unpaid at a
specified date for Item Level.

B Configuring Interest Calculation

1. Configuration take place in 5 areas:

a. Interest Calculation Indicator
b. General Conditions
c. Time Dependent Conditions
d. Interest Rate
e. Account Determination

2. Interest calculation indicator determine the type of interest calculation i.e. basic
parameter

3. General Condition contain additional parameters that determince the effect of the
individual intrest calculation
indicator

4. Time dependent conditions dertermine the validity date and reference to interest rates

5. Interest rates establish reference interest that interest calculation can be tied to

6. Account deteremination specified the accounts to which the results of interest

calculation are posted

7. Each interest calculation indicator (ID) must be assigned an interest calculation type.

8. Interest calculation type specified whether it is used for Account Balance or Item level.

9. Every account for which interest is to be calculated must have an interest calculation

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indicator in its master

record

10. In gernal conditions, we define

a. How often interest is calculated
b. Sets the day of the month that interest is calculated on
c. specified the interest calculation base - calender type

11. Account determination in SAP starts with predefined business transactions (for e.g 1030
Customers)

12. When business transactions are combined with other option such as company code and
interest calculation
indicator, the system than determines
a. Posting Keys
b. Account Symbols

13. Account symbol, when combined with chart of accounts and currency, refers to
a General Ledger account where interest transactions are posted.

14. Account symbol allow companies with different charts of accounts and currencies to use
the same business
transactions

15. There are different ways to calculate interest at Item Interest Calculation:
a. Calculate interest on cleared items only and post the interest
b. Calculate interest on open and cleared items and post the interest
c. Calculate interest on open and/or cleared items with posting the interest

Uni Country Specifics

t6
A. Check Management
B Lock Box

Applicable to USA.

Uni Overview of Closing Activities

t7
A. Month End and Year End Closing Processes

1. Pre closing activites takes place in old month at month end level include:
a. Open new accounting period - Technical
b. Enter Accrual/deferral, bad debts, deprection, interest calculation - FI
c. Maintain GR/IR account clearing - MM
d. Post payroll process - HR
e. Record goods issues for deliveries and invoice customers - SD
f. CO allocation and reposting, locking old accounting period - CO
g. Reconciliation postings to FI - CO
h. Foreign Currency Valuation
I. Final closing of old period

2. In addition to preclosing activities at month end level, following activities are performed
for year end closing

a. Perform Physical inventory - MM

b. Update product cost estimates - PP/CO

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c. Valuation of Material on FIFO/LIFO - MM

d. Assets valuation and investment support - AA
e. Balance confirmation - AP/ AR
f. Fiscal Year change - AA
g. Balance Carried Forward program - FI

Uni The Financial Statement

t8
A. Financial Statement Version (FSV)

1. FSV are used in

a. structured balance list
b. drilldown reporting
c. planning
d. transfering data to consolidation

2. In FSV, we define the following

a. which items to be included; sequence and hierarchy
b. text describing line item
c. chart of accounts
d. total to be displayed

3. We can define as many financial statement versions as we require.

4. FSV is defined in two steps

a. Enter it in directory of FSV
b. Define hierarchy level and assign accounts

5. Each version must have the following speical items

a. Assets
b. Liabilities
c. Profit
d. Loss
e. Profit & Loss results
f. Accounts not assigned

6. A FSV consists of a maximum of 10 hierarchy level.

7. Upto 4 lines of texts at the beginning and/or at the end of item can be written.

B Drilldown Reporting

1. Drilldown reporting is a tool that enable to analyze the GL account transaction figures
and financial statements.

2. Characteristics and key figures form the basis of the drilldown report

3. Characteristics define how your data can be classified or provide a time reference, such
as company code,
business area, chat of accounts, financial statement items, currency, fiscal year, period.

4. Key figures include stored value/quantities and calculation based on them and can
include total credit balance
balance sheet value, accumulated balance, balance carry forward

5. Each report consists of 2 categories

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a. drilldown list
b. detail list

6. Drilldown list displays a selection of key figure in combination with at least one
characteristics.

7. Details list always show all the key figure/charateristics combination

Uni Receivable & Payable

t9
A. Balance Confirmation

1. Following procedures are available in SAP and a selection has to be made

a. Balance confirmation
b. Balance notification
c. Balance request

2. For each company code, the system generate an output that include
a. Check List
b. Error List

3. Following customiztion takes place for Balance Confirmation process

a. Define form names for printing correspondence
b. Define send details for correspondence form
c. Define reply addresses for balance confirmation'
d. Specify selection criteria for balance confirmation'
e. Prepare balance confirmation for customers/vendors

4. Atleast once address must be specified to which balance confirmations should be sent

B Foreign Currency Valuation

1. FCY valuation takes place at

a. Balance Sheet GL Account e.g. Bank Account
b. Open items (customers/vendors)

2. Certain customization is done for FCY valuation

a. Check currency customization ( exchange rate table etc.)
b. Define valuation Method
c. Define expense and revenue accounts for exchange rate differences from
valuations

3. A valuation method determines how the individual line items are valuted.

4. In SAP, the strict lowest value prinicple means that writre ups are not allowed.

5. Foreign currency accounts are valuated by Balance

C Value adjustments

1. The following 3 options are available for creating value adjustments for receivable
a. Enter Individual Value adjustments as a special GL indicator
b. Execute SAP program to carry out a flat rate individual value adjustment
c. Determine the amount and pass the JV at GL account level manually.

2. The valuation adjustment key must be entered in the master record of customer accoutn

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to include in the
flat rate IVA adjustment posting

3. The valuation run produces a valuation proposal that can be edited.

4. Once valuation proposal is finalized, system makes the adjustment postings for the
relevant key date
and the reversal posting for the date after the key date

D Regrouping

1. An adjustment accounts is used as the offsetting account, as direct posting is not

possible on
reconciliation account

Unit 10 Profit and Loss

A. Cost of Sales Accounting

1. The P&L statement can be created using 2 methods

a. Period Accounting
b. Cost of sales accounting

2. In period accounting, the total output of a period and total costs of the period are
summarized

3. The total output of a period is the sales revenue -/+ change in inventory

4. The total cost are grouped by expenses

5. In cost of sales accounting, the sales revenue and cost of sale are summarized

6. In sales revenue, balance sheet changes are not considered.

7. cost of sales represent the expense related to sales and grouped by function

8. In period accounting, the posting is GR/IR clearing account to balance sheet changes
whereas in
cost of sales accounting, the posting is GR/IR clearing account to cost of goods
manufactured

9. The field Functional Area can be filled by following option and have the priority level as
well
a. Manual entries
b. automatically by substitution rules
c. automatically by master data of P&L GL Account
d. automatically by master data of CO object

10. When functional area is activated, SAP uses Cost of sales ledger.

B Controlling

1. In the SAP system, the reconciliation ledger represents cost element accounting

2. The reconciliation ledger compares the CO data with FI data and automatically
reconcile CO with FI.

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C Posting Salary Expenses from HR

1. Payroll results are posting to Accounting via the FICO interface

2. The FI documents are linked to the original HR documents via the HR document
Number.

D Accrual/Deferral Posting

1. When accrual/deferral documents are entered, a reversal reason code has to be

entered.

2. The reversal reason defines whether

a. The reversal document can have a different posting date
b. The reversal document can be comprised of negative postings

3. An accrual has to be created for an expense/revenue that has been incurred/earned in

current
and invoice to be received in future.

D Accrual Engine

1. The Accrual Engine is a generic tool for calculating and creating accrual postings

2. There are three application components for the Accural Engine

a. Manual Accrual in FI
b. Provisions for Awards in FI/HR
c. Leasing in SD

3. The Accrual Engine stores 2 types of data

a. Basic Data
b. Accrual Engine Documents and Total Records

4. Basic Data in Accrual Engine is time dependent

5. All accrual postings in Accrual Engine create Accrual Engine Document which
automatically creates
corresponding document in FI.

6. Two main processes are triggered from User Side

a. Create/change basic data
b. Periodic start of the accrual run.

7. Accrual engine have several advantages

a. It calculates the accrual amounts automatically
b. accrual postings are made automatically.
c. simulation can be possible for future accrual
d. it supports parallel accounting with either different account areas or parallel
ledgers
e. Extensive Information system is available

8. To activate the accrual engine, following customization takes place

a. The application must be assigned to Company Code
b. Accounting Prinicple must be defined
c. Application has to be assigned with required combination of accounting
principle and company code

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d. Current fiscal year must be open for application component.

9. Following are the closing activities in Accrual Engine

a. Reconiciliation: Accrual Engine/General Ledger
b. Balance Carryforward

E Manual Accrual

1. The basic data is usually subject matter to be accrued based on different contracts

2. Deferral has to be created when an expense or revenue is posted in the current period,
but is incurred
or earned in the future.

3. Accrual has to be created when an expense or revenue is to be received in future, but is

incurred or
earned in the current period.

4. The subject to be accrued is defined as an accrual object and are identified uniquely for
each company
code using an accrual object number.

5. The accrual objects are grouped in accrual object categories for manual accruals.

6. Each accrual object can have several accrual items.

7. Accrual item describes how a related accrual is accrued using a specific accounting
prinicple

8. The accrual item contains an accrual method for which a function module is defined.

F Posting Control and Account Determination

1. The posting control is defined for each

a. company code
b. accounting principle
c. accrual type

2. For each combination, it is defined

a. Frequency
b. Summarization level.

3. There are three options for summarization level.

a. No Summarization
b. Summarization at accrual object level.
c. Maximum summarization.

4. The purpose of account determination is to

a. Determine document type
b. determine debit account
c. determine the credit account

5. For parallel accounting, the accrual engine supports

a. Parallel accounts
b. Parallel ledgers

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6. Accounts are determined using derivation rules which consist of

a. Conditions under which the derivation rules is executed
b. Determination of fields used in the derivation rules in which source and target

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7. There are two method of determing the cash flow

a. Direct method (cash flow = incoming revenue payment - outgoing expenses)
b. Indirect method (cash flow = annual profit + expenses that do not affect
payments - revenue that

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ITS Department