1. Long Business Systems, Inc. (LBSi) Management Software Solutions We help businesses manage for success Cleveland – Columbus – Cincinnati - Pittsburgh

2. Cash Flow Reporting Agenda:  Why is it important?  Authorizations & setup  Elements of Cash Flow Report  Recurring Postings & Cash Flow Report  Cash Flow Reports

3. 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

4. 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

5. Authorizations: Set-up  Review user authorizations Go to: Administration > Initial Settings > Authorizations> General Authorizations

6. Authorizations: Reporting  Review user authorizations Go to: Administration > Initial Settings > Authorizations> General Authorizations

7. Set-up: General Settings  Define settings for assigning cash flow items to transactions Go to: Administration > System Initialization > General Settings

8. Elements of Cash Flow Report

9. Cash Flow Relevant Accounts  Only “active” accounts at the asset level can be Cash Flow Relevant  Use “Category” to classify G/L accounts

10. 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.

11. Recurring Postings & Cash Flow  Create recurring postings to capture budgeted expenses  payroll, rents, lease payments

12. Assigning Cash Flow  Assign cash flow items in Payment Means, Deposit or Payment Wizard windows.

13. 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

14. Statement of Cash Flow Report  Review classifications, compare & adjust cash flow items

15. 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

16. Cash Flow Report  Reports by “Security Level”  Shows running projected cash flow balance

17. 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?

18. Next Meetings: o Tuesday, Mar. 13, 2012 o What’s New o Tuesday, Apr. 10, 2012 o TBA – Give us your ideas

19. Long Business Systems, Inc. (LBSi) Cleveland – Columbus – Cincinnati –Pittsburgh Contact Information: Vicki Smith Senior Consultant email: vicki@lbsi.comvicki@lbsi.com Phone: 440-846-8500 ext 22 www.lbsi.com