I have also setup exception aggregation rules for both measures, LAST across DATE dimension for CALC_CLOSING and FIRST across DATE dimension for CALC_OPEN. PRIOR function is used inside the iteration expression (ITERATE formula) to retrieve the value that was calculated for the previous member.ĬALC_OPEN is a fairly straight forward computation, I guess there’s no need for further explanation. Please also note there is a handy little helper available on the right side of the screen for every function that you are using. Here are formulas for calculated measures. I have used CALC_OPEN to calculate an opening balance of the period based on the closing balance and inflows & outflows of that period. Measure CALC_CLOSING is the one using ITERATE (and PRIOR) function for creating the ending balance of each period that we have in our table. Measures In and Out will serve for entering inflows and outflows for certain Account items (so in my case I keep it simple…just 2 accounts). Measure Initial/Correction will serve to enter the initial opening balance, just to keep it separate from inflows and outflows. I have created a simple measure based model with dimensions & measures as follows: ATTENTION: Customers are usually receiving updates within quarterly release cycles so this is planned (with all the usual disclaimers) to be part of the 2022.QRC4 release (upgrade is scheduled between 11. Since release 2022.19 it is possible to use so called ITERATE formula (more info in What’s new blog post) to create carry forward calculations in the model. In this blog post I will show you how you can execute carry forward with the help of model formula (Example 1: Model formula) and with the help of data actions (Example 2: Use data action – carry forward advanced formula). Please note that carry forward approach can be used in many different scenarios, like headcount planning, inventory level, etc so in all use cases where we are operating with opening & closing balances and related inflows & outflows. …and that’s why I would like to show you this example of how to model Cash Flow planning/forecasting scenario in SAP Analytics Cloud with special focus on the so called carry forward routine (the routine which writes ending balance of previous period into the opening period of the current period). So, I hope we all can agree, Cash is King. In the end also some company valuations used in M&A processes are based on a free cash flow. But it has everything to do with the health of our business, like do we actually get the money in after we sell our goods or services, do we sell for more than our production costs are (hence get more in, then getting out), do we have enough money in our bank accounts for salaries of our employees or even will we have enough money for the acquisition that we plan to do next month. On the other side, cash flow or our net liquidity position has not much to do with the accounting creativity. As we all can see, accounting can be creative discipline, of course within the boundaries of the accounting standards and other rules and regulations. Or as the father of Shareholder Value, Alfred Rappaport stated: “Profit is an opinion, cash is a fact!”. One of my first lessons when talking about the profits with the accountant was the answer to the question “How much profit are we going to have in the year YYYY?” The accountant replied with a question “Well, how much do you want to have?”. Table 1.Liquidity Planning – SAP Analytics Cloud standard business content Net profit is £16,000 (£50,000 - £34,000).īased on these figures, we can create an income statement of the company: Other expenses are rent and rates, heat and light, fixtures and fittings, staff wages, and they equal £33,000 (£5,000 + £4,000 + £6,000 + £18,000). Other payments were: rent and rates £5,000, heat and light £4,000, fixtures and fittings £30,000 (expected to last 5 years), and staff wages £18,000. In 2021, it bought 2,000 jackets for £20 each and sold all of them for £45 each.
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