What is operating cash flow in SAP FIN-FSCM-CLM - Cash and Liquidity Management?

SAP Term: operating cash flow

• Component: FIN-FSCM-CLM

• Component Name: Cash and Liquidity Management

• Description: The cash flows generated from operational activities, for example, purchasing raw materials, production, building inventory and sales.

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• Key Concepts: 
  Operating cash flow is a measure of the amount of cash generated or used by a company's core business operations. It is calculated by subtracting operating expenses from operating income. Operating cash flow is an important indicator of a company's financial health and ability to pay its bills. 
  
  How to use it: 
  In SAP, the Cash and Liquidity Management (CLM) component of the Financial Supply Chain Management (FSCM) module can be used to manage operating cash flow. CLM provides tools for forecasting, monitoring, and analyzing cash flows, as well as managing liquidity and risk. It also provides tools for managing payments and collections, and for optimizing liquidity. 
  
  Tips & Tricks: 
  When using CLM to manage operating cash flow, it is important to ensure that all relevant data is accurately entered into the system. This includes information about expected payments and collections, as well as any other relevant financial data. Additionally, it is important to regularly review the forecasts generated by CLM in order to ensure that they are accurate and up-to-date. 
  
  Related Information: 
  For more information about CLM and how it can be used to manage operating cash flow, please refer to the SAP Help Portal or contact your local SAP representative.