Direct: Σ receipts − Σ payments. Indirect: profit + depreciation ± working-capital change ± investing ± financing
Direct cash flow shows actual receipts and payments from the banks; indirect starts from accounting profit and adjusts for non-cash items and working-capital changes. Both reach the same change in cash by different routes.
How it is calculated
Direct: Σ receipts − Σ payments, by category. Indirect: profit + depreciation ± change in receivables, inventory and payables ± investing ± financing.
Example with numbers
Profit 50, depreciation 10, receivables up 30 (you collect less than you sell): indirect cash flow = 50 + 10 − 30 = 30. Direct must also give 30 from the period's bank movements; if not, something is missing.
How Fibady does it
Fibady generates both: the indirect from the accounting and the direct from each bank's movements classified by concept. Plan vs. actual management control adds the bridge from profit to cash, to show why the cash variance is not the profit variance.