Cash flows classification

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Direct Method Cash Flow Statement not reporting correctly

The Direct Method Cash Flow Statement is not classifying items correctly. See screenshots below of comparison between direct method and indirect method. The direct method statement is reporting all amounts under Operating Activities when some of it should be reported as Investing activities. It is possible to get the Direct Method to report correctly if I record the transaction as a payment only (not as Purchase invoice then payment). Is there something that I am not doing correctly? [imag…

I agree that direct and indirect methods need to be consistent. Currently direct method is not looking into invoices.