Balance Sheet and Cash Flow tabs

Balance Sheet

1. Select the Balance Sheet statement.

   • This setting determines the layout of the Balance Sheet budget.

   • A default statement is selected for you but you might have others to choose from if your organization has created them in the Financial Statements module.

2. Show or hide nested calculations as required. This setting determines whether nested calculation rows are shown in the worksheet or not. These calculation rows come from the selected statement. By default, Show is selected, which means the calculation rows in the budget are expandable and you can see the nested derived rows underneath. If that's not desirable, select Hide to remove these rows and only see the top-level calculation values.

3. Set the Balance Sheet budget hierarchy levels.

   • By default, the first level is the top-level group (category) for the Balance Sheet statement, and you can't change it.

   • You can't add levels here if there are no other levels in the P&L budget setup.

   • Where levels are available, you can have fewer levels in your Balance Sheet than are in your P&L. For example, you might want to do your Balance Sheet and Cash Flow budgets at the company level but include your company and branch in your P&L.

   • To add a level, click Add level, then select the dimension you want to add at that level. The dimensions that are available in the list correspond to the levels in the P&L budget setup.

   • If you add multiple levels, you can reorder those levels to determine how the dimensions are grouped in your Balance Sheet budget. Click and hold the level's Move button (a blue box displays around the row), then drag the level up or down to its new position.

Opening Balance

1. Select the opening balance stream. This is the stream from which your Balance Sheet values come. In most cases, this is the Balance Sheet stream but you might have other options to choose from.

2. (Optional) Change the opening balance start date (previous period end date).

   • By default, this date is selected for you, as it is linked to the start date of your P&L budget setup. For example, if your budget period is April 2023 to March 2024, the Balance Sheet opening balance date is the month before that period, March 2023.

   • This date must be on or before your Balance Sheet budget period start date, as it informs the initial opening balance for your Balance Sheet budget and enables changes (movements) to be entered to create a sensible budget opening position. When the Balance Sheet budget starts in a future month, the opening balance helps you to form the bridge between the last closed period and the beginning of the budget period.

   • You can change this date in the future. For example, when you're in the budget period, you can actualize your Balance Sheet by bringing in the actual opening position for that budget period.

1. (Optional) Change the Measure. By default, the measure is selected for you, as it is linked to the stream you selected in step 5. The measure is typically the same as the measure used in the P&L budget.

2. Set the measure format (prefix, decimal, and suffix) to determine how the measures (numerical values) display in the grid.

Cash Flow (optional)

Select the Include tab checkbox to include a Cash Flow budget alongside the Balance Sheet budget, then select the statement and set the levels as you did for the Balance Sheet.

• The Cash Flow budget will display on a separate tab in the workbook.

• The values in the Cash Flow budget are automatically derived from the values in the P&L and Balance Sheet budgets. The budget hierarchy levels are inherited from the Balance Sheet budget but if available, you can add custom levels that will help you to group your Cash Flow statement.

Drivers (optional)

Select the Include mini drivers… checkbox to add drivers to the Balance Sheet. For more information about this feature, see Use mini drivers section below.

Click Next.

This step is applicable if you selected the Include mini drivers… checkbox in the previous step. Otherwise, you can ignore it and proceed to the Retained Earnings mapping step.

You can add four types of drivers. This part of the setup can be complex, so see the Use mini drivers section (below) for detailed information.

After you add the drivers, click Next.

Map the entities in the selected dimension to the Retained Earnings account(s).

• This setting determines the General Ledger Retained Earnings account code(s) in the Balance Sheet budget to which the profit from the P&L budget is allocated. Retained Earnings represent the equity of the business (what the business is worth).

• If you have no levels in the budget, such as in the case of a consolidated Balance Sheet budget, you will only have one Retained Earnings account to map. Otherwise, you might have multiple accounts to map. Depending on your account structure, you can use the same Retained Earnings account for several entities or use different accounts as required.

• If you have a lot of entities, you can filter the list of entities and/or select the Not mapped option from the All dropdown list on the top right to help you complete the mapping.

  
• To map one entity, click the yellow box on the right and select the account from the list that displays.

• To map multiple entities to one account, select the checkboxes of those entities or click the Select all button in the top left corner of the grid, then select the account from the list that displays.

  

Click Next.

Map the entities in the selected dimension to the Cash account(s).

• This setting determines the General Ledger account code(s) in the Balance Sheet budget that captures all the changes to cash.

• Depending on your account structure, you can use the same General Ledger Bank account code for several entities or use different accounts as required. Typically, you use a separate bank account for each entity. If you have no levels, such as in the case of a consolidated Balance Sheet budget, you will only have one bank account to map.

• Map entities on the left to the Cash account code on the right as you mapped to the Retained Earnings accounts. The bank and/or cash accounts display at the top of the list (marked with a bank icon).

  

Click Save and finish. Proceed to explore your new Balance Sheet and Cash Flow budgets, which are displayed in separate worksheet tabs.

The Debtor Days template has the following components:

Calculation: (P&L Movement/Days()) * Accounts Receivable Days, where:

• Days = Accounts Receivable Days. The number of days it takes to receive payment from your customers.

• Reference = The P&L Movement; the accounts in your P&L that drive your accounts receivable. In other words, the accounts from which you are going to get the sales that determine your debtor balance.

For example, suppose you typically collect debtors every 22 days and this is based on the values in your Sales (Retail) and Sales (Online) accounts. You can customize the Debtor Days template to meet your needs, as illustrated in the following image.

In the Balance Sheet, when you expand the Accounts Receivable account row, you can see the mini driver lines. When you look at the values, you can see the movement in your debtor balance, which reflects when there are higher and lower sales.

Watch this video for a demonstration of adding the Debtor Days mini driver.

The Creditor template has the following components:

Calculation: (P&L Movement/Days()) * Accounts Payable Days, where:

• Days = Accounts Payable Days. The number of days it takes to pay your suppliers.

• Reference = The P&L Movement; the accounts in your P&L that drive your accounts payable. In the case of creditor days, you need to identify the accounts from which you are going to determine your creditor balance.

For example, suppose you typically pay your creditors every 40 days and this is based on the values in your Purchases and Expenses accounts that are paid on credit terms. You can customize the Creditor Days template to meet your needs, as illustrated in the following image.

In the Balance Sheet, when you expand the Accounts Payable account row, you can see the mini driver lines. When you look at the values, you can see the movement in your creditor balance, which reflects when there are higher and lower purchases and expenses.

Watch this video for a demonstration of adding the Creditor Days mini driver.

The Stock template has the following components:

Calculation: (P&L Movement * Stock Days) / Days(), where:

• Days = Stock Days. The number of days it takes to sell stock.

• Reference = The P&L Movement; the accounts in your P&L that drive your accounts payable.. In the case of stock days, you need to identify the accounts from which you are going to determine your stock balance, which is typically your Cost of Sales.

For example, suppose you typically turn over stock every 32 days and this is based on the values in your Cost of Sales accounts. You also need to make adjustments for seasonality impacts throughout the year. You can customize the Stock Days template to meet your needs, as illustrated in the following image.

In the Balance Sheet, when you expand the Inventory account row, you can see the mini driver lines. When you look at the values, you can see the movement in your stock balance, which reflects when there are higher and lower cost of sales. The adjustment line is empty, ready for when you need to manually enter values.

Watch this video for a demonstration of adding the Stock mini driver.

The Loan - Existing template takes an opening loan balance, adds the interest on a periodic basis, and reduces the loan by the repayment amount.

Complete the following fields:

• Annual interest rate: Enter the interest rate for the loan.

• Recurring payment: The amount you are repaying each period.

Watch this video for a demonstration of adding a mini driver for an existing loan. It also shows how you can use the interest cost to drive the Interest account in the Profit and Loss.

The Loan - New template uses the principle, interest rate, and number of periods to calculate the repayment amount. It then takes the principle, adds the interest on a periodic basis, and reduces the loan by the repayment amount.

Complete the following fields:

• Annual interest rate: Enter the interest rate for the loan.

• Term: Enter the number of payment periods over the life of the loan. The template is set up to work for monthly payments. If you need to calculate other periodic payments, you'll need to adjust the calculation.

• Principle: Enter the amount of the loan.

• Payment timing (0-end, 1-beginning): Enter 0 or 1 as applicable to state whether the payments are at the beginning or end of the period.

• Counter: Enter the start period. For example, if the budget period starts in January and the loan is drawn down in March, enter 3.

Watch this video for a demonstration of adding a mini driver for a new loan.