Use this screen to design your company's balance sheet, income statement, statement of CI, and cash flows statement. To have these reports available to you in the system, you must design at least one "primary" balance sheet and one primary income statement. You can design as many different sets of financial statements as you need, but only one income statement and one balance sheet can be designated as "primary." You can print financial statements for any level of an organization. (The organization level is chosen as one of the printing parameters when you print the financial statements. For example, if you print at organization level "2," and you have five different level "2" organizations, you will get five different sets of financial statements, one for each level "2" organization, with a page break between organizations.)
Unlike the Balance Sheet or the Income Statement, the Cash Flows Statement is always primary and cannot be redesigned.
The Major Subtotal Titles and Group Headings you set up here define the subtotals that will display on your financial statements. The order in which you set up financial statement lines in this screen determines the order in which these lines will appear on your financial statements.
You must set up the financial statement line here (or "F/S line") for profit/loss before you can enter it in the G/L Settings screen.
The Cash Flows Statement will subtotal by activity type. The order in which the lines default from your primary Balance Sheet and Income Statements will define the order in which they will appear under each activity type. You can make changes to the system-generated Cash Flows Statement in the Edit Preliminary Cash Flows Statement screen.
You should design the layout of the primary financial statement as part of your system initialization. Because each account in the Maintain Accounts screen must belong to the primary balance sheet, the primary income statement, or the cash flows statement, this is one of the first screens you should set up in the system.
Enter the F/S Line for your net profit/loss in the G/L Settings screen during system initialization. You must first set up accounts in the Maintain Accounts screen before you can link them to the non-primary F/S lines in the Financial Statement Account Linkage subtask (accessed by selecting the Link to Accounts pushbutton.)
Enter a financial statement code, containing up to six alphanumeric characters, for the financial statement you need to set up. You will be prompted for this code when printing the financial statements. The system comes provided with a default primary balance sheet, income statement, and cash flows statement, with codes of "BALSHT," "INCSTM," and "CSHFLOW," respectively. You can either modify these default statements or set up new primary financial statements to replace them before saving this information for the first time.
If you need to set up new financial statement code(s) as the primary financial statement(s), first uncheck the Primary Financial Statement checkbox for "BALSHT," "INCSTM," and "CSHFLOW."
Enter a description, containing up to 30 alphanumeric characters, for the financial statement you need to set up. This description will be used on system reports.
Select the radio button that describes which of the three financial statements you are designing.
You should select Balance Sheet (this is the default) if the major subtotal lines reset their totals on every change of title.
You should select Income Statement if the major subtotal lines maintain a running total despite a change of title.
You should select Cash Flows if you are seeking sources of net cash provided to your company. Selecting the Cash Flows radio button will cause the column headings in the table window to change. Also, the Balance Sheet Code and Income Statement Code drop-down boxes will be enabled.
If you would like to print a separate Statement of CI, you should select this option. This statement is used by multi-currency users who want to revalue their balance sheets accounts and have a separate statement rather than displaying the revaluation at the bottom of the income statement.
Use this radio button to activate the Include Unposted OCI (Other Comprehensive Income) Amounts checkbox.
Select this checkbox if this financial statement code is part of the primary financial statements. You must set up the primary financial statements before you can begin entering accounts in the Maintain Accounts screen. Each account you set up in the Set Up Financial Statements screen must belong to one line of the primary balance sheet or the primary income statement.
Only one primary balance sheet and one primary income statement can be maintained at any time. If you need to designate a different balance sheet or income statement as the primary balance sheet or income statement, first uncheck this checkbox on the current primary balance sheet or income statement.
For the Income Statement and Balance Sheet, the financial statement table window contains a row for each line of the financial statement. Your actual financial statement will print each line in the same order that you establish in this screen, with totals and subtotals based on your Major Subtotal Titles and your Group Headings. The Cash Flows Statement will subtotal by Activity Type ("Operating," "Financing," and "Investing").
When preparing to implement a financial statement, you will probably find it easier to first organize it on a piece of paper or a spreadsheet. First, decide on the major groupings (or Major Subtotal Titles) you will need, such as "Assets," "Liabilities and Equity," "Gross Margin," "Net Profit Before Taxes," etc. (All group headings and line titles set up with the same major subtotal title will be subtotaled together on the financial statement, provided they are all in correct sequential order within this table.)
Then determine the Group Headings; for example, within the "Assets" major subtotal title, you would probably have "Current Assets," "Fixed Assets," and "Other Assets." (All line titles set up with the same group heading will also be subtotaled on the financial statement; again, they must be set up in the correct sequence within this table.)
Once you have your Group Headings mapped out, decide on the line descriptions that should appear within each group; for example, within the "Current Assets" group heading, you would probably have "Cash," "Billed Receivables," etc.
When you know how you want your statement to look, enter each line of the statement into the table window, in the order in which you need the lines to print on your financial statement. For example, the first few lines would probably be something like:
|
Major Subtotal Titles |
Group Headings |
Line Titles |
Rev Sign |
|
Assets |
Current Assets |
Cash |
N |
|
Assets |
Current Assets |
Billed Receivable |
N |
In this example, "Cash" and "Billed Receivables" would be subtotaled under "Current Assets" on the financial statement. The "Current Assets" would then be subtotaled with any other Group Headings that were assigned a major subtotal title of "Assets," to arrive at the "assets" total. You must set up your financial statement lines in this table in the exact order in which they should print on the financial statement for all of the subtotals to work correctly. In other words, all items that have the same group heading must be grouped together, and all items that have the same major subtotal title must be grouped together.
Then assign the accounts that make up each line, using the Financial Statement Account Linkage subtask (select the Link to Accounts pushbutton to access this subtask). The columns are described individually below, but keep in mind that you will be entering data one line at a time, not one column at a time.
Enter the major subtotal titles that will appear on this financial statement. For example, "Assets" and "Liabilities and Equity" would commonly be used as Major Subtotal Titles for a balance sheet. You will need to repeat the major subtotal title information for each line of the financial statement that falls under it. All these lines should be grouped together in the order in which they should appear on the financial statements. The major subtotal title will provide a subtotal for all lines assigned to the same major subtotal title. You can enter up to 30 alphanumeric characters in this field.
In this column, enter the group headings that you want to appear on this financial statement. For example, "Current Assets," "Property, Plant, and Equipment," and "Other Assets" might be some of the Group Headings under the Major Subtotal Title of "Assets." You will need to repeat the group heading information for each line of the financial statement that falls under it. All these lines should be grouped together in the order in which they should appear on the financial statements. The group heading will provide a subtotal for all lines assigned to the same group heading. You can enter up to 30 alphanumeric characters in this field.
Enter the individual lines that you want to appear on this financial statement, in the order in which they should appear. This is the most detailed level of the financial statement. For example, you might set up "Cash," "Billed Receivables," "Prepaid Expenses," and "Notes Receivable" as some of the line titles under the Group Headings of "Current assets." These lines will be subtotaled according to the group heading and Major Subtotal Title to which they are assigned.
Select this checkbox to include other comprehensive income amounts which did not get posted to the General Ledger as part of the balance sheet revaluation process. You can use the Line Titles column to label the different parts of the Statement of Comprehensive Income.
If you do not select this checkbox, the system will retrieve the other comprehensive income amount from the General Ledger account that you specified in the G/L Settings of the General Ledger module and include it at the bottom of the regular income statement.
The Include Unposted OCI Amounts checkbox is unselected by default.
Enter "Y" if the line normally has a credit balance, or "N" if the line normally has a debit balance. For example, "Accounts Payable" would typically be set to "Y," while "Cash" would be set to "N." The following table shows general guidelines:
|
Assets |
N |
|
Liabilities |
Y |
|
Equity |
Y |
|
Income |
Y |
|
Expenses |
N |
Enter "Y" if this line contains revenue accounts, or "N" if the line does not contain revenue accounts. (You should not link a single financial statement line to both revenue and non-revenue accounts.)
Enter, or use Lookup to select, a valid account number that will be used as the debit side of the Cost Transfer Journal Entry for this FS line. When the cost of a project is charged to the performing organization(s) (or "org") and the revenue is collected by the owning org, the Create Cost Transfer Journal Entry function in Costpoint Cost and Revenue Processing in the Projects folder will automatically create a journal entry to reallocate the cost from the performing org(s) to the owning org. After posting this journal entry, you will be able to print Income Statements by org, if needed.
The FS reclass debit accounts must already be established in the Maintain Accounts screen. They should be detail accounts with the Project Required checkbox unchecked. You should enter them only for Income Statement types and only for FS lines that contain project costs. Note that the reclass accounts for the pool costs are entered in the Cost Pools screen in Costpoint Cost and Revenue Processing. Therefore, it is not necessary to enter account numbers for FS lines that contain only burden cost accounts. Debit and credit accounts should be unique for each FS line, to provide visibility to the reclass process. Remember to link the reclass account numbers to the proper orgs and their respective FS lines when assigning accounts.
Enter, or use Lookup to select, a valid account number. The account number entered will be the credit side of the Cost Transfer Journal Entry for this FS line.
This column will be available only if you are licensed for the Consolidations module. You can enter elimination accounts only for primary financial statements.
Elimination entries are journal entries that eliminate duplicate revenue, expenses, receivables, and payables. These duplications occur as the result of intercompany work where the sending and receiving companies both recognize the same effort. Both entities correctly recognize the revenue, expenses, receivables, and payables on their respective company financial statements, but at the consolidated level, these amounts are duplicates and must be eliminated. Elimination journal entries are calculated on a year-to-date basis and are reversing.
The accounts entered in this field will be used to eliminate the amounts on the financial statement line when the elimination entry is created. That process will sum the balances of each account linked to the financial statement line and create an elimination entry using the accounts linked in this field.
Enter, or use Lookup to select, a valid elimination account.
Line titles linked to the selected primary financial statements (balance sheet or income statement) will default in this column. You cannot modify line titles and account linkages in this screen; however, you can make such modifications in the balance sheet or income statement.
Use this column to classify activity types as they will appear on the Cash Flows Statement. The system will also analyze the data that will display on the Cash Flows Statement. Lookup is available in this column.
Use the drop-down box in this column to define the Primary Financial Statement Line's activity. You can select "Operating," "Financing," or "Investing."
Use this group box to select balance sheet and income statement codes.
Enter, or use the drop-down box to select, a balance sheet code.
Enter, or use the drop-down box to select, an income statement code.
Enable this group box by selecting the Income Statement radio button in the Type group box.
By selecting this checkbox, you can identify other comprehensive income amounts which did not get posted to the General Ledger as part of the balance sheet revaluation process.
If you do not select this checkbox, the system will retrieve the other comprehensive income amount from the General Ledger account that you specified in the G/L Settings of the General Ledger module and include it at the bottom of the regular income statement.
The Include Unposted OCI Amounts checkbox is unselected by default.
Enable this group box by selecting the Statement of CI radio button in the Type group box.
Use this drop-down box to select an income statement code. The system will then use the code that you select to create a formula to calculate net income, which is the first line on the Statement of CI.
Use this pushbutton to open the Financial Statement Account Linkage subtask, where you assign account numbers to each line of your financial statement. In this subtask, you can view how account numbers were assigned to each line of your primary balance sheet and primary income statement. If you need to make changes to how the accounts are linked, you must make them in the corresponding financial statement.
The data you enter in this screen is stored in the FS (Financial Statement) table.