Use this screen to design your company's balance sheet, income statement, and cash flows statement.
To have these reports available to you in the system, you must have at least one primary balance sheet and one primary income statement. The system comes with the following defaults: Balance Sheet (BALSHT), Income Statement (INCSTM), and Cash Flow (CSHFLOW). 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.)
Your entries in the Major Subtotal Titles and Group Headings fields 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 have a financial statement line (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 (Accounting\Transactions\Cash Flow).
This screen consists of: two blocks, a table window, and two subtasks.
Use the Financial Statement Set Up block to create financial statement codes and their descriptions.
Use the Financial Statement Details block to specify the type of financial statement that you are creating.
Use the Cash Flow Accounts subtask to review the accounts and their types.
Use the Link to Accounts subtask to assign particular accounts to each line of a balance sheet or income statement.
You should design the layout of the primary financial statement as part of your system initialization. Because each account in the Accounts screen (Accounting\Maintain\Accounts) 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 Accounts screen (Accounting\Maintain\Accounts) before you can link them to the non-primary F/S lines in the Link to Accounts subtask.
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Warning: If you are changing project account groups, owning organizations for projects, revenue levels, revenue formulas, or organization structures, you should wait to make these changes until you have computed final revenue for the fiscal year being closed. Making changes at the wrong time could result in incorrect calculations in the current fiscal year. |
Use the fields in this block to create financial statement codes and their descriptions.
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.
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Note: After you have saved the Financial Statement Code, you cannot change it. |
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 is used on system reports.
Use the fields in this block to specify the type of financial statement that you are creating.
Select the radio button in this block that describes which of the three financial statements you are designing.
You should select Balance Sheet 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.
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Note: The Cash Flows statement, the Balance Sheet, and the Income Statement must be at the same organization level because the Cash Flows Statement is derived from both the Balance Sheet and the Income Statement. |
Select this checkbox if this financial statement code is part of the primary financial statements.
You must set up primary financial statements before you can begin entering accounts in the Accounts screen (Accounting\Maintain\Accounts). Each account you set up in the Financial Statement Mappings screen (Accounting\Maintain\Financial Statements) must belong to one line of the primary balance sheet or the primary income statement.
Only one primary balance sheet, primary income statement, and primary cash flow statement can be maintained at any time. If you need to designate a different balance sheet, income statement, or cash flow statement as primary, first uncheck this checkbox on the current primary balance sheet, income statement, or cash flow statement.
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Note: If you designate a different balance sheet or income statement as primary after selecting this checkbox, you must link accounts to F/S lines in the Link to Accounts subtask. You must repeat this process each time you change primary statements. |
Sync with Cash Flows Statement
Select this checkbox to synchronize the cash flow statement for any changes made to the linked income statement or balance sheet.
This block is available only if you selected the Cash Flows radio button for the type of financial statement. You must specify and load a balance sheet and income statement into the cash flow that is loaded into the table window.
Enter, or use Lookup to select, a balance sheet code to be used for this cash flow code.
Enter, or use Lookup to select, an income statement code to be used for this cash flow code.
Use this pushbutton to load the details of the Balance Sheet and Income Statement.
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Note: This table window will have different columns depending on which radio button you selected in the Type group box. |
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 entries in the Major Subtotal Titles and Group Headings fields. The Cash Flows Statement will subtotal by your selection in the Activity Type field ("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 on a spreadsheet. First, decide on the major groupings (or major subtotal titles) that 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:
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Major Subtotal Titles |
Group Headings |
Line Titles |
Rev Sign |
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Assets |
Current Assets |
Cash |
N |
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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 Link to Accounts subtask link. 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.
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Note: The columns in this section will appear only if you select either the Balance Sheet or Income Statement radio button in the Type group box. |
Enter the major subtotal titles that will appear on this financial statement. For example, "Assets" and "Liabilities and Equity" are commonly 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.
Enter the group headings that you want to appear on this financial statement. For example, "Current Assets," "Property, Plant, and Equipment," and "Other Assets" could 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 are subtotaled according to the group heading and major subtotal title to which you assigned them.
Select the checkbox if the line normally has a credit balance; leave it unselected if the line normally has a debit balance.
For example, "Accounts Payable" would typically be checked, while "Cash" would be unchecked. The following table shows general guidelines:
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Assets |
Unchecked |
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Liabilities |
Checked |
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Equity |
Checked |
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Income |
Checked |
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Expenses |
Unchecked |
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Hint: When adding balance sheets, don't forget to add the appropriate income statement accounts to the "net profit/loss" F/S Line so the balance sheet will balance. |
Select this checkbox if this line contains revenue accounts; leave it unselected if the line does not contain revenue accounts.
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Note: 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 screen (Projects\Process\Project) 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.
You must have already established the FS reclass debit accounts in the Accounts screen (Accounting\Maintain\Accounts). 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 you should enter the reclass accounts for the pool costs in the Cost Pools screen (Projects\Maintain\Allocations). Therefore, it is not necessary to enter account numbers for FS lines that contain only burden cost accounts.
Debit and credit reclass 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 you enter 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. Use elimination accounts in the Create Elimination Entry process to sum the balances of each account linked to that line.
Enter, or use Lookup to select, a valid elimination account.
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Note: The three columns in this section display only when you select the Cash Flows radio button in the Type group box. |
Line titles linked to the selected primary financial statements (balance sheet or income statement) will default in this field. 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 field to link accounts mapped to the financial statement line to account types that will determine how the accounts are calculated. You can link account types to calculation methods in the Cash Flow Account Types screen (Accounting\Maintain\Financial Statements). Lookup is available in this field.
Use the drop-down box in this field to define the Primary Financial Statement Line's activity. You can select "Operating," "Financing," or "Investing."
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Note: If the activity types are classified incorrectly, the Cash Flows Statement will still be in balance; however, the Activity Type subtotals will be incorrect. |
Enter, or use the drop-down box to select, a balance sheet code that is linked to the Cash Flows Statement Financial Code.
Enter, or use the drop-down box to select, an income statement code that is linked to the Cash Flows Statement Financial Code.
Use this subtask link to open the Link to Accounts 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.
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You will not be able to link accounts if the Financial Statement Type is a Cash Flows. |
Use the Cash Flow Accounts subtask to review the accounts and their types.
Changes to this screen update the FS (Financial Statement) and FS_LN (Financial Statement Line) tables.
