Balance Sheet Forecasting

Current Year Budgets Budgets for the current can be completed when the period is set to 0. When complete they can be copied over into the Budget Time Seruies (CYBUD) Future Years budgets Within 4CastPro budgets for the following year are normally set using the Next Year (NYFCT) Time Series when towards the end of the current year. You can forecast out remaining months so that you have an opening balance sheet forecast. The initial budget can be based on current year actuals initially by using the 5 Year Plan tool. When complete you can copy it to the CYBUD2 time seies ready to be copied over to CYBUD for when new year commences Note The Prior year and Budget Time Series are static data Time Series for reporting against so none of the forecasting methods can actually be applied to these Time Series

by rwalliker » Mon Jan 08, 2018 4:57 pm SUMMARY ACCOUNT LEVEL VIEW You drill down to the Summary Account level view from an item on the P&L Account or Balance Sheet At this level you can enter changed to forecast figures directly You can also set the % VATABLE, Days and METHOD of each account • % VATABLE – 100 means 100% VATABLE at the current main VAT rate • Days – These are the default days. You can however drill further and set different days by period or use a profile • METHOD –These define input methods and rules for a particular account eg %ACCT would be a calculated account as a % of another account You can use the “spread” button feature to • spread an amount per month • spread an amount equally over remaining months • spread using a predetermined profile Spread amounts are entered in the spread column Various accounts in the P&L are directly updated from other parts of the model. These accounts are not therefore updateable within the P&L account: • Depreciation is updated as and when the FA forecast is updated • Those Accounts set with METHOD Employ are updated from the Employment forecasting facility DETAILED ACCOUNT LEVEL VIEW You can drilldown again from the summary account level view to the detailed account level view. This view will be different for each TYPE or METHOD • A T Account view for Dividend,Tax Interest/Loan or Accrual/Prepayment accounts • A Balance Sheet view for Fixed Asset TYPE Accounts Some views allow you to set days or %’s as required Other facilities: • Withholding Tax on Sales/Costs - A % box on drilldown to Account level. This is for Companies overseas who suffer withholding tax on their sales. It also works for Suppliers where you deduct 20% under the Subcontractors scheme. Each account can have a % set which then gets excluded from SL and PL projections. A Sundry Dr or Sundry Cr account can be set as Method WHOLD - this then is accrued each month for payment the following month to authorities or can be rolled up if days set to >180 . • Days Use Default Days - A tick box on drilldown to Account level. You can unselect to set different days for each month. Use Days - A dropdown box on drilldown to Account level. You can select to use a payment profile instead. Default days will be unselected

by rwalliker » Mon Jan 08, 2018 4:58 pm All P&L Accounts and certain balance sheet accounts can have their method set when you drill down to the Account level view from an item on the P&L Account or balance sheet Each account has a dropdown with the relevant methods for that account. -ENTER Default method allowing entry of amounts on drilldown form -%ACCT,%SALES,%EMP Used to set an account up as a % of an account or account group -%PBT This can be set on Corporation Tax charge accounts to automatically accrue a tax charge at an effective rate -QTYPRICE To setup accounts where you wish to input quantity multiplied by price to calculate balance -PRODUCT Allows you to set-up the account to be one account(or statistical account) multiplied by another account -ACCRUE To set an account up with accruals and prepayments -PREPAY To set up an accrued sales account based on % sales unbilled -STOCK To set up a COS account with a stock forecasting facility where you enter stock days -STOCK2 To set up a COS account with a stock forecasting facility where you enter stock purchased/invoiced and stock consumed -STOCK% Same as stock but also allows you to set P&L charge as % of sales account -EMPLOY To set an account up for direct posting of employment costs from the -STAFF forecasting facility. You need to set one on a COS account and one on an OVH or OVE account -LOAN Can be set-up for BLO type accounts. Provides Loan forcasting capability with interest being forecast on a 1INT system account -PYT/CHG A PYT/CHG method can be set on Tax, Dividend and Interest Accounts to set up a related balance sheet account and provide T a/c functionality -PROVISION To set up a Stock, Debtor or other cost provision that does not affect Purchase ledger or cashflow -%PROVISION Same as PROVISION but also allows you to set P&L charge as % of another account -REPEAT Allows an account to repeat static balances in the forecast eg share capital CONTROL ACCOUNT METHODS These allocate balance sheet accounts needed by the system during the recalc routines which forecast certain balance sheet balances. They are auto allocated if not already set -SLCON Sales Ledger Control This is auto assigned to one type BSL account if not already assigned. -PLCON Purchase Ledger Control This is auto assigned to one type BPL account if not already assigned. -VATCON VATControl This is auto assigned to one type BPL account if not already assigned -STKCON Stock Control - Needs to be allocated to a stock account if using the STOCK Methods so system knows where to post calculated stock balances METHODS IN DETAIL (WITH CASHFLOW IMPLICATIONS): 1)ACCRUE If you select ACCRUE as the METHOD on cost/overhead accounts on further drilldown you are provided with a T account facility where you can enter say quarterly invoices and monthly P&L charges. The associated accrual/prepayment is then automatically included on a 1ACCR or 1PREP system account on the balance sheet. From a Cashflow point of view the invoices go onto the Purchase Ledger rather than the P&L Account charge For Cash Paid Items that you do not want to appear in Purchase Ledger payments on the balance sheet and cashflow set them as method ACCRUE and leave the Invoice = P&L Account charge. They will then appear separately on cashflow if 'With Accuals' is selected 2)PREPAY Sales Accounts can either be set to ACCRUE or PREPAY By setting the METHOD of a sales account to PREPAY you can drill down to a template where you can accrue sales based on a number of days sales unbilled at the end of the month. The ACCRUE method on Sales works as for cost/overhead accounts Accrued Sales are debited to a system account 1PREPS - 'Prepayments - Accrued Sales' or credited to 1ACCRS - 'Accruals - Sales' on the balance sheet depending on whether a debtor or a creditor. ACCRUE/PREPAY Accounts can also be updated in total on the Accrual/Prepayment reports 3)PYT/CHG(Related Account Method) The METHOD of Corporation Tax and Dividend and Interest Accounts should be set to 'PYT/CHG'. You then need to assign a related balance sheet account for the provision or loan account balance. On drilldown you also get a T account facility for forecasting charges and cashflow payments/receipts. The LOAN method is an alternative for Loans where all interest is posted to a 1INT system account instead of a related interest account 4)PROVISION(Related Account Method) (v7 onwards) Provisions work in a similar way to Corporation Tax and Dividends. If you select PROVISION as the METHOD on cost/overhead accounts on further drilldown you are provided with a facility where you can enter monthly P&L account charges/releases on the P&L (Charge) line. These amounts do not go into Trade Creditors and do not inpact the cashflow. There is also a Payment/Receipt line if you wish to charge say a cost paid out in cash against this provision. It will appear on cashflow as a provision payment. On setting up a PROVISION Account you need to select a balance sheet account for the balance sheet side of the provision to be accounted for - For Debt Provisions choose a Type BSL Account - meaning provision will appear under Trade Debtors in Statutory Balance Sheet - For Stock Provisions choose a Type BST Account - meaning provision will appear under Stock in Statutory Balance Sheet - For Other Cost Provisions choose a Type BWD Account - meaning provision will appear under Other Creditors in Statutory Balance Sheet 5)%PROVISION This is the same as the PROVISION method with the additional ability to set the monthly provision charge as a % of another account 6)The %ACCT,%SALES These methods give you a facility to set a % of another account(s) on further drilldown 8)%PBT Corporation Tax Accounts can be set to %PBT for automatic accrual at an effective tax rate(see below). If under Admin-Setup you select 'Set CT payments as Month10' then when you recalculate the system adjust payment profile to be 9 months and a day after year end. 7)%EMP Used to set an account up as a % of Employment Accounts ie those with METHOD set to EMPLOY or those of TYPE 'OVE' PAYE/NIC accounts (TYPE BPT) should be set as this METHOD to automatically accrue the PAYE/NIC Liability. 9)EMPLOY Used to identify Employment Cost Accounts not rolling up under overheads ie the OVE Type (eg Employment costs in Cost of Sales). They will then be included in %EMP calculations