Creating financial statements

1. In the Financial Statements (tffst1500m000) session, click New. The Financial Statements (tffst1600m000) session is started.

2. Under Statement Details, specify the following:

   • A code and description
   • Statement type: Financial Statement or Consolidated Statement
   • The type of accounting scheme
   • The code of the appropriate statement layout created in the Statement Layouts (tffst0110m000) session.

3. Under Currency Details, specify the following:

   • Report currency
   • Calculation group
   • Default rate type

4. If applicable, under Annexure Details, specify the following:

   • The code of the appropriate statement layout for annexures created in the Statement Layouts (tffst0110m000) session.
   • If required, change the setting of the Process Transactions field, which determines how statement data is retrieved.

To define a statement account:

1. In the Financial Statements (tffst1600m000) session, on the Statement Accounts tab, click New.

2. Specify the following:

   • Account number and description. This number determines the default order in which the accounts are printed. This order can be overruled by the print sequence.
   • Account Type (refer to the next section)
   • Sublevel
   • Parent Statement Account
   • Sign Switch
   • Exchange-rate type
   • The statement account to which currency gain and loss is written.
3. Save the line.

4. Optionally, open the line to specify additional details, such as:

   • alternate account
   • 100% account
   • rounding difference account

   • cash flow statement account: if selected, the values do not originate from GL accounts or dimensions, but from cash flow reasons.

     Note: Through the appropriate menu you can start sessions to assign these accounts to a range of statement accounts instead of manually assigning these accounts one by one.

Using account types

When you set up a financial statement account, you can use these types of account:

• Value

  Accounts to display the amounts from the linked ledger accounts and/or dimensions or cash flow reasons if the sub level is 0 (zero). If the sublevel is greater than zero, it displays the totals of the linked child accounts. If this value is selected, you must also indicate whether it is debit or credit. This determines if amounts are printed with a minus sign in case of a debit/credit value.

  For an example, refer to Example of account type Value.

• Text

  This type is used to add text to a report. Make sure you have selected a statement layout that has a value > 0 in the Position of Account Text field. This text account can be used in two ways:

  • With text

    From the appropriate menu, select the Text Editor command and enter text as required. You can use several variables, accessible through select ‘Start Zoom Session’ from the appropriate menu in the text area. To print the text of the text account, in the Print Financial Statement Values (tffst1450m000) session, select the Print Text of Text Accounts check box.

  • Without text

    As a result, only a statement account with a description is defined. This can be useful if the length of an account text description exceeds one line, or if you need a header on top of a list of statement accounts.

    Example

    

    Printing the accounts above will result in:

    

• Ratio

  If you select this account type, you must use the Ratios (tffst6100m000) session to define the ratio ( For more information, refer to Setting up ratios). In the Statement Account Ratio Specifications by Column (tffst1124m000) session you define the ratio that must be used for each column. This session can be started from the appropriate menu in the Financial Statements (tffst1600m000) if the ratio account is selected on the Statement Accounts tab.

• Rounding

  Per column, you can define how values must be rounded. Due to these roundings, rounding differences may occur. For each statement account, you can define a rounding account. To assign the account to a range of statement accounts, from the appropriate menu of the Statement Accounts tab, select Assign Rounding Account. This will start the Assign Rounding Account to Range of Statement Accounts (tffst1220m200) session.

• Gain/Loss

  On the statement, you can define whether currency gains and losses must be used. If so, a Gain/Loss account can be defined for each account. Gains and losses accrued on an account, are booked to this account. To assign this account to a range of statement accounts, from the appropriate menu of the Statement Accounts tab, select Assign Gain/Loss Account. This will start the Assign Gain/Loss Account to Range of Statement Accounts (tffst1220m300) session.

• Balancing

  Per column, you can define that the column must be balanced. The difference between the total debit and the total credit (all level 0) is booked to a statement account of type Balancing.

• Link ledger accounts and/or dimensions or cash flow reasons

  For statements of type Financial Statement, statement accounts of type Value and with sublevel 0 (zero) must be linked to ledger accounts and/or dimensions, or cash flow reasons. You can link multiple ranges to a single statement account. You have two options:

  • Link ledger accounts or cash flow reasons to statement accounts
    1. On the Statement Accounts tab, select the statement account and, from the appropriate menu of the same tab, select Specifications by Statement Account. The Specifications by Statement Account (tffst1521m000) session is started.
    2. Specify the ranges that you want to link to the statement account.
  • Link ledger accounts or cash flow reasons to statement accounts and columns
    You can link ranges of ledger accounts and dimensions to a specific column. If you have also done a setup per statement account per column, the ranges defined per statement account are ignored.

    1. On the Statement Accounts tab, select the statement account and, from the appropriate menu of the same tab, select Specifications by Account and Column. The Specifications by Account and Column (tffst1122m000) session is started.
    2. Specify the ranges that you want to link to the statement account.
• Link fixed values

  Sometimes you require values in your statement that are not available in the General Ledger, for example:

  • Balances from a year that is not available in LN.
  • The number of employees to calculate ratios such as Revenue per employee.

  Or you want to add the generic value this ratio has in your line of business for comparison.

  In these cases, no linking to ledger accounts and/or dimensions is required. Instead, you can add the fixed value:

  1. On the Statement Accounts tab, select the statement account and, from the appropriate menu of the same tab, select Statement Account Value by Column. The Statement Account/Column Specifications (tffst1123m000) session is started.
  2. Add the fixed values for the appropriate accounts and columns. Optionally, select Value modifiable, which allows you to change the value before you process the financial statement values.
• Link statement accounts

  For statements of type Consolidated Statement, statement accounts of type Value and with sublevel 0 (zero), must be linked to statement accounts. You can link multiple ranges to a single statement account.

  1. On the Statement Accounts tab, select the statement account and, from the appropriate menu of the same tab, select Statement Accounts by Consolidated Account. The Statement Accounts by Consolidated Statement Account (tffst1127m000) session is started.
  2. Specify the ranges that you want to link to the statement account.

Using existing ledger accounts, dimensions or statement structures

Instead of defining the statement account structure from scratch, you can use existing ledger accounts or dimensions structures as a basis for a statement account structure: For this purpose, the following sessions are available:

• Copy Financial Statements (tffst1260m000)

  To start this session, in the Financial Statements (tffst1500m000) session, select a financial statement, and, from the appropriate menu, select Copy Financial Statement.

• Copy Ledger Accounts to Statement Accounts (tffst1270m000)

  To start this session, in the Statement Accounts (tffst1520m000) session, from the appropriate menu, select Copy Ledger Acc. to Statement Acc..

• Copy Dimensions to Statement Accounts (tffst1280m000)

  To start this session, in the Statement Accounts (tffst1520m000) session, from the appropriate menu, select Copy Dimensions to Statement Accounts.

For each column, specify the following:

• Column description

  Enter text or select variables from the Text Variables (tffst0800m000) session.

• Column type

  If you selected Percentage over Accounts, make sure the accounts on the Statement Accounts tab have a value in the 100 Percent Account field.

• If Column Type is Amount/Quantity, a formula.
• Rounding method
• How amounts must be shown in the financial statement.
• Conditions that specify which values must be ignored, for example, all amounts smaller than 0.05.

• For statements of type Financial Statement, on the Statement Columns tab, through the appropriate menu, start the Statement Column References (tffst1111m000) session, which allows you to define the formula's variables for the financial statement.

  For each variable in the formula, specify the following:

  • Column Reference
  • Variable or Fixed Year/Period Range

    If you select Fixed, you must add the year and period in the Period Details section. From then on, this year and period will be used. To use another year and period, you must change this statement setup.

    If you select Variable, you can select the year and period when you process the financial statement. In the Period Shift fields you can indicate a number of years or periods for a specific column, if required. For more information, refer to Period From - Period Shift Correction.

• For statements of type Consolidated Statement, on the Statement Columns tab, through the appropriate menu, start the Consolidated Statement Column References (tffst1112m000) session, which allows you to define the formula's variables for the consolidated statement.

  For each variable in the formula, specify the following:

  • Company
  • Reference Type
  • Statement
  • Statement Column
  • Factor

LN performs these checks:

• Has the linked layout been generated?
• Does at least one column exist?
• Have all variables been defined?
• Has at least one statement account been defined?
• Have all required gain/loss accounts been defined?
• Do ratio accounts have values?
• Does the currency of each ratio match the currency of the statement?

Note

• Only if all the above checks are completed successfully, the statement can be set to Approved.
• Only approved (or fixed) statements can be used for processing or printing.