Assumption Worksheet Example

The following is an illustration of a very simple sales transaction that has been appropriately formatted for use with BizController. In this example, the default names of headers have been used.

assumption worksheet example

The second row contains labels that BizController can recognize. The cell b2 contains the default worksheet tag which tells the system that this row is the one to look for all the other headers.

Column D contains account numbers and Column C contains descriptions for each line and transaction. The account numbers must match the numbers from the Accounts list in the Master Data Module.

Column F contains optional scenario identifiers for each line. If they are used, we can define several variants or versions of the same transaction, each with different values and a different scenario id in separate rows. Scenario id’s used in defining assumptions must also be entered into the Master Data Module.

If scenarios functionality is turned on, those transactions which do not have a scenario id assigned to them will be considered as relevant to and included in every scenario. Thanks to this approach the User does not need to repeat the parts of a plan with assumptions which are identical in every scenario.

Column G indicates the side of a transaction, i.e. debit (D, Dt) or credit (C, Cr, Ct). An empty cell indicates debit. The debit/credit indication applies to the entire time series in a row. An equivalent result can also be achieved by reversing the sign of the respective figures entered.

Entries which affect the balance sheet (e.g. connected with payables, fixed assets, etc.) should only show the value of the transaction. Assumptions should not define account balances cumulatively; this is the core task of BizController and is done automatically as required by the system.

In the example above, there are two separate transactions for periods January to March 2011. Sales of two products has been entered as income and totalled in line 7. Line 7 here constitutes a debit counter- entry with the reference to the receivables account.

The latter two rows take care of the payment done by the trade partner for the previous purchase. Here, the receivables account is credited and a corresponding cash account is debited. At the end of each period, the resulting net cash flow is transferred to an account linked to the balance sheet (e.g. ‘cash and cash equivalents’ in assets). This process is done automatically.

Forecast cash flows are normally posted against an appropriate cash account and not a balance sheet account (‘cash and cash equivalents’) as is normally done in most accounting systems. As in the case of the transfer of the net profit from the income statement to the reserves on the balance sheet, BizController also transfers the net cash flow for each period to the equivalent ‘cash’ asset account. For these automatic period close features to work, it is necessary to define special accounts in the Financial Year Close Module (FY Close).