Ratios

 Ratios can only be printed on the Profit and Loss Statement and the Profit and Loss Format Supporting Schedule. In order to be able to select ratios to print on a statement, you must define the basis upon which the ratios will be calculated for the layout.  This is done with the SR and ER, or start ratio basis and end ratio basis layout codes.  Put the SR layout code before the first account to be included in the ratio basis and the ER after the last account to be included in the ratio basis. When ratios print, a ratio figure will print to the right of each amount on the report.  The ratio figure will be that amount's percentage of the ratio basis.  Only one ratio basis can be defined per layout.

For example, a common use of ratios is to set the ratio basis to the total revenue (or total sales) on the Profit and Loss Statement.  The SR layout code would appear in the layout just before the first revenue account and the ER would appear just after the last revenue account.  An example of the section of a P and L Statement layout coded with ratios follows: 

Seq      Func

No        Code

0010     SR

0020     ACCT 03100‑00000-00000          Sales ‑ Product Line A   P/A:  A

0030     ACCT 03110‑00000-00000          Sales ‑ Product Line B   P/A:  A

0040     ACCT 03120‑00000-00000          Sales ‑ Product Line C   P/A:  A

0050     ACCT 03120‑10000-00000          Sales ‑ Product Line C   P/A:  A

0060                                                     PAT      Sales                D/C:  C   C:1  $:Y

0070     ACCT 03310‑00000-00000          Finance Charges            P/A:  A

0080     ACCT 03310‑10000-00000          Finance Charges            P/A:  A

0090     ER                                                                                D/C:  D   C:1  $:Y

0100     PAT                                                Finance Charges            D/C:  C   C:1  $:Y

0110     SUB1                                             Total Revenue                D/C:  C   C:1  $:Y

Then if sales were 90% of the revenue for the period, the ratio amount 90.00 will print for the current period ratio for Sales.  Total Revenue would have a ratio of 100%.

Rounding Errors

 If you choose to print your financial statement with the rounding option then you must be able to handle rounding errors that may occur in the statement.  There are two layout commands that can handle the rounding error.  The commands are the SUB and PRE commands. 

 If rounding is used and no PRE commands are used in the layout, then any rounding error on the statement will be included in each SUB command on the statement.  The rounding errors will be added to each SUB amount.  Following the SUB command, the rounding error will be set to zero and re-accumulated again. 

 The PRE command can also be used to print the rounding error.  This command allows you to print the rounding error at a specific location on the statement.  The PRE command will function similar to the PAT command.  Following the PRE command the rounding error will be set to zero and re-accumulated again.

Profit Centers

 The Profit and Loss Statement and Profit and Loss Format Supporting Schedule can be coded with multiple profit centers that is, with accounts that have different profit centers, using the RNG & RNG1 functions discussed earlier.  Then the layout can be selected to print with only accounts from one profit center.  Accounts with profit centers other than the one selected will then not be included in the statement.

In order to properly use this facility, certain obstacles must be avoided in setting up the financial statement layout. If you have all accounts coded as printing accounts, then on a consolidated statement (showing all profit centers) all the accounts will print.  A way around this is to use PATs.  For example:

Seq         Func

No           Code

0010        ACCT 05680‑00000-00000                                            Office Utilities                              P/A:        A

0020        ACCT 05680‑10000-00000                                            Office Utilities                              P/A:        A

0030        PAT                                                                                 Utilities                                         D/C:        D        $:Y

0040        ACCT 05630‑00000-00000                                            Travel& Subsistence P/A:        A

0050        ACCT 05630‑10000-00000                                            Travel& Subsistence P/A:        A

0060        PAT                                                                                 Travel& Subsistence                 D/C:        D        $:Y 

For this layout, selecting the statement to print for profit center 10000 will print the amounts for 05680‑10000-00000 and 05630‑10000-00000.  Selecting profit center 00000 will print 05680‑00000-00000 and 05630‑00000-00000.  If all profit centers are selected, then the first PAT will be for 05680‑00000-000000 and 05680‑10000-000000 and the second will be for 05630‑00000-000000 and 05630‑10000-000000.

You should avoid, however, summarizing one profit center into another profit center account.  For example:

Seq      Func

No        Code

0010     ACCT 05680‑00000-000000         Office Utilities                P/A:      A

0020     ACCT 05680‑10000-000000         Office Utilities                P/A:      P  C:1  $:Y

0030     ACCT 05630‑00000-000000         Travel& Subsistence      P/A:      A

0040     ACCT 05630‑10000-000000         Travel& Subsistence      P/A:      P  C:1  $:Y

 If you select this layout for profit center 00000, totals will not print for Utilities or Travel and Subsistence due to the fact that the (P)rints are on the accounts with profit center 10000.

In coding a P&L for multiple profit centers, you can take advantage of the fact that an account or PAT with a zero balance may be selected to not print on the financial statement.  For instance, if you have an expense, which does not occur for a particular profit center, you can still accumulate all the profit centers into a PAT.  Then, for the profit center that does not have that type of expense, the amount of the PAT will be zero and the PAT will not appear on the P&L.

Statement Of Cash Flows and Source and Application Of Funds

 The statements with types C (for Statement of Cash Flows), F (for State­ment of Changes in Financial Position), W (for Components of Working Capital) are part of the CF Type reports.  They use special processing and require a fixed structure to produce accurate results.  These reports can be automatically generated using the Generate SAF Layouts application.  (See separate Run Instructions.)

If you wish to manually create them or wish to modify automatically generated SAF layouts, certain structural requirements should not be violated or the statements will be incorrect.

To understand these statements, first you must be familiar with the SAF types.  (See Run Instructions for G/L Account File Maintenance.)

Statement Of Cash Flows

The Statement Of Cash Flows shows the effect and other cash equivalents of all the Balance Sheet accounts and net income upon cash during the current period and year‑to‑date.  It shows the net effect of the cash flow activities at the start of the period and year, and then a final cash ending balance.

All six SAF account types and the BSNI (Balance Sheet Net Income) should be included in the Statement Of Cash Flows Layout.  Thus all Balance Sheet accounts must be included.  All cash accounts must be coded with a SAF type of C on the General Ledger Account [G/L] file or cash will not be handled cor­rectly.  The cash accounts are summarized to produce a cash beginning balance so cash accounts will not print on the report.  Cash accounts must be followed by a subtotal to produce this cash beginning balance.  Any PATs coded for cash accounts will also not print.  Parenthesis control for the accounts is ignored in all the SAF reports.

There is a standard format in which the detail of the report appears, but the order of the report is flexible. The Statement Of Cash Flows report is created in the Generate SAF Layouts module in this standard format.  This format is in compliance with SFAS #95 and uses the indirect method of calculating net cash flow from operating activities.

Statement Of Changes In Financial Position

The Statement of Changes in Financial Position shows the working capi­tal using the non‑current assets and liabilities, net income, and non‑cash charges against income. This provides a picture of the effects of these accounts on the working capital.  The non‑current assets and liabilities are detailed in separate sections depending on whether they are sources or uses of funds.

The BSNI (Balance Sheet Net Income), non‑cash charges against income (N) and cash flow financing and cash flow investing accounts are included in the financial position changes.  The cash flow accounts all appear twice in the layout.  Once following the SSRC (Start Sources of Funds) then again following the SUSE (Start Uses of Funds).  The sources and uses must appear at the end of the report after the BSNI and sources requiring no funds outlay.  When the statement is printed, an account is printed as a source only if its amount is credit and as a use only if its amount is debit.  Consequently each account will only appear once on the statement.

So all cash flow accounts must be exactly the same in the sources as in the uses.

The recommended format and the format of the layout produced by the Generate SAF Layouts module is as follows:

First all the cash accounts, then all the current assets followed by a SUB1 for the assets increase or decrease.  Then all the current liabil­ities followed by a SUB1 for liabilities increase or decrease.   Finally, a SUB2 grand total for the net increase or decrease to working capital.