Balance Sheet & Cash Flow

Activity-based planning, cash offset accounts, balancing routine, and sub-schedules

Module 3Module Walkthrough25 min

📖 Tell How BS Planning Works Activity-based planning — inputs represent periodic changes, not end-of-period balances. The last actual period rolls forward automatically.

👁 Show Instructor Demo Facilitator opens BS Account Planning, demonstrates how entering activity affects the balance sheet, then runs the Balancing Routine and shows a balanced result.

✅ Do Explore BS Pages Open BS – Account Planning. Select an AR account — what planning method is set? What inputs appear? What is the closing balance for the last actual period?

ℹ Activity-Based Planning

All BS inputs represent periodic ACTIVITY — not end-of-period balances. If you enter nothing, the last actual balance rolls forward. Formula: Closing Balance = Last Actual Balance ± Activity. This means a zero-input BS still produces a sensible result.

Admin Setup

FIN – BS – Manage Planning Methods

Method	Best For
Direct Input	General BS accounts
Days Sales Outstanding (DSO)	Accounts receivable
Days Payable Outstanding (DPO)	Accounts payable / trade payables
Days Inventory Outstanding (DIO)	Inventory
Inventory Turns	Inventory (alternative to DIO)
Percent of A/R	Bad debt provision
Planned in CapEx	PP&E and accumulated depreciation — auto from CE model

FIN – BS – Manage Cash Offset Accounts

⚠ New in v2.0 — Critical

Cash Offset Accounts define how each BS account affects the cash balance. Every BS account must be categorized. Missing mappings break the cash flow statement. Cannot have more than one mapping per account — system flags duplicates.

Select the Primary Cash Account at the top
For each BS account, assign its offset category (increases in assets reduce cash; increases in liabilities increase cash)
System shows red error if a duplicate mapping exists — prevents double-counting cash

End-User Planning Pages

BS – Account Planning

Balance Sheet — FIN BS Manage Cash Offset Accounts mapping screen — Cash Offset Accounts setup — every BS account must be mapped here; missing entries break the cash flow statement

BS Investments sub-schedule — new investment entry with amount, start date, rate, and IS/BS/CF impact preview — BS Investments sub-schedule — enter investment details and preview the full financial statement impact before saving

BS Leases sub-schedule — capital and operating lease detail entry — BS Leases — enter lease term, amount, and type; system calculates ROU asset, liability, and P&L impact automatically

BS Balancing Routine — balance check showing Assets = Liabilities + Equity with green validation — Balancing Routine — run after each planning cycle to confirm Assets = Liabilities + Equity; red cells indicate mismatches to investigate

Entity level only — no department or operational dimensions
Dynamic inputs based on planning method (DSO → enter days; Direct → enter activity amounts)
Adjustment available for every method

Sub-Schedules

Page	Purpose
BS – Investments	New investments — enter amount, start date, duration, rate; see IS/BS/CF impact
BS – Intangibles & Financing	Intangibles, short-term debt, long-term debt instruments
BS – Leases	Capital and operating leases — enter details and see financial impact
BS – Joint Ventures	JV details and financial statement impact
BS – Equities	Opening share balance, planned share issuances

💡 Entity Alignment Required

For sub-schedules: the entity in the instrument must match the entity selector on the page. Misalignment means no financial data shows below the input. This is expected behavior — not a bug.

BS – Balancing Routine

Runs month-by-month sequentially — July must complete before August (retained earnings roll-forward dependency)
Runs for ALL entities, not just the one currently selected
After running: balance sheet should be in balance based on the inputs entered

💡 Run After Each Planning Session

Run the Balancing Routine after each planning session where BS activity has been entered. The BS – Validations report in Reporting & Analysis will show whether you're in balance.

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