When calculating the Cashflow and Balance Sheet Forecast reports Calxa makes calculations using your P&L and Balance Sheet budget figures. Since this is the base of the calculations it is important to ensure that the budget used is balanced. Accounting rules dictate that debits must equal credits and the same can be said for your budget. Calxa will use your Default Accounts and Cashflow settings to keep most P&L budgets in balance. For more complex budget scenarios it is possible that the budget will become out of balance. Specifically, this can occur when using a cashflow type of None or Schedule. For more information on these settings refer to support note – Preparing a Cashflow Forecast. The Discrepancy Analysis report can be used to check for budget balancing discrepancies and to isolate problem budget accounts.
Running a Discrepancy Analysis Report
- Access the report list by clicking on the Reports button.
- Select the Discrepancy Analysis report under the Forecast Reports header.
- Select the Organisation, Budget Source, Starting From period and Budget Version you wish to analyse.
- When you are satisfied with the report settings simply click on the Display Report button.
Interpreting the Report
We will use the example below to discuss the properties of the Discrepancy Analysis report. The before example shows some obvious discrepancies which have been resolved in the after example. As mentioned earlier discrepancies can occur when budgeting on accounts with a cashflow type of none or schedule. This is not the case for all accounts with these cashflow types and this is why the discrepancy report isolates only the accounts of interest, in particular the accounts with a cashflow type of none or schedule where they are not a calculated account.
In the previous example you can see there is a discrepancy on the bottom line. If a budget is balanced then this value should be zero. This value is calculated by summing all of the debit values and subtracting all of the credit values.
Accounts are grouped by cashflow type and then by account type. Grouping them by cashflow type allows you to first check that the correct cashflow type is assigned and clearly outlines why this account requires special consideration. It is for this reason that the accounts are not grouped by debits and credits. If discrepancies exist your first check should be that the correct cashflow types are assigned.
Once you are sure the cashflow types are correct you should try to group the accounts into pairs or smaller groups that should individually have a balance of zero. In the example above let’s look at grants, depreciation and accrued expense as our smaller groups.