Generating Financial Statements

Configuration Process Generating a Financial Statement Filtering by Account during Financial Statement generation Drilling into the details of a Financial Statement Generating consolidated Financial Statements across multiple company databases FAQ & Diagnostic Tips

Financial Statements are a quick way for management, auditors, and investors to analyze how a company is performing. Each different financial statement has its own purpose. For example, an income statement is a financial report that shows an entity's financial results over a specific period of time. On the other hand, a balance sheet is a report that summarizes all of an entity's assets, liabilities, and equity as of a given point in time. Both reports are used by the financial department and community to determine a business’ health.

In DEACOM, Financial Statements are not restricted to printing classic Balance Sheets or Profit and Loss Statements. Although that is their typical use, they can be used much more broadly for any reporting based on General Ledger data. For example you might want to create a statement for a particular department and you can restrict that statement to certain users. If desired, Financial Statements may be published via the Publish Data feature in the system. More information on that option can be found via Building BI Pages.

GAAP and SOX requirements

DEACOM is configurable in a way that supports IFRS, GAAP, and SOX audit requirements. From inventory valuation, foreign exchange gain/loss consolidation, revenue recognition and beyond, DEACOM’s functionality enables companies to comply with these accounting rules and regulations.

Transactions made within DEACOM are directed to GL accounts based on the configuration of the business utilizing the ERP system. These transactions can be reported on through configured Financial Statement reports including Balance Sheets, Income Statements, Cash Flow Statements, and Statements of Retained Earnings. With multiple Financial Statements available, DEACOM has the capability to report in both IFRS and GAAP standards, if required. The Deacom implementation team will work with the company to ensure the required accounting compliance is met.

For publicly traded US companies that need to pass SOX audit requirements, DEACOM supports the audit trail, database-level security, and application-level security required to pass the accounting audit. The Deacom implementation team can work with the company to ensure that it meets the SOX audit requirements through the configuration of DEACOM.

Configuration

Chart of Accounts, Fiscal Years,  Financial Statement Groups , and Financial Statement Group Security must be configured prior to attempting to generate Financial Statements. Financial Statement Groups and Financial Statement Group Security work together to define which User Groups can run Financial Statements. First you must set up financial statement groups.  Then you grant users access to financial groups in System > Maintenance > Financial Statement Group Security. Additionally, transactions will have to be booked against several different accounts so that the financial statement has data to report on. The Understanding GAAP Principles page may be referenced for Deacom recommended best practices for financial statements.

Separate security settings exist to control which users can edit financial statement designs and which users can only print existing financial statements.

Note: Beginning in version 16.02, companies can determine which reports will be displayed, for which Users and User Groups, in the "Report Type" field on the Generate Financial Statement form when running Financial Statements. See the Grid Layout Security page for information.

Process

Generating a Financial Statement

Financial Statements are printable from Accounting > Financial Statements, for those who don’t need access to modify the design. The user can also Import/Export these statements in XML format Note also that financial statements may be published via the Publish Data feature in the system. For more information on publishing data, refer to Building BI Pages.

1. Navigate to Accounting > Financial Statements.
2. The system will display the Print Financial Statements form, listing all the active Financial Statements available for printing.
3. Select the appropriate statement and click the "Run" button.
4. The Print/Export Statement pre-filter will be displayed. The pre-filter settings control not just how the report will be displayed, but also the type of financial information that will be included on the generated report. See the Financial Statements link above for detailed information on the fields and options available to the pre-filter.
5. Make the appropriate selections on the pre-filter. Statements can be run at any time and for any date range. Note that if the period has not been officially closed by Accounting, the statements will have little meaning as final accruals and entries will not have been made. Additionally, the correct beginning and ending date range must be known to run it for actual financial periods, which is most easily done by clicking on the calendar by the date that will identify the beginning period dates.
6. At this point, users can choose to print the report without viewing it first via the "Print" button, or to first view and then print the report via the "View" button.

Filtering by Account during Financial Statement generation

When generating financial statements, it is possible to filter for any one position. It is important that different numeric values indicate different companies, divisions, or departments at the same level within the enterprise. These distinctions are made in DEACOM via the Account Structure setup. To filter by a particular segment, you will use the position field in conjunction with the account mask.  For example if you wanted to run a report for company A, you would choose the position field company and the account mask to match company A.

Beginning in version 16.07.001, users can give each respective position a unique name via the Positions Name grid via Accounting > Maintenance > Account Structure. For example, if a position in an account represents the facility or division, then the Position Name Grid allows the name of the facility or division to print on the appropriate financial reports. Note that a position name may not be added when the position value is set to "1".

Drilling into the details of a Financial Statement

Once generated, clicking on a value within a statement such as a Balance Sheet will generate an Accounting Reporting "General Ledger Summary" report. Furthermore, clicking on a line within that report will generate a "General Ledger Detail" report. This drill down capability is in line with all other DEACOM reporting functionality and assists the user in locating the exact numbers that compose the figures seen in various reports and statements generated throughout the system.

Generating consolidated Financial Statements across multiple company databases

Version 16.07.001 offers theoption to consolidate Financial Statements from multiple company databases that share the same system database. The feature works by designating one company database as the Financial Master and linking accounts in non Financial Master databases to the appropriate master accounts in the Financial Master company database. The steps to enable this feature are detailed below.

1. Log into the company database/system that will serve as the Financial Master and navigate to System > Maintenance > Company Databases.
2. Select the appropriate database and click the "Modify" button.
3. Check the "Financial Master" box and click the "Save" button. (The company database designated as the Financial Master should have the appropriate chart of account setup. Some of the these accounts will be used as Master Accounts as detailed in the following steps.)
4. Log into one of the non Financial Master system and navigate to Accounting > Maintenance > Chart of Accounts.
5. Select an account that will be consolidated and click the "Modify" button to display the Edit Account form.
6. In the "Master Account" field select the account from the Financial Master database/system that will be linked to this account. Only accounts with the same currency and account type in the Financial Master database as the account being modified will be available for selection in this field. Note: Chart Group Security still is enforced in this field.
7. Complete any other fields as required on the Edit Account form and hit the "Save" button when complete.
8. Repeat steps 5-7 for all other accounts that need to be consolidated. If consolidating more than two company databases, repeat step 4 and then steps 5-7 for all necessary accounts.
9. Once complete, log into the company database designated as the Financial Master and generate any Financial Statement which contains the accounts that have been designated as the Master Accounts. Notice that the statements will consolidate all the transactions for the accounts in the other databases which are linked to the appropriate Master Account. Note: The consolidation option in DEACOM works for all Financial Statements as well as the following Accounting Reports: Trail Balance, GL Detail, GL Summary, and GL History.
   • Example of use:
     • A system contains two company databases: Company 1, Company 2. Company 2 is marked as "Financial Master".
     • In Company 1 there is an Account 1100-00. This account has Account 1100 as the Master Account.
     • In Company 2 exists the Account 1100. In Company 2, when running a Trail Balance report, the system will sum the transactions in Company 1 for Account 1100-00 along with all the transactions in the Account 1100 in the Company 2 database.

FAQ & Diagnostic Tips

Tips:

• Financial Statements can be published as a Favorite or Preview and added to Combined Reports in DEACOM.
• When determining an account's starting or ending balance, the system excludes GL Closing Entries that are dated after the first day of the earliest financial period within the date range.
• The YTD Budget (currbud) and Total Annual Budget (totbud) variables may be added to the grid for Period Financial Statements. The Total Annual Budget displayed is based on the financial year. The YTD Budget displayed is based on the budget to date if running in the current financial year. If running a period report for a previous year, the YTD Budget will be the total budget from the previous year selected.
• Beginning in version 17.00.024, the cash flow report logic was updated to check if the lines on un-received purchase orders have different due to dock dates than the header due to dock date, and if so use the line extension for the line as the payable amount grouped in the week of the line due to dock date and will not use the PO header amount.

When trying to print Financial Statements from the Pre-filter, it is going directly the printer and not giving me the choice for PDF or email. What is the problem?

You need to View the Financial Statement report first before using the "Print" button. The "Print" button from the Pre-filter works the same as the "Printer" button in the upper left hand corner of the screen and will print to your default printer.

I am receiving the following error when trying to generate a financial statement.

This error can appear if your fiscal year is not set up. Please check your Fiscal year set up under Accounting > Maintenance > Fiscal Years.

Why does the number on my Financial Statement not tie to the underlying GL detail?

If the amounts in the Financial Statement do not match the GL detail when you drill down, please verify that there is only one budget line per account in Accounting > Maintenance > Budgets. Duplicate budget lines will multiply the actual GL amounts. Also verify that each account is only listed once in the Financial Statement setup, or they will be counted multiple times.

A line on my Financial Statement is not showing the number I expected to see.

Double click on the number to drill down to the underlying detail. This will help you trouble shoot the setup of the line.

I am receiving a DEACOM Application Error after modifying a report grid when I try to run the report. How do I fix this?

Navigate to System > Maintenance > Grid Layouts. Locate and modify the grid that is causing the issue.

My Balance Sheet is showing the same amount for the current period (currper) as the year to date column (ytd). Why?

The Balance Sheet is the balance based on the report date. The year-to-date balance is also based on the report date and will match the current balance. Only one column is needed on a Balance Sheet for the report date.

Can sales forecasts be displayed in Financial Statements?

Yes, beginning in version 16.00.087, the "Forecast" field, available on the Generate Financial Statement form can be used to display forecast amounts when  the start and end dates of the statement are within the range of the Forecast and the revenue accounts specified on item master records contained in the Forecast match the revenue accounts specified on the statement line.

Tip:  Beginning in version 16.01.081, the "Start Date" and "End Dates" fields on the Generate Financial Statement form is available when choosing all report types, including period reports, to allow companies the option to run rolling period reports across Fiscal Years.