Financial Statements

Financial Statement Layouts 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. In addition, generating multiple income statements over time allows users to analyze trends of the company's operations. 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. In standard cost mode, for example, it is often desirable to monitor variance accounts, such as Purchase Price Variance, Material Expense compared to Job Standard Material Cost, and Production Variance accounts. A financial statement can be designed that just reports on those accounts, in addition to the classic profit and loss report where those numbers are possibly overlooked when contained in the larger report. If desired, Financial Statements may be published via the Publish Data feature in the system. 

A financial statement is composed of rows, where groups of GL accounts are summed, and columns, where certain time periods of actual data, budgets, or comparisons are made. Rows and columns are controlled separately when generating financial statements, so that the rows for a detailed profit and loss report can be used first with a set of columns comparing the current period and year to the same period last year, and then with a different set of columns comparing the current period and year to the budget figures. All transactions related to Sales, Purchases, and Jobs, as well as Journal Entries posted to General Ledger supply the numbers seen on a Financial Statement.

The design and maintenance of financial statements is handled within the main Deacom application via a separate transaction from the generation process. Financial Statement Groups and Financial Statement Group Security work together to define which User Groups can modify and generate Financial Statements. Each Financial Statement that is created is assigned to a Financial Statement Group. Financial Group Security is where those groups are assigned to User Groups. 

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.

System Navigation

  • Accounting > Financial Statements
  • Accounting > Maintenance > Financial Statement Layouts > "Modify" > "Generate Statement"

Financial Statements Form

This form lists all Financial Statements available for printing and contains a "Run" button, which opens the Print/Export Statement form for the selected record.

Generate Financial Statement form

Opened via the "Run" button or double clicking a record on the Generate Financial Statement form.

Button/Field/Flag Description

View

If clicked, generates a preview of the selected report.

  • Full drill down capabilities exist in these generated reports, allowing the detailed inspection of why certain numbers appear in the report.
  • On-screen reports do not show certain formatting features like bold font, underlines, and indents.
  • On the resulting report, users may click the "Print" button to print a copy of the report as it appears.

Print

If clicked, opens the Print To form, which allows the user to select a print destination.

Report Type

Pick list used to select the set of columns that will be used when generating the report, defaulting from the "Default Report" selection on the Edit Financial Statement form.

  • Deacom Version 16.02 includes the ability to create unlimited user versions of any financial statement report for users with permission and also expanded the security that determines which reports each user will see in this field.
  • Deacom comes with some standard statements with pre-defined displays as indicated below:
    • Fin Statement 1: Comparative Report. Displays the following information:
      • Current Month
      • Current Year to date
      • Budget Month
      • Budget year to date
      • Last Year – month data
      • Last Year – year to date
    • Fin Statement 6: Monthly Report. Displays the current year’s information with a column for each period.
    • Fin Statement 11: Position Report. Focused on current period like Statement 1, with a separate column for each general ledger segment.

Fiscal Year Group

Search field used to select a Fiscal Year Group.

Start/End Date

Determines what dates will be used to generate the values in the report.

  • These fields are available when choosing all report types, including period reports, to allow companies the option to run rolling period reports across Fiscal Years.

Run Period

Allows users to define what period, or what period up to, they want to evaluate when a financial period report is generated. Business Case: Accounting departments complete their work up to specific period in a given year or fiscal year. In the past, Deacom period reports ran on the current date. The addition of this field allows accounting users the option to define the period they have completed up to. The field is a search box with all fiscal year periods.

  • Only available when running the Period 1-5 reports. If the field is left empty, The system will use the current period.
  • The "annualizedytd" variable may be added to financial report forms to display the result of the Run Period specified. The logic used to calculate the "annualizedytd" field is indicated below.
    • Based on the Run Period specified, the "annualizedytd" field adds up all actual totals in periods beginning with the start date of the fiscal year as specified and ending with the last date of the run period.
    • Next, the system adds the budgeted amounts for the rest of the year (periods from last date of the run period to the end of fiscal year).

Notes:

  • If the Fiscal Year is changed, the system will clear the Run Period field in order for it to be re-selected.
  • The run period that is selected on the pre-filter uses actuals in the calculation.  Example, if run period is May (5/1-5/31), actuals for that date range are used and the budgeted amounts for June-end of fiscal year are used.

Run Period Start/End

Displays the run period start and end dates based on the selection made in the Run Period field above.

  • Only available when selecting a period type report.
  • The "runperiodstart" and "runperiodend" variables are available for use in user defined expressions.

Fiscal Year

Search field used to select a Fiscal Year.

  • Only available when a "Report Type" of Financial Statement 6-10 are selected, which are the Period reports.

Forecast

Search field used to select an active Forecast to be used in the generated report. 

  • Forecasts amounts are displayed in the generated report only when the dates in the "Start Date" and "End Date" fields 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.
  • Only available when selecting Statement Reports (Financial Statements 1-5) in the "Report Type" field.
  • The "forecast" field will need to be added to the Grid Layout for the report in order to display forecast amounts. The "forecast" field displays the dollar values summed from the specified forecast, grouped by revenue account. If the revenue accounts on the line and item master records do not match, the value in the "forecast" column will be 0.

Column Segments

Search field used to select a Chart of Accounts Position to use for separating columns on the report.

  • Only available when a "Report Type" of Financial Statement 11-15 are selected, which are the Position reports.

Position Filter

Search field used in conjunction with the "Account Mask" field to select a Chart of Accounts Position to filter on for the entire report.

  • If no selection is made, no filtering is done on the line and all accounts matching the base accounts requested will be summed to each line, unless filtered in the Financial Statement line definition.

Account Mask

Used in conjunction with the selection in the "Position Filter" field to define the one COA Position value on which to filter.

  • This field can accept the following wildcard operators: *, %, ?, _.
    • The ? and _ are used to indicate a single unknown character.
    • The * and % are used to indicate zero or more unknown characters.
  • For example, for a 3-digit position:
    • "50?" would match 500-509.
    • "5*" would match 500-599.
    • "?01" would match 001, 101, 201, etc. up to 901.
    • "*1" would match 001, 011, 021, 101, 111, 121, etc. up to 991.

Currency

Search field used to select the Currency to which results should be converted and displayed.

Display

Pick list used to dictate the display of decimal digits, defaulting from the "Display" selection on the Edit Financial Statement form. Options are:

  • Actual Values - Displays actual values with two decimal digits.
  • Thousands - Rounds results to the nearest thousand with no decimal digits.
  • Whole Dollars - Rounds results to the nearest whole dollar with no decimal digits.

Input Mask

Option to define an input mask, for example 999,9999.99, that will be applied to the fields returned when the Financial Statement is generated. Generating a Financial Statement will use the Input Mask if one is entered but still perform the same calculations as before based on the option selected in the Display field.

Separate Reports By Position

If checked, allows the printing of all company, divisional, or departmental reports with a single request. To use, select a "Position Filter", leave the "Equals" field blank, and check this flag.

  • When you separate by position, each time you close the form, the next position will open until you hit the last position.

  • When generating financial position statements and a position filter is included, the system will display the position name to the value in the filters. The position name in the filter is also included when performing a Excel export of the statement.

  • Beginning in version 17.01.098 the position name (from the "Position Filter" field) will be printed at the grid on the bottom of the report when this flag is checked.

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