Types of Record
Forecast 5 provides a variety of types of record, each tailored to a specific requirement. For example, the information that must be entered about income is quite different from that entered about a financed asset.
Sales Record Types
o Income
Income records are the most frequently used record type for invoiced Sales Income. They appear separately on the Profit & Loss report, but their receipts on the Cash Flow report and trade debtors (accounts receivable) on the Balance Sheet report are combined with those of all other Income type records.
The benefit of using Income records is that you do not have to separate the Opening Trade Debtors (or Actual Trade Debtors when entering Actuals) between all the different records. Income records are always included in the Bad Debts and Factoring (when you specify these) and cannot be eliminated on Consolidation.
o Separately Invoiced Income Records
Use Separately Invoiced Income Records when:
- You require the receipts to be listed separately on the Cash Flow report.
- You want to specify that cash is received quarterly, four-or-six-monthly or annually.
- You want the Trade Debtors listed separately on the Balance Sheet report.
- You do not want the record to be included in Bad Debts or Factoring.
- The record is going to be eliminated on Consolidation.
- You want to select foreign currency bank to deposit receipts into.
o Accrued/Prepaid Income Records
Use Accrued/Prepaid Income records when income is accrued in the Profit & Loss Account before being received, or is received and subsequently credited to the Profit & Loss Account.
Cost Records
o Costs Records
Costs records are the most frequently used record type for invoiced Costs. They appear separately on the Profit & Loss report, but their payments on the Cash Flow report and trade creditors (accounts payable) on the Balance Sheet report are combined with those of all other Costs (and Stock) records.
The benefit of using Costs records is that you do not have to separate the Opening Trade Creditors (or Actual Trade Creditors when entering Actuals) between all the different records.
o Accrued/Prepaid Costs Record
You create accruals and prepayments in the Balance Sheet by specifying the amounts charged to the Profit & Loss account and by then specifying when invoices are issued. The Balance Sheet amounts are then automatically calculated from these.
o Stock Records Stock on Hand and stock made
These record types are covered in detail in the advanced training course.
o Wages Records – Net wages or gross wages
The most accurate way to enter labour costs is to use a Wage Record. There are two ways in which these costs can be entered into this type of record. Either specify the monthly net wages paid and the monthly deferred payments or create an Employee Group.
o Separately Invoiced Costs Records
Use Separately Invoiced Costs records when:
- You want the Payments listed separately on the Cash Flow report.
- You need to specify that cash is paid quarterly, four-or-six-monthly or annually.
- You want the Trade Creditors listed separately on the Balance Sheet report.
- The record is going to be eliminated on Consolidation.
o Separately Invoiced Stock Records
Use Separately Invoiced Stock records when:
- You want the payments listed separately on the Cash Flow report.
- You need to specify that cash for purchases is paid quarterly, four-or-six-monthly or annually.
- You want the trade creditors listed separately on the Balance Sheet report.
- The record is going to be eliminated on consolidation.
Other Income Record Types
There are three types of Other Income Records:
o Separately Invoiced Income Records
Refer Sales Record Types.
o Accrued/Prepaid Income Records
Refer Sales Record Types.
o Investment Income Records
Investment Income records are used for investment income that is not interest. You could, however, use Investment Income records for interest received that you want shown as Other Income on the Profit & Loss report.
Fixed Asset Record Types
There are four different types of fixed asset records:
o Fixed Asset Record
Fixed Asset is used for purchased or intangible fixed assets. You enter the asset value as well as the depreciation. You can also enter any additions or disposals of the fixed asset in this record.
o Financed Asset Record
Use a Financed Asset record when an asset is wholly or partly financed by a loan. This record type combines details of the loan, the asset value and any depreciation (covered later in this course).
o Calculated Loan Made Record
Calculated Loan Made record is for companies who make loans.
o Manually Entered Loan Made Record
Manually Entered Loan Made record is for companies who make loans.
Loan Records
The Loans section of the Forecast Explorer Record List is for loans received.
There are three types of records which can be entered here, Calculated Loan, Manually Entered Loan and Financing.
o Calculated Loan Taken Record
Calculates the interest and repayments of the loan automatically.
o Manually Entered Loan Taken Record
To enter the data manually when using the calculated loan taken is not an option.
o Financing
This is factoring of debtors or stock finance
Other Assets/Liabilities Records
This section of the Record List is for all assets and liabilities of a business except for:
- Fixed Assets
- Loans
Forecast 5 automatically generates the following records:
- Main Bank Account
- Provisions
- Stock
- Taxes
- GST
- PAYE
- Dividends
- Prepayments/Accruals
- Trade Debtors/Creditors
Therefore, this section is for any other records that are needed for your forecast.
The Other Asset/Liability Record Types are:
The Other Creditor/Debtor, Current Asset/Liability and the Long Liability record types determine where in the Balance Sheet the asset or liability will be shown.
o Other Creditor/Debtor
You use an Other Creditor/Debtor Record for an asset or liability that is to be included in the Other Debtors or Other Creditors sub-totals on the Balance Sheet Report.
o Current Asset/Liability (Working Capital/Finance) Record
A Current Asset/Liability Record is used for an asset or liability that is to appear in the Current Assets and/or Current Liabilities section of the Balance Sheet Report.
Selecting between Working Capital and Financial will determine where changes in the value of the asset/liability are shown in the Funds Flow report.
o Long Liability (Working Capital/Finance) Record
You use a Long Liability record for a liability other than a loan received or grant that is to appear in the Long-Term Liabilities section of the Balance Sheet Report.
Selecting between Working Capital and Financial will determine where changes in the value of the liability are shown in the Funds Flow report.
o Loan Made and Manually Entered Loan Records
Use these types of records for loans made, where the asset is considered current rather than Long Term, e.g. Short-Term Loan.
Capital Account Records
In the Capital Accounts section there are two record types to choose from:
o Capital Reserve
Use a Capital Reserve Record to create a new capital account, shown separately in the capital analysis section at the bottom of the Balance Sheet Report.
o Capital Change
Use a Capital Changes Record to increase or reduce either the in-built Capital Record or the Retained Earnings Record.