Percent of Average Account

Enter data for an account as a percent of the average value of another account during the current and prior periods. This option can be used to forecast interest based on the average debt balance. The calculation engine in Strategic Finance supports certain iterative calculations, such as interest averaging and tax carryback/carryforward calculations. For example, Interest on Notes Payable can be entered as a percent of the average value of Notes Payable during the current and prior periods.

If you select this option, you must specify the Associated Account, which you choose in the Associated Account section of the Forecast Method dialog.