Structure
Input Accounts and Calculated Accounts
Strategic Modeling accounts are Input or Calculated accounts. Input accounts are for manually entering data. Calculated accounts compute values with formulas using output from other accounts. You cannot convert accounts from one type to another except for User-defined Accounts.
Input Accounts
You manually enter financial data into Input accounts for historical and forecast periods. In forecast periods, use forecast methods or Freeform formulas to calculate values. Forecast methods dictate input data format in forecast periods. For example, if Sales uses the Growth Rate forecast method, you enter input data as a growth rate into the forecast periods.
Calculated Accounts
You cannot alter formulas in calculated accounts—they are fixed to retain accounting integrity. For example, the formula for the calculated account Net Income is modeled into Strategic Modeling; you cannot change it. Net Income is calculated using data entered into other Income Statement accounts.
Balance Sheet Related Accounts
Accounts relating to the balance sheet:
Funds Flow Accounts
All Balance Sheet accounts.
vxxxx.01.xxx
-
Increase in Accounts Receivable
-
Additions to Land
Non-Cash Adjustment Accounts
Selected Balance Sheet accounts only.
vxxxx.03.xxx
-
Fixed Asset Retirements
-
Amortization
-
Non-Cash Interest
Interest and Funding Accounts
Interest bearing accounts only.
vxxxx.05.xxx and vxxxx.06.xxx
Interest on Marketable Securities
Minimum Balance on Long Term Debt
Funds Flow
All balance sheet accounts have at least one related account — Funds Flow (.01).
Funds Flow accounts measures change in the related Balance Sheet account from one period to the next. Funds Flow accounts drive the Cash Flow Reports and the Funds Flow Statement.
Related Funds Flow accounts are automatically calculated in historical periods by subtracting the Balance Sheet amount in the prior period from the current period.
Account | Activity | Value Change |
---|---|---|
v2020.00.000 |
Accounts Receivable (current) |
$675 |
v2020.00.000 |
Accounts Receivable (prior) |
minus (-) 525 |
v2020.01.000 |
Change in Accounts Receivable |
= $150 |
In forecast periods, you may forecast the ending Balance Sheet amount (.0 account) or the Funds Flow amount (.1 account). Whichever you select, the other is calculated based on the forecasted account's output.
Adjustment Accounts
Some Balance Sheet accounts contain .03 adjustment accounts for increasing or decreasing the primary balance sheet account value by non-cash amounts (that is, Amortization of Intangibles decreases the Intangibles account balance).
Non-cash adjustment accounts in Strategic Modeling include amortization and retirement accounts. For example, Intangibles (2410.00.000) is a Balance Sheet account containing a related Funds Flow account, Additions to Intangibles (2410.01.000), and an adjustment account, Amortization of Intangibles (2410.03.000). When forecasting the Additions to Intangibles, the Intangibles balance increases in the forecast periods, and the balance for Intangibles decreases in the forecast periods by the amount in the adjustment account, Amortization of Intangibles.
Intangibles | v2410.00 | main account |
---|---|---|
Additions to Intangibles |
v2410.01 |
related Funds Flow account |
Amortization of Intangibles |
v2410.03 |
related Non-Cash adjustment |
In some templates, asset and liability accounts have related Acquired cash flow accounts (v2XXX.02), representing balance sheet account changes caused by special investing transactions (For example, acquisition or mergers.)
Interest / Funding
Interest-bearing and funding accounts have related accounts for interest associated with Balance Sheet account and funding minimums.
Notes Payable | v2520.00 | Main Account |
---|---|---|
Increase in Notes Payable |
v2520.01 |
Funds Flow Account |
Interest on Notes Payable |
v2520.05 |
Interest Expense Account |
Minimum Notes Payable |
v2520.06 |
Minimum Funding Account |