Data entry

After having completed the rules setup, it is necessary to load the data needed for the planning process and the various activities/operations that can be performed on them in order to obtain the balance sheet and P&L variation forecasts. In particular, it is necessary to input data for

  • an Initial Balance Sheet. The Initial Balance Sheet represents the most recent actual balanced account on which basis the user wants to run the financial simulation; all of the balance sheet entries arising from P&L entries, the collection/payment of receivables and payables, any balance sheet accounting entries, L/T financing, fixed assets etc. are applied to it.

  • a Projected P&L. The Projected P&L represents a P&L budget compiled up to the EBITDA and is the starting basis for making the system calculate the accounting, payment and generation of VAT. The calculation of direct taxes and financial interest is also based on these calculations.

The P&L can be:

  • projected: this reports the forecast P&L values (both gross and intercompany) at least up to the EBITDA, since everything below that margin (depreciation, short- and long-term financial expenses/income, taxes etc.) can be calculated directly by the system.

  • actual: this reports all those P&L values for the previous year the effects of which must be applied to the initial balance sheet.

  • the third input data item necessary for financial planning, i.e. the item representing the other accounting entries related to management. Those entries, called Objects, represent all those operations not typically contained in an operational-type P&L Budget / Forecast; for example, the investment plan, the L/T financing plan or specific entries such as the use of a fund.

  • and potentially Projected variations. Projected variations allow the user to associate an accounting rule with a balance sheet account (standard or variation), while in most cases an accounting rule is associated with a P&L. By managing projected variations it is possible to make balance sheet accounts, that cannot be managed from the Initial Balance Sheet window, follow specific curves.

Tagetik allows the user to configure the origin of a data item, which must be considered as input origins for the projected P&L, the projected variations and the initial balance sheet. In the data entry phase, the system only displays data that is labelled with an origin included in that list. The management of those origins is accessible from the administrator-user’s web interface by following the path Setup & Admin > Data Processing > Cash Flow Planning > Advanced > Input origins configuration.

Navigation panel> Data Processing > Cash Flow Planning > Advanced > Input origins configuration.