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Account

The account is one of the obligatory dimensions that identifies the data in Tagetik. Any measurement or metric subject to analysis, whether financial or statistical, can be opened on the account dimension. Statistical accounts are typically used in management reporting, such as drivers in allocation processes or in the creation of indices (earnings per passenger on a boat, for example)

The list of accounts can be accessed from the administrator-user’s web interface by following the path Set-up and Admin > Dimensions tile > Account > List.

Navigation panel>Dimensions > Account > List

The attributes of the specific account for a financial planning process are:

IC management

Every time an amount (cost, revenue, asset) relates to a transaction between entities belonging to the same group, it is called an intercompany amount. In Tagetik, the administrator-user can decide whether or not an account can accept intercompany values by using the IC Management option present in the list of accounts.

By disabling this option, the system does not permit intercompany values to be entered, thus preventing the attribution of intercompany entries on the wrong accounts. For example, the Assets - Machinery account, which contains the value of the machinery possessed by an entity, does not have intercompany amount management enabled because, in general, possession is not shared.

In the presence of a single intercompany account, it is possible to tell the system to calculate the gross figure for that account automatically, by adding together all of the intercompany amounts already entered without using MD (Multidimensional) scripts. This takes place by enabling the Gross amount equal to the IC sum option in the accounts list “Rules” tab and, on saving, the system generates an “IC on Gross amount” basic calculation logic for the automatic calculation of the gross amount.

Typically, the IC Management option must be active for accounts that fall within the cash pooling perimeter in order to permit balances to be transferred from one entity to another. If this option is not enabled, it will not be possible to transfer intercompany amounts without any warning from the system, since the only way for it to activate the transfer is precisely by activating this option.

Attributes of the “Cash Flow Planning” tab

In this tab, for each account of a standard nature, all of the necessary contra-entries on which the system performs the planning entries are defined in terms of variation. All Cash Flow Planning data processing takes place on the variation accounts and subsequently, via the control groups, the system provides the data on the standard-type account, as well as on the variation account.

The fields to be managed are:

  • Debit/Credit Variation Account . Variation account on which the system registers variations (increases or decreases) in standard-type balance sheet accounts. This account can be used when defining accounting models and is usually used on balance sheet accounts to specify the variation account with which to perform the initial collection/payment, or, for accounts linked to asset-type objects, to specify the variation accounts linked to events;
  • Receivable/Payable Variation Account: Credit/Debit . Receivable/Payable variation account generated by a cost/revenue. This account can be used when defining accounting models and is usually used on P&L accounts to indicate the variation account of the receivables or payables entered;
  • Liquidity variation account: Credit/Debit. Bank account variation account on which the financial events (payment or collection) related to the account in question are registered. This account can be used when defining accounting models and is usually used to indicate the cash flow account to be increased or decreased when a collection or payment occurs.
  • Credit/Debit Accrual Variation Account. Variation account on which the system registers the accrual of a cost/revenue in cases of deferred billing.
  • Other Credit/Debit Account. Additional accounts to those already available can be indicated in this field. For example, for the accounting model related to assets, the Depreciation account is typically indicated in this field, or it is used to manage a capital gain or loss related to an asset inserted previously;

  • Other Accrual Account: Credit/Debit. Account used for:

  • generating the balance sheet contra-entry for accounts which do not have a financial entry (depreciation, for example)

  • generating the reference entry of a cost/revenue in the case of deferred billing
  • Enable Revaluation/Devaluation. This allows the user to label accounts for which, at the end of every month, the end-of-period FX rate valuation is performed;
  • Revaluation/Devaluation Account: Credit/Debit. By default, the system books the credit/debit FX rate difference related to the end-of-period evaluation on the “FX rate difference account: credit/debit for revaluations” indicated in the generic cash flow planning rule (accessible from the administrator-user’s web interface by following the path Setup & Admin > Data Processing > Cash Flow Planning > Generic rules). Navbar > Data Processing > Cash Flow Planning > Generic rules)This default can be overridden for each individual account by defining this attribute;

When generating forecast double entries on variation accounts, the financial planning model needs the balance sheet to be subject to variation i.e. the following variation accounts to have been opened for all standard balance sheet accounts:

  • an initial balance variation account – on which entries are made on the basis of the final balance for the previous year with carry forward data processing
  • One or more variation accounts – which will contain all entries generated by the application of the accounting rules that have been set

During the cash flow planning data processing, the standard account is then calculated through the control groups logic.