Enter the timing of the receipt of payments for the opening Accounts Receivable balance to ensure a more accurate picture of when the cash is received. To edit the rule:
From the Customise Data tab click the Balance Sheet tab and expand the Current Assets section.
Click the AR rule button beside the Accounts Receivable account.
Select one of the following options:
‘Use existing revenue rules (in the Profit and Loss forecasts) to determine the timing of payment’. Go to step 6 ‘I want to enter the timing of payments for the opening accounts receivable balance.’ Go to step 4
Click Next to see your Accounts Receivable opening balance (representing the closing balance from your last actuals period).
Under the Opening Balance Profile heading, enter the required opening balance in the applicable Amount field(s). This opening balance profile will flow through to your Cashflow Forecast. Enter the timing of receipts that best reflects each revenue account you have populated. Enter up to 100% in the fields, for example, 60% ‘Current’ and 40% ‘+ 30 Days’.
Each bank account will be assigned a distinct bank rule. Choose which bank account will be your default bank account and set up an overdraft interest rate by following these steps:
From the Customise Data tab click the Balance Sheet tab and expand the Current Assets section.
Click the Bank rule button beside the bank account you’d like to edit.
Note: All bank accounts will have a distinct Bank rule button beside the Account Name.
If required, check the ‘Use this bank account as the default account for all rules’ checkbox.
If required, enter a rate into the Overdraft Rate (%) field. Note: Any corresponding interest expense will be displayed in the Profit and Loss. Impact of a Balance Sheet rule on the Profit and Loss Note: The bank rule will only calculate and post a journal for overdraft interest at this point in time.
Click Next to see opening and closing balances, and any interest expense calculated.
Note : If you do not select a default bank account, Spotlight will recognise the first bank account on your data grid and will set it as the default bank account.
Edit the Fixed Assets rule
Add fixed asset purchases by following these steps:
From the Customise Data tab click the Balance Sheet tab and expand the Non-Current Assets section.
Click the Fixed Asset rule button beside the fixed asset account you’d like to edit.
Under the Fixed Asset Options heading select an option:
Asset(s) paid for with Accounts Payable: Under Payment Schedule enter the timing of payments that best reflects when the assets will be paid, for example, 60% ‘Current’ and 40% ‘+ 30 Days’. Asset(s) paid for with Loan or HP: Under Payment Account select the relevant Loan or HP account. If you are creating a new Loan or HP account code, then you will need to add this new account before adding any new assets in the Asset Movements column. Add a Current Liabilities rule Add a Non-Current Liabilities rule
Click Next and enter the ‘at cost’ (less sales tax) amount of any purchase(s) and sale(s) (less sales tax) of fixed assets, into the Asset Movements column. Note: A positive figure represents a DR (purchase) and a negative figure represents a CR (sale).
Account for depreciation and accumulated depreciation by following these steps:
From the Customise Data tab click the Balance Sheet tab and expand the Non-Current Assets section.
Depending on the level of detail for your reporting, you may want to add an Account called Total Accumulated Depreciation. Alternatively you can journal depreciation by asset category.
Click the Add Rule button from the account category header.
Rule Name: Name your rule, for example, ‘Depreciation’.
From the Rule Type dropdown menu select Balance Sheet. The Balance Sheet rule allows you to prepare a journal between the account you have selected (at the top of the window - see ‘Select Account to Apply Rule to’), and the ‘Journal To account’ (at the bottom of the window).
Select Account to Apply Rule to: Select the applicable Balance Sheet, i.e. ‘Total Accumulated Depreciation’.
Journal To Account: Select the other account to apply your rule to, that is, ‘Depreciation’.
Click Next to enter the amounts in the Journals column. Note: All balances on this screen show positive as DR and CR negative. You would therefore enter CR negative amounts in the Journals column as this rule is attached to the Accumulated Depreciation account. The Movements column shows amounts journaled to this account via other rules. The Journals column allows you to create journals between the accounts selected on the previous screen.
You can use the Loan Amortisation rule to record both new and existing loans, and to record payment of the principal and interest. For details, please refer to the Loan Amortisation article.
Edit the Accounts Payable rule
Enter the timing of the payments for the opening Accounts Payable balance to ensure a more accurate picture of when the cash is paid.
From the Customise Data tab click the Balance Sheet tab and expand the Current Liabilities section.
Click the AP rule button beside the accounts payable account.
Select one of the following options:
‘Use existing expense rules (in the Profit and Loss forecast or scenario) to determine the timing of payment’. Go to step 7. ‘I want to override the timing of payments of the opening accounts payable balance.’
Click Next to see your Accounts Payable opening balance (representing the closing balance from your last actuals period).
Under the Opening Balance Profile heading, enter the required opening balance in the applicable Amount field(s). This opening balance profile will flow through to your Cashflow Forecast.
Enter the timing of payments that best reflects each account you have populated. Enter up to 100% in the fields, for example, 60% ‘Current’ and 40% ‘+ 30 Days’.
View your opening and closing balances, along with any movements and payments made. You can also enter adjustments by following these steps:
From the Customise Data tab click the Balance Sheet tab and expand the Current Liabilities section.
Click the Sales Tax/GST rule button beside the sales tax/GST account.
Enter any adjustments into the Adjustments field(s). Note: A positive figure represents a DR (i.e. a payment to the tax authority to reduce the sales tax balance) and a negative figure represents a CR.
Note: The Movements column shows amounts journaled to this account via other rules. The Payments column shows the cash payments that the system has calculated as being due for payment (or refund) based on the parameters you selected in the Settings part of your Forecast or Scenario(s). The Adjustments column allows you to adjust the timing of the Sales Tax payments due or to allow for additional payments to be forecasted to be paid to the relevant tax authorities.
Edit the payroll taxes (PAYG, PAYE) rule
View your opening and closing balances, along with any movements and payments made. You can also enter adjustments by following these steps:
From the Customise Data tab click the Balance Sheet tab and expand the Current Liabilities section.
Click the Payroll taxes rule button beside the sales tax account.
Note: The name of this rule depends on the region of the organisation, but will be the relevant name for the type of payroll taxes.
Enter any adjustments into the Adjustments field(s). Note: A positive figure represents a DR (i.e. a payment to the tax authority to reduce the sales tax balance) and a negative figure represents a CR.
Note: The Movements column shows amounts journaled to this account via other rules. The Payments column shows the cash payments that the system has calculated as being due for payment (or refund) based on the parameters you selected in the Settings part of your Forecast or Scenario(s). The Adjustments column allows you to adjust the timing of the payroll tax payments due or to allow for additional payments to be forecasted to be paid to the relevant tax authorities.
Edit the employer taxes (Superannuation, Kiwisaver, National Insurance) rule
View your opening and closing balances, along with any movements and payments made. You can also enter adjustments by following these steps:
From the Customise Data tab click the Balance Sheet tab and expand the Current Liabilities section.
Click the Employer taxes rule button beside the sales tax account.
Note: The name of this rule depends on the region of the organisation, but will be the relevant name for the type of payroll taxes.
Enter any adjustments into the Adjustments field(s). Note: A positive figure represents a DR (i.e. a payment to the tax authority to reduce the sales tax balance) and a negative figure represents a CR.
Note: The Movements column shows amounts journaled to this account via other rules. The Payments column shows the cash payments that the system has calculated as being due for payment (or refund) based on the parameters you selected in the Settings part of your Forecast or Scenario(s). The Adjustments column allows you to adjust the timing of the employer tax payments due or to allow for additional payments to be forecasted to be paid to the relevant tax authorities.
Edit the Income Tax rule
The Income Tax Liability rule allows you to enter anticipated income tax payments by following these steps:
From the Customise Data tab click the Balance Sheet tab and expand the Current Liabilities section.
Click the Income Tax rule button beside the Income Tax account. Note: the Income Tax rule will be attached to 1 income tax account only. You can edit the account that the rule is applied to by clicking on Select Account.
Enter any anticipated income tax payments into the Payments field(s). Note: A positive figure represents a DR (cash payments) and a negative figure represents a CR (refund). The Movements account records amounts journaled to the Income Tax account via the Income Tax Expense rule in the Profit and Loss tab.
When you first import, Spotlight Forecasting assigns the ‘default bank account’ status to a bank account in your accounts list. This means that all cash transactions will be posted to this default bank account. The bank balance, for this account, in the Customise Data grid fluctuates as a result of this.
Impact of a Balance Sheet rule on the Profit and Loss
When you add a new Balance Sheet rule to a Balance Sheet account and select a Profit and Loss account as the ‘Journal To Account’ within this rule, the journal is treated as an accrual journal with no cash impact.
When you select a Profit and Loss account as the ‘Journal To Account’, the icon to the left of the Profit and Loss account name on the Profit and Loss Customise Data grid changes. Click this icon to display the journal. This journal has flowed through from the Balance Sheet rule. The journal amounts displayed on this row are locked and can only be updated by editing the Balance Sheet rule. You can still edit the original account values in the Profit and Loss data grid.
Impact of a Balance Sheet rule on the Cashflow Forecast
When you add a Balance Sheet rule to a balance sheet account and your selected ‘Journal To Account’ is a bank account, the journals will be both cash and accrual journals. The cash impact of these journals is reflected in your Cashflow Forecast.
All amounts entered by the user in the Balance Sheet Default rules create both cash and accrual journals.
