| # Create financial statements To create a financial statement Step 1. Create a financial statement In the Financial Statements (tffst1500m000) session, click . The Financial Statements (tffst1600m000) session appears. Under Statement Details, enter the following: A code and description The code of the appropriate statement layout created in the Statement Layouts (tffst0110m000) session. Under Currency Details, enter the following: Report currency Calculation group Exchange-rate type If applicable, under Annexure Details, enter the following: The code of the appropriate statement layout created in the Statement Layouts (tffst0110m000) session. If required, change the setting of the Process Transactions field. Step 2. Define a statement account In a financial statement, you must define accounts that represent the items that must appear in a financial report. To define a new account: In the Financial Statements (tffst1500m000) session, double-click the appropriate financial statement. The Financial Statements (tffst1600m000) session appears. On the Statement Accounts tab, click . The Statement Accounts (tffst1520m000) details session appears. On the Statement Details tab, enter the appropriate statement account. On the Currency Details tab, enter the following: Exchange-rate type The ledger account to which the currency gain and loss is posted. Step 3. Link a statement account to the general ledger or cash flow statements At child level (level 0), statement accounts must be linked to ledger accounts or dimensions in the General Ledger module. You can link multiple ranges of ledger accounts and dimensions to one statement account. Link statement accounts to ledger accounts or cash flow reasons To get the correct values on the financial statements, the statement accounts must be linked correctly to the underlying ledger accounts and dimensions. To link a statement account In the Financial Statements (tffst1500m000) session, double-click the appropriate financial statement. The Financial Statements (tffst1600m000) session appears. On the Statement Accounts tab, select the statement account you want to link, and, on the appropriate menu of the same tab, click Specifications by Statement Account. The Specifications by Statement Account (tffst1521m000) session appears. Link statement accounts to ledger accounts or cash flow reasons and column You can link ranges of ledger accounts and dimensions to one specific column. You can use the Specifications by Account and Column (tffst1122m000) session. If ledger accounts are defined by statement account and by statement account/column, the ledger accounts defined by statement account/columns are used. The ranges defined per statement account are ignored. To link statement accounts to a specific column: In the Financial Statements (tffst1500m000) session, select the appropriate financial statement. The Financial Statements (tffst1600m000) session appears. On the Statement Accounts tab, select the statement account(s) you want to link to a specific column, and, on the appropriate menu of the same tab, click Specifications by Account and Column. The Specifications by Account and Column (tffst1122m000) session appears. Use existing ledger accounts or dimensions structures Instead of defining the statement account structure from scratch, you can use existing ledger accounts or dimensions structures as a basis for a statement account structure: For this purpose, the following sessions are available: Copy Financial Statements (tffst1260m000) To start this session, in the Financial Statements (tffst1500m000) session, select a financial statement, and, on the appropriate menu, click Copy Financial Statements. Copy Ledger Accounts to Statement Accounts (tffst1270m000) To start this session, in the Statement Accounts (tffst1520m000) session, on the appropriate menu, click Copy Ledger Accounts to Statement Accounts. Copy Dimensions to Statement Accounts (tffst1280m000) To start this session, in the Statement Accounts (tffst1520m000) session, on the appropriate menu, click Copy Dimensions into Statement Accounts. Step 4. Define specific accounts Not all statement accounts are linked to ledger/dimension accounts. When you compose a financial statement, you may consider using other types of accounts: Value Account to which ledger accounts and dimensions are linked. Text This type is used to add text to a report, and can be used in two ways: Add text Select the statement account, and click . A text area appears. Enter text as required. You can use several variables, accessible through the options in the text area. To print the text of the text account, in the Print Financial Statement Values (tffst1450m000) session, select the Print Text of Text Accounts check box. Add no text As a result, only a statement account with a description is defined. This is useful in case of an account text description that is longer than one line. Example Printing the accounts above will result in: Ratio The ratio account that is linked to a ratio (per column). In the Statement Account Ratio Specifications by Column (tffst1124m000) session, you can define the ratio that must be used for each column. Rounding Per column, you can define how values must be rounded. Due to these roundings, rounding differences may occur. For each statement account, you can define a rounding account. To assign the account to a range of statement accounts, on the appropriate menu of the Account Statement tab, click Assign Rounding Account. This will start the Assign Rounding Account to Range of Statement Accounts (tffst1220m200) session. Gain/Loss On the statement, you can define whether currency gains and losses must be used. If this is the case, a Gain/Loss account can be defined for each account. Gains and losses accrued on an account, are booked to this account. To assign this account to a range of statement accounts, on the appropriate menu of the Account Statement tab, click Assign Gain/Loss Account. This will start the Assign Gain/Loss Account to Range of Statement Accounts (tffst1220m300) session. Balancing Per column, you can define that the column must be balanced. The difference between the total debit and the total credit (all level 0) is booked to a statement account of type Balancing. Step 5. Check financial statements To check whether a financial statement has missing links or duplicate links to ledger accounts or dimensions, you can use the Check Financial Statement (tffst1250m000) session. To start this session, in the Financial Statements (tffst1500m000) session, select a financial statement, and, on the appropriate menu, click Check Financial Statement. Step 6. Statement columns The output of the statement is expressed in columns. Use the Statement Columns (tffst1105m000) session to list, add, and modify columns. Each column has a type indicator. If the column is of type Amount/Quantity, you must define a formula; optionally, you can define whether the column must be balanced. For each column you can do the following: Set a rounding method. Indicate how amounts must be shown in the financial statement. Enter conditions that specify which values must be ignored, for example, all amounts smaller than 0.05 Step 7. Define formula elements In the Statement Columns (tffst1105m000) session, via the appropriate menu, :you can start the Statement Column References (tffst1111m000) session, which allows you to define the formula's variables. Step 8. Set statement status to Approved When you set the status of a statement to Approved, LN performs the following checks: Has the linked layout been generated? Does at least one column exist? Have all variables been defined? Has at least one statement account been defined? Have all required gain/loss accounts been defined? Do ratio accounts have values? Does the currency of each ratio match the currency of the statement? Note Only if all the above checks are completed successfully, the statement can be set to Approved. Only approved (or fixed) statements can be used for processing or printing. Related topics Financial statements – overview Create statement layouts Process financial statement information Ledger account and dimension structure To set up the statement account structure To use dimensions |