In normal routine we use general template to prepare a budget for project of duration 1 0r 2 years using number of sheets of excel.
After accepting this budget by detonator, Accountant will prepare a chart of account from this budget report.
I have design a new template with real budget data and plus chart of account.
this new template will show the budget data in one sheet also the chart of account of project.
enjoy the template by clicking below
suggestion are welcome.
Note: In this second example of cash flow preparation, I am using the actual data of PEPSICO.
How to prepare cash flow from the start, you can check my post previous https://mohsinpage.wordpress.com/2010/11/15/preparation-of-cash-flows-statement-using-direct-method-example-1/. In my previous post used additional information extracted from the analyses of two year balance sheet. In this tutorial I will analyze whole two year balance sheet and will extract additional information in the categories of Operating activities, Investing activities and Financing Activities.
Analyze the Balance Sheet and income statement:
Below is the balance sheet of PEPSICO of 2000 and 2001 and income statement .of 2001
CONSOLIDATED BALANCE SHEET FOR PEPSICO,INC., AS OF DEC 31
Millions of dollars
|Cash and equivalent||1649||1505|
|Other Current Assets||752||791|
|Total Current Assets||5853||5617|
|Property, Plant and Equipment||12866||11466|
|Less: Accumulated Depreciation||5990||4908|
|Net Fixed Assets||6876||6558|
|Net Intangible Assets||4841||4714|
|Liabilities and Shareholders Equity|
|Debt Due for repayment||354||202|
|Other Current Liabilities||3406||3381|
|Total Current Liabilities||4998||4795|
|Long term debt||2651||3009|
|Other long term liabilities||5398||5349|
|Common Stock and other paid-in capital||35||667|
|Total Shareholders equity||21695||20757|
|Total Liability and Shareholders Equity||21695||20757|
Cash flows statement prepared using two financial statements, 1st Income Statement and 2nd Balance Sheet.
Before preparing cash flows statement,
a. Analyze Balance Sheet
b. Reordering of Income Statements
a. Analyze Balance Sheet:
we will analyze balance sheet each account of current year and previous year. From balance sheet analyzing we extract additional information (AI) for cash flows statement and regroup these additional information in three major categories.
- Operational Activities
- Investing Activities
- Financing Activities
In this tutorial, I will not explain the analyzing of balance sheet, I just provide data in the form of additional information according to above three categories. I will use this categorize additional information for cash flow preparation directly. Read more…
What is Reconciliation in OpenERP:
When a customer or supplier invoices is created in openerp, the state of these invoices are open. This open state means;
- Supplier Invoices in open State: No payment is paid to supplier so far.
- Customer Invoices in open state: No payment is received from customer so far.
Assume we have enter a payment voucher for a supplier invoice or similarly we have enter a receipt voucher for a customer invoice. In this case these invoices are still represented as open state in openerp system and customer will receive a reminder letter.
A method to inform openerp system that on behave of supplier invoice or customer invoice, openerp system paid(payment voucher) or receipt(receipt voucher) amount. This process is called reconciliation between invoices and accounting vouchers. Remember when you reconcile invoice with voucher, the invoice state will be done from state open.
Creating Partners, Products, Chart of Accounts, Invoices(Customers and Suppliers), Partner Balances in OpenERP
In this tutorial i will show how to create partner with their account, Products (for Selling and Purchases), Chart of Accounts of a company, Customer Invoices, Supplier Invoices, Partner Balances etc and mush more.
Step 1: Create following chart of account; if you don’t know how to create accounts in openerp follow the post (https://mohsinpage.wordpress.com/2010/03/01/hierarchy-and-nature-wise-classification-of-accounts-chart-of-account-in-open-erp/)
In our normal accounting cycle we use some of accounting books like sale journal, purchase journal, bank book, expense journal, general journal etc.
Openerp supports 5 different journal types;
Sale: for sale and sale returns journals
Purchase: purchases and purchase return journals
Cash: Cash Book and bank Book
General: General Journal
Situation: Opening Balance journal
In coming few steps of configuration I will show how to create journals of type Sale Journal, Purchase Journal, Opening Balance, Bank Book.
To create new journal access Financial management → Configuration → Financial Accounting → Financial Journals (click new button)