SPW Budgeted income and expenses affect the balance sheet, and thus the cash flow, in a straightforward way. The cash flow impact is based on the default Offset Account and Amortization Schedule associated with the GL account; alternatively, the default can be overridden on the budget line or the SPW line.
Activity such as loan principal payments, prepaid expenses, and deferred revenue may be budgeted, or may affect the balance sheet only. This activity has more complicated impacts on the Projected Balance Sheet and Statement of Projected Cash Flows. The information required for these lines is entered on Global SPWs, on the Cash Flow tab. There’s a specific template for each type of activity. All of these are part of the Martus budget, though some of them affect the budget and others affect the balance sheet only.
For these complex items, it is important to be sure to budget (if necessary) and also select the correct cash flow template. That cash flow template determines the information that you must enter and the impact on the balance sheet. The Cash Flow Templates and their Balance Sheet Impacts are listed here:
Template | Budgeted? | Balance Sheet Impact |
Loan Principal Payments | No | One non-amortized line and one amortized line |
Prepaid Expense Billing & Recognition | Yes | Two amortized lines |
Prepaid Expense | No | One non-amortized line and one amortized line |
Deferred Revenue & Recognition | Yes | Two amortized lines |
Deferred Revenue | No | One non-amortized line and one amortized line |
Fixed Asset | No | One non-amortized line and one amortized line |
Fixed Asset (checkbox for Sale) | No | Two non-amortized line and one amortized line |
Opening a Loan | No | One non-amortized line |
VAT and Sales Tax | Yes | Two amortized lines |
Balance Sheet Transfers | No | Two non-amortized lines |
Budget Line:
The default Amortization Schedule will be applied, but a line action can be utilized to override it.
Specific Examples
Use the link below to jump to the example
Prepaid Expense and Recognition
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