Example Overview & Links

Modified on Tue, 14 May 2024 at 12:35 PM

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