Source and Reclassification - User Manual

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Description

To understand the importance of the features provided by the Menu: Source and Reclassification It is necessary to take into account that Leanus allows you to analyze not only the official balance sheets but also the analytical or provisional accounting situations.

Each balance sheet or accounting situation (the Source) is automatically (or through user intervention) reclassified on different schemes. In all cases the user can further customize the reclassification

The possible cases

The Source may already be present in Leanus, taken from Official Registers in real time (Chamber of Commerce, Spanish Registers) or related to an accounting situation loaded from your PC (Proprietary Source). The source structure can have different formats (XLS, XBRL, PDF, CSV etc). Leanus allows you to manage all the cases described below.

->Italian deposited balance sheets

They are already present on the platform and appropriately reclassified both on the Management Schemes and on the Other Schemes. Through the Menu: Source and Reclassification it is possible to view the source, view and modify the reclassification. Any balance sheets filed and not present in the platform can be uploaded and processed automatically via the +Load balances function

->Spanish deposited balance sheets

The balance sheets of Spanish companies can be uploaded and processed automatically via the +Load balances function

->Proprietary accounting situations in standard civil law format

Proprietary accounting situations in standard civil law format can be uploaded and processed automatically via the +Load balances function
Standard accounting situations are those whose format and data structure allow for automatic loading and processing without user intervention. Some examples:

Accounting statements in format XBR extension
Accounting statements in format PDF extract from the main management software (Zucchetti, Datev, TeamSystem, ...)
Accounting statements in format CSV extract from the main management software (Zucchetti, Galileo, ...)
Accounting statements in format XLS extracted from known systems (ModBilJ ICCREA, L1 – Leanus, L3 Leanus)

-> Proprietary accounting situations in NON-standard civil law format or not automatically processed by Leanus

Accounting statements in format PDF not automatically processed
Accounting statements in format XLS not automatically processed

Source Reclassification on Management Schemes

By Management Schemes we mean the ->Management Income Statement and >Balance Sheet (sources of loans) present under the Budget Analysis menu
Most of the analyses are based on management schemes (balance sheet ratios, Lean score, Financial Statement).

*The management reclassification also allows for benchmarking with other analyses even if based on different sources and for developing the business plan.

What is the Source and Reclassification menu for?

The Source and Reclassification Menu allows you to:

View Data Source (Menu: Balance Sheet or Accounting Situation), or the accounting statement that determines the entire analysis model. The data source can be an official balance sheet and/or an accounting situation uploaded by the user
View the OIC Financial Statement (Menu: OIC Financial Statement Deposited) official, if filed by the company
View and manage the Source Reclassification on the Management Schemes (Menu: Reclassifications on Management Schemes ->)
View and manage the Source Reclassification on the Civil Scheme (Menu: Reclassifications on Civil Scheme); the function that allows you to transform any data source into civil law format
Manually manage some inputs on the data source in order to, for example, correct the accounting period, some source values etc. (Menu: Manual Input Management)
View Detailed Schemas. Allows you to view the complete reclassified schemas of the source data

What is important to know

The source it is the balance sheet or the accounting situation that originates the analysis model
The reclassification (automatic or managed by the user) associates the Source items with the reclassification schemes of ->Management Income Statement and >Balance Sheet (employment sources) present in the "Financial Statement Analysis" menu
Every change carried out from the “Source and Reclassification/Source Reclassification on Management Schemes” Menu has an effect on ->Management Income Statement and >Balance Sheet (lending sources) and vice versa.
The accounts of the Source, if highlighted in yellow, it means that they are "connected" to an item in the ->Management Income Statement and >Balance Sheet schemes (sources of loans)
By clicking on the individual items of the schemes of ->Management Income Statement and >Balance Sheet (sources of loans) it is possible to view only the "connected" items
From the “Source and Reclassification/Source Reclassification on Management Schemes” menu it is possible to view both the “connected” and non-connected (blank) items (e.g. sub-accounts); it is possible to modify the reclassification by deactivating a "linked" item and reclassifying a blank item (e.g. the subaccounts of a total)
When you click on the “Update” the entire reclassification model is reworked and checked.
Il “Check management schemes” box allows you to check for any anomalies.
To change a Source number or the accounting period (not recommended), use the “Source and Reclassification*/Manual Input Management* menu

If you intervene on the Reclassification, remember that

The Profit present in the Source (intercepted automatically or via asterisked entries) must coincide with the profit recalculated in the scheme ->Management Income Statement. Reclassify the Income Statement first and, when the correspondence is obtained, proceed with the reclassification of the Shareholders' Equity
The Net Worth present in the Source (intercepted automatically or via asterisked entries) must coincide with the Net Worth recalculated in the scheme >Balance Sheet (sources of loans)
The Total Sources must coincide with the Total Uses (little green triangle)
Any anomalies are indicated in the "Check management schemes" box
Keep Sign = Reports the value of the Source in the reclassification scheme with the same sign present in the Source
Reverse Sign = Reports the value of the Source in the reclassification scheme with the opposite sign compared to that present in the Source
Remember that in ~~>Managerial Income Statement the costs are represented with the "~~” (minus); entries in “DARE” with the “-” (minus); entries in CAVE with the “+”
Remember that in the >Balance Sheet (sources of loans): Amortization Funds, Supplier Debts, Other Debts, Funds and Liquidity are represented with a "-" (minus); Fixed assets, customer receivables, other receivables, share capital, reserves and financial debts with a “+”

What is the purpose of the “Source Control, Reclassifications and Anomalies” checkbox?

The quadrature check boxes guide the user during the manual reclassification of the source or allow to identify some anomalies concerning the source.

The main control concerns the balancing of the Sources-Employment Balance Sheet. If it is not possible to obtain the quadrature, the entire line is highlighted in red; the control triangle is red.

To deepen the logic of operation of the quadrature control box click here

Contact the Service Center for assistance.

Procedure

To understand the meaning of quadrature checks CLICK HERE
To understand the meaning of “Keep Sign / Invert Sign” CLICK HERE
To view the reclassified data in each balance CLICK HERE
To change the reclassification from the Income Statement or Balance Sheet CLICK HERE
To upload an accounting situation from the Official Registers CLICK HERE
To upload a proprietary accounting situation in PDF or other formats CLICK HERE
To understand the meaning of asterisked items CLICK HERE

Information sheet

Download the fact sheet on the Source and Reclassification Menu here

Video pills

(updating)

Business cases

Reclassify a balance sheet or accounting situation

Dedicated Webinars

Beyond the Official Balance Sheet How to reclassify provisional data - Practical examples

Practical advice

If the financial statements are not complete with debit and credit details (eg Abbreviated Financial Statements) the Source of Employment Balance Sheet cannot be completed without user intervention and will be marked with a "Red" symbol.
Leanus manages most of the accounting structures developed by the main systems, even in PDF. Always try to upload the accounting situation in your possession to verify if Leanus is able to process it automatically. Otherwise, use the alternative procedures.
Manual reclassification using Model L2 and L2.1 (functions for loading accounting situations not managed automatically by Leanus) is reserved for expert users. If necessary, ask the Service Center for assistance

Source reclassification on Civil Law Scheme

Reclassification on the civil law basis is useful in cases where a non-standard source is used and you wish to obtain analyses that require a civil law basis as a source (e.g. Crisis Indicators, MCC Band, OIC Report, etc.

The Leanus statutory scheme has the advantage of having a complete structure of all the lines.

When is it necessary to reclassify the source on the statutory scheme?

If an analysis is carried out with a data source "not known to Leanus" it is useful to carry out the reclassification in the statutory scheme for:

obtain the indicators of the crisis code
obtain the Financial Statement in OIC format
get the MCC Band calculation

Once the civil scheme has been reclassified, from the same menu, it is possible to download the XMLs of each period and reload them. In this way, the automatic reclassification of the management schemes will also be obtained.

Source Reclassification on Other Schemes

Leanus envisages numerous further reclassifications of the source on Other Schemes in use in the banking system or customized according to specific user needs.

Insights

To learn more, please click here

How to reclassify 5 financial statements starting from 5 different accounting situations

What are the possible sources?

Any balance sheet or accounting situation in any format (e.g. XBRL, XML, XLX, CSV, and others). These types include, just to name a few examples, balance sheets downloaded from the Infocamere Business Register (XBRL), balance sheets downloaded from the main official suppliers (XML), accounting situations downloaded from the main accounting systems (e.g. XML Ago Zucchetti), etc.

What reclassifications can be managed?

from the Source to the Management Schemes
from the Source to the Civil Scheme
from Source to AQR scheme 1
from Source to Custom Schemes

Is it always necessary to reclassify manually?

NO. For all sources already "known" to Leanus or for those "saved" by the user, the reclassification of the source on the management schemes and on the statutory scheme takes place automatically upon loading. The user can change the default reclassification at any time.

The reclassification of the Source on the Management Schemes allows to obtain the complete analysis model (CE, SP, RF, Indices, Score, etc)

What are the sources for which it is not necessary to intervene on the reclassification?

XBR extension
XML Zucchetti AGO
CSV Zucchetti OMNIA
XML Various Italian Suppliers
XML Various Spanish Suppliers
XML Hungarian Suppliers
Leanus L1 model
AQR 1 Templates (excel)
PDF extracts from main management or application software (PDF Teamsystem, Zucchetti, Galileo, and others)

For all these sources, following the uploading of the prospectus (Analysis Creation / Update Procedures), both the reclassification of the Management schemes and the Statutory scheme are obtained.

When is it necessary to reclassify the source on the management scheme (primary reclassification)?

As shown in the diagram, the Leanus analysis model (which includes the Income Statement, Balance Sheet, Cash Flow Statement, Indexes, KPIs and much more, both for historical data and for the business plan, benchmark and groups) is based on management reclassification.

Therefore, in order to use the Leanus analysis model, the data source must be reclassified on the "management schemes". The control triangle on the left of the Company Name allows you to verify that the analysis model is complete (green). If the data source does not contain all the necessary information (e.g. Abbreviations), it will not be possible to obtain the balancing of the management schemes (red triangle), or the total Sources of the Balance Sheet will not be equal to the total Employment.

Some useful tips to correctly perform the manual reclassification from the Source to the Management Schemes

Analyzes the management schemes to be used for the reclassification (-> Management Income Statement and -> Source-Employee Balance Sheet)
Remember that the items in the reclassification drop-down menu correspond to the items in the management schedules (-> Management Income Statement and -> Source-Employee Balance Sheet)
Use the asterisked items at the bottom of the drop-down menu to select Net Profit, Net Equity, Total Assets and Total Liabilities.
Remember to click on "Update" after linking the items of the sources to those of reclassification
Remember that the items already reclassified are highlighted in orange; the asterisked items have no effect on the reclassification but are useful for checks and to complete some accessory schedules (eg. Cost of Personnel - Use of Third Party Goods - Costs for Services allow you to complete the Classic Income Statement scheme)
Remember that reclassification affects the entire line
First reclassify the Income Statement; when the net profit present in the source corresponds to the one calculated, proceed with the Balance Sheet
If the source was loaded with an L2 or L3 model, use the asterisked reclassification items to identify the Source data that do not affect the Primary reclassification but are useful for ancillary checks and analyzes (e.g. Net Income, Production Value, Cost of the staff, …)
For the management of signs, remember the conventions of the destination schemes (Purchases, Costs, Taxes, Payables, Other Payables, Funds and Liquidity are all represented with a minus sign)
Use the box above to check for any squaring. The checks indicate that some fields of the reclassification schemes do not contain any values and therefore it is preferable to reclassify them.
Once the complete reclassification has been obtained (green triangle), save the reclassification model. You can reuse it later also for other personal data.

The menu Source and Reclassification forms the heart of Leanus. This is the menu that allows you to link the items of the Source to the Reclassification Schemes

Download the PDF here to learn more DATA SOURCE MANAGEMENT

To view the menu, you need to access any company analysis.

Remember that (unless otherwise specified) all Leanus analyzes, indices, automatic evaluations and the entire graphic library are based on the reclassification schemes of the Management Income Statement and the Balance Sheet (Sources - Employment). Therefore, the changes to the reclassification of the Leanus schemes have an impact on all the analyzes present in Leanus, with the exception of those dependent on other models; consequently the changes to the reclassifications of the other schemes (Civil, AQR 1, etc.) they have no impact on the analyzes dependent on the Leanus schemes.

An example of attribution of the reclassification items to a statutory prospectus

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Useful tips to learn how to reclassify any source in the correct way

It's about the Webinars dedicated to the Reclassification on https://www.leanus.it/webinar/
View the next sections of the manual 5.2.1 - 5.2.10

Reclassification of Management Schemes: The most frequent errors

Reclassify the Balance Sheet first and then the Income Statement
Handle the sign the wrong way (See previous section)
Reclassify in a way false Financial Expenses (go to financial management), Personnel Costs (go to fixed costs)
Reclassify the Cash with the "+" sign. Liquidity is reclassified under Sources together with Financial Debts. In the Sources-Lending Scheme, Liquidity is shown with a minus sign

Why is it preferable to use the management scheme?

It can be used for any source regardless of the structure
It is easier to reclassify than the statutory scheme
It allows a better reading of the data
It allows to elaborate benchmarks and business plans

Learn More

How to load data without typing any number
How to reclassify the source in the Income Statement with Value Added and Contribution Margin
How to reclassify the source in the Balance Sheet to Sources and Use
How to use the quadrature check box
How to save / recall saved reclassification templates
How to complete the Leanus Schemes
How to handle asterisk entries
How to view and align the reclassification to your analysis needs

The reclassification of a chart of accounts for the analysis of creditworthiness with Leanus