The Red, Orange, Green symbol
As shown in the image, to the right of the WHEEL MULTIFUNCTIONAL, there is always a triangle that can take on the color Red, Orange or Green depending on whether the Leanus reclassification schemes (Management Income Statement and Sources-Employment Balance Sheet) are respectively, for each of the years available:
- Complete and reclassified correctly
- Completed through the use of adjustments
- Not complete or incorrectly reclassified
Therefore, if the reclassification schemes of the Operational Income Statement and Balance Sheet (Sources-Employment) are not complete or there are squares, you will see the TRIANGLE RED next to the multi-function wheel and a STAMP RED corresponding to each accounting period in which the anomaly occurred.
The control triangle can take on three colors:
- Verde, in the event that the main schemes of the Management Income Statement and Balance Sheet (Sources-Employment) have been completed correctly (they balance)
- Orange, when the schemes are complete, but the user has made at least one correction;
- red, the schemes are not complete or there are squaring or accounting errors in the source data or in the reclassification criteria
Therefore, before proceeding with the interpretation of the data, check the database (green or orange triangle) and the reclassification criteria
Positioning on the i, located next to the triangle, it is always possible to view detailed information on the meaning of the color assumed by the triangle.
As previously described, Leanus allows you to convert any balance sheet or accounting situation used as a data source in the management reclassification schemes, i.e .:
• Income Statement (Management)
• Balance Sheet (reclassified according to the Source-Use model)
Only when these management schemes are complete and formally correct (they add up!), Then it is possible to access the entire Leanus analysis library.
To complete these schedules, it is necessary to know the details of the following items which are not always available for abbreviated or simplified financial statements and which could be NOT available in other data sources:
Voices of the Asset
• Customer credits
• Other credits (tax, social security, etc)
Rumors of the Liabilities
• Payables to suppliers
• Other payables (tax, social security, etc.)
• Payables to banks
When these items are available, the reclassification is correct and the values are correct Leanus shows the green triangle.
The presence of the Red Triangle it can be due to several reasons:
- Abbreviated Financial Statements (the details of debts and credits are not present)
- Wrong reclassification (highlighted by the quadrature check box)
- Errors in source data (the input balance is incorrect in accounting terms)
The interventions to be carried out vary according to the reason that caused the anomaly.
Case 1. Abbreviated Financial Statements (the details of payables and credits are not present)
Although the details on payables and receivables are not present in the prospectus, it is possible that the information has been recorded in the Explanatory Notes
To check it:
• Update the analysis from Other Vendors (if the detailed information is present in the Explanatory Note, the supplier delivers an adjusted prospectus useful for completing the Leanus analysis)
• Or download the Explanatory Note (Company Data Menu or Purchase Documents), check the availability of missing data and use the correction columns to complete the diagrams and obtain the orange triangle
If the financial statements are abbreviated and it is not possible to complete the source of uses scheme, it is possible to use the Balance Sheet format (abbreviated bil) present under the menu Budget analysis.
Case 2. Incorrect reclassification (highlighted by the quadrature check box)
Log in to Reclassification menu and, using the information in the checkbox, check for any reclassification errors.
Before proceeding with the checks click on the button Reset Adjustments e Reset Reclassification to make sure you reset the default reclassification logics.
The squaring check box shows, in the example, that the squaring is not in the Income Statement data (Calculated and Imported Net Profit are the same) and not even in the Net Equity. The anomaly must therefore be sought in the balance sheet data.
In this case (as an example) it is sufficient to search for the squaring values within the source data (CTRL+ F o DCM+ R) to identify the item that has not been reclassified.
It is sufficient to also reclassify the Advances as Other Payables (opposite sign) and update to obtain the Green triangle.
In case of wrong data source, it will not be possible to obtain the balancing of the schemes using only the reclassification menu but it will be necessary to resort to the use of the correction columns.