9.12 Procedure: Include items of other payables in NFP

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Include in PFN items of other debts

From 18 January 2018 the reclassification form was further enhanced to easily manage even incomplete accounting statements or with missing detailed items.

When the accounting statement used as a source contains both the TOTAL and the SHORT-TERM and MEDIUM-LONG-TERM details for each balance, the management of the reclassification of the items to be included in PFN does not present any anomalies compared to the norm.

Indeed:
• items a SHORT TERM they will be reclassified as Short Term Loans
• items a MEDIUM LONG TERM will be reclassified as MLT Financing

Both items are present in the block of main reclassification items.

Often the accounting statements NOT show both the TOTAL that the detail a SHORT TERM and MEDIUM LONG TERM but only the TOTAL and OF WHICH IN MLT.

In this case, you need to resort to the reclassification items (necessary to handle some exceptions) placed at the bottom of the list.

The following procedure shows how to reclassify among financial debts, and therefore in PFN, some items of the source reclassified as Other Debts in cases where the source presents the Total debts and the of which in MLT, but does not explicitly state the value of the Short-term debts.

Procedure valid from 18 January 2018

In cases where the source presents the following structure

• Total Payables to Banks: 100
• of which in MLT: 30

Leanus also needs to calculate short-term debts. To do this, the accessory reclassification items are used
• Total Loans
• of which MLT Financing

In this way Leanus will calculate the value of the SHORT TERM debts by difference, which will be equal to 70.

If the user wants to include in PFN, for example, an item previously reclassified as Other Debts, it is sufficient to identify it and reclassify it using the main reclassification items, that is:

• SHORT TERM Financing
• MLT Financing
  

For operating procedures view the second part of the guide.

PROCEDURE 1 – From Other Debts to Short-Term Financing

To reclassify an item reclassified as Other Debt among Short-term Financing (and therefore include it in the PFN)
Log in to Leanus
Select the company you want to analyze
Go * Balance Sheet / Balance Sheet Analysis * e (or Balance Sheet for liquidity)
Click on Other payables
Identify the item (s) that you want to reclassify
Reclassify as SHORT TERM Financing
Click on Update

PROCEDURE 2 – From Other Debts to MLT Financing

To reclassify an item reclassified as Other Debts among MLT Financing (and therefore include it in the PFN)
Log in to Leanus
Select the company you want to analyze
Plan your trip Balance Sheet / Balance Sheet Analysis (or Balance Sheet for liquidity)
Click on Other payables
Identify the item (s) that you want to reclassify
Reclassify as MLT Financing
Update

The Balance Sheet for Liquidity is automatically updated in a manner consistent with the changes entered.