Setting up an Adjustment for Changes Between Balance Sheet Accounts

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In Planning Maestro, you can analyze your company’s data and create budgets and forecasts. After your Actuals (historical data) are uploaded into Planning Maestro, you can build your budgets in Planning Maestro.

One part of your budget is your Adjustments. You can use the Adjustments application to budget for several types of transactions, including changes to Balance Sheet GL Accounts.

Example.png Example: Your company plans to buy $5,000 worth of inventory. You can record this purchase in the Adjustments application as a $5,000 debit to an Inventory GL Account and a $5,000 credit to a Cash GL Account.

This document shows you, a Planning Maestro user, how to set up an Adjustment involving changes to Balance Sheet Accounts.

Adding Changes between Balance Sheet Accounts

To learn how to find the Adjustments application and set up a basic Adjustment, see Managing Adjustments.

Step 1: First, add this transaction as a line item in Adjustments.

Example.png Example: A purchase of new inventory.

Step 2: Open the Properties pane for this line item.

  • In the Adjustment properties section, next to Adjustment Increase Debit/Credit, select either Debit or Credit.

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  • Debit – Select this option if this Adjustment debits the GL Account you selected on the main working screen (such as a purchase of new inventory that debits an Inventory account).
  • Credit – Select this option if this Adjustment credits the GL Account you selected on the main working screen (such as fee payment that increases an Accounts Payable account).

Step 3: Decide whether this transaction needs to go through a Relief GL Account, or an intermediate account before it reaches its final destination (such as an Accounts Payable account).

  • To use a Relief GL Account, click on this toggle switch to turn it to the ON position.

A10e.png

Info.png Please Note: This Recognition Schedule, if enabled, spreads out the amount as it debits or credits the Relief Account.

  • Click on Immediate to open this dropdown menu and select a Recognition Schedule (method for recording how/when this adjustment debits or credits the Relief GL Account).

A9a1.png

Step 4: Click on the  Relief GL Account dropdown menu and select a Relief GL Account (the intermediate or holding GL Account for the transaction before it reaches its final account – for example, Accounts Payable for a bill payment that eventually ends up in another GL Account).

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Step 5: Click on the Adjustment Decrease GL Account dropdown menu and select the GL Account this transaction decreases (the debit account it credits, or the credit account it debits).

Example.png Example: If this Adjustment line item represents the purchase of inventory and you plan to pay with Cash, you would set the Adjustment Increase Debit/Credit to Debit and select a Cash account for the Adjustment Decrease GL Account.

A10f.png

This line item now represents a transaction between Balance Sheet accounts. Open the Details pane to see how this line item debits and credits these accounts.

Example.png Example: In the screenshot below, the transaction debits an Inventory account (S-1200) and credits a Cash account (S-1100).

A1e.png

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