NetClose - Generate a Flux Scenario
Overview:
When a flux analysis is ready to be performed, the user will need to generate a flux scenario first.
This article will walk you through how to generate a flux scenario in order to perform a flux analysis.
Step by Step Process:
Navigate to NetClose > Flux Analysis > Generate Flux
The "Generate Flux Scenario" page is where the periods for comparison and the thresholds are determined.
If a saved source scenario has already been created, the "Source Scenario" field will show the saved source scenario with the pre-determined flux criteria that can be selected. Once selected, the criteria will automatically populate based off the saved source scenario.
If there is not a source scenario that meets the current flux criteria, fill out this page to meet your requirements.
The "Primary Information" section will require the user to determine the subsidiary and accounts that are used for the flux analysis. The user also has the option to run the flux analysis by account type.
The "Period Information" section is where the comparison periods are determined. This can either be done by selecting a general period or by choosing a "Start Date" and "End Date".
The "Options" section is where the thresholds are created for the flux analysis. There is the option to create thresholds by amount and/or by percentage. These can be for the balance sheet and/or the income statement.
The boxes titled "Or" means that if the threshold for percentage and amount are filled out for either the balance sheet or income statement. NetClose will trigger a required explanation for the account if EITHER of the thresholds are hit. If these boxes are not selected, then NetClose will trigger a required explanation for the account if BOTH of the thresholds are hit.
The "Large Transaction Threshold" gives the option to create a threshold for the individual transactions. If a transaction is larger than this threshold, the transaction appear in the flux analysis. These transactions may account for most of the difference in the account balance. This can help the user better understand what caused the change.
Once all the criteria is filled out, select Submit. This will then generate the flux analysis based off the information provided on this page.