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FAQs No1 Insert new financial row command

Insert financial row command

The 'insert financial row' command in VT is not appropriate for the charity templates.

There are several reasons for this:-

1) There are additional columns both in the SOFA and the Trial balance which need to be linked to each other, because of the restricted funds analysis.Inserting new rows may alter the analysis.

2) The rows in the trial balance are used to automate the much more intricate interlinking of figures than would be the case in a conventional set of accounts. For example, additions to PL items may or may not alter figures in the SOFA, and additions in the SOFA may or may not alter settings in the PL.

3) The data in the Trial Balance may be used in more than one way by different sections of the accounts, because of the requirement for analysis by activities.

4) There are various 'proof lines' proving the integrity of the data in the accounts, and indicating when they are out of balance. Adding new lines to the TB may affect this validation procedure.

Users will, however, note from the VT help files, that the 'insert new financial row' is only in fact an ordinary Excel routine, using 'insert row' on the file menu of Excel, followed by the autohide command. This means you can precisely mimic the 'insert new financial row' command using Excel commands, if you wish to do so. This is clearly explained in the VT help files.

However, if you do this, you should be very careful, again for two reasons :-

a) The SORP is very prescriptive as to the contents of the layout.

b) If new rows are inserted in the TB then you should ensure that the figures are picked up in all occurrences in the templates, as for many items there will be 'treble' entry as compared to 'double entry'.

For this reason, we have found that most users prefer to use manual Excel techniques that do not alter the Trial Balance in any way.

For example, if a user wishes to add a new line in the creditors analysis, then the way we would do this is as follows :-

a) Use the insert row command in Excel to insert a new row at the specific point.

b) Establish which of the existing figures in the creditors includes from the Trial Balance the figures you want to disclose separately.

c) alter the formula in the exisiting row and the new row, so that the total of the schedule of creditors does not alter. For example, if you wish to insert a heading 'Other', for 6000, and before your adjustment the 6000 is included in trade creditors, then put 6000 in the 'new 'Other ' row and alter the formula in trade creditors by placing ' - 6000' after the formula.

d) having done this check the rest of the accounts carefully, to see there has been no amendment to any other figures as a result of 'treble entry' - ie check that the profit, and movement in funds and the balance sheet funds all agree, and that cross referenced notes all agree.

This may sound complicated, but in practice it is not so.

We would very strongly advise against adding new rows to the Trial Balance unless you are absolutely certain of the effects.

If you find that additions are required for specific disclosure reasons, then please let us know and we will issue an amendment to the templates.

 

 
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