Testing Quick Reports
Once the report is generated, print it to determine if you have got the results you were after. (See Printing Financial Statements for information on printing financial statements.)
Add up all columns in the report to ensure that the balances and calculations make sense. It is best to have a complete period's worth of journals posted to the general ledger before testing the report. Cross check the results on this report with the figures in your trial balance. The trial balance will act as your main source of verification. If the report does not add up correctly then check:
1. That you have not included or excluded account codes from your group ranges. Ensure you have not doubled up on any account codes, for example. Double-check that the accounts you have assigned to each group actually belong in those groups.
2. Determine if there is a conceptual difference between your desired approach and quick report writer's assumptions. A compromise may be possible. If not, you may be unable to use the quick report writer or will use the quick report writer as a starting point for the construction of a different kind of report. The next section discusses the building of financial reports "by hand".
To assist you in determining why a report does not produce the results you expect, it is helpful to explain the assumptions made by the quick report writer. The remainder of this section will discuss how quick report writer goes about constructing financial statements.
Step 1
The quick report writer looks for a revenue group. It puts this at the top of the report if available.
Step 2
If a other income group has been specified, this is added next.
Step 3
If at least a revenue or other income group has been specified, a total revenue calculation is added next.
Step 4
If a cost of sales group has been specified, the cost of sales account or accounts are listed. Quick report writer then skips to step 10.
Step 5
If at least a revenue or other income group has been specified, a gross profit calculation is added that subtracts revenue from cost of sales. Quick report writer then skips to step 11.
Step 6
If an opening stock group has been specified, it is included next on the report.
Step 7
If a purchase group has been specified, it is included next on the report.
Step 8
If a closing stock group has been specified, it is included next on the report.
Step 9
Provided that opening stock, purchasing, closing stock and at least one revenue account has so far been included on the report, cost of sales is calculated. The formula that is used in the calculation depends on the report format requested. For example, for a year-to-date report, CAPITAL assumes that opening stock is held in the opening stock account (or accounts) for period 1, that total purchases is arrived at by adding together all periods up to and including the current period, and that closing stock is determined by the period activity (not year-to-date balance) for the current period.
Step 10
Gross profit is calculated if it can use the formula generated in step 4 or 9.
Step 11
If an operating expenses group is specified, it is included on the report next.
Step 12
A net profit calculation is added to the report if gross profit has been calculated and operating expenses have been included.
Step 13
If an appropriations group has been specified, it is included on the next report.
Step 14
If net profit has been calculated and an appropriations group has been included on the report, a retained earnings calculation is added to the report.
Step 15
If a current assets group has been specified, it is listed next on the report.
Step 16
If a fixed assets group has been specified, it is listed next on the report.
Step 17
If a current liabilities group has been specified, it is listed next on the report.
Step 18
If a non-current liabilities group has been specified, it is listed next on the report.
Step 19
If any balance sheet accounts have been included on the report so far, a net worth calculation is added to the report.
Step 20
If a CAPITAL group has been specified, it is listed next on the report.
Step 21
If a retained earnings calculation has been added to the report, a further calculation adds cAPITAL and retained earnings together. The result is placed at the bottom of the report and is shown as total equity.
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