The “Analysis calculation” area under “Analysis” is only displayed if analysis years has been selected in the basic settings, i.e. if your company already exists. The balance sheet and income statement of the year(s) prior to the first plan year shall be presented. In principle, you can simply transfer the figures from your company’s balance sheet and income statement to the corresponding accounts. It should be noted that certain accounts are calculated automatically. This article explains which accounts are involved and how the automatic calculations come about:
Automatic calculations from “Investment analysis
Accounts concerned
Based on the entries in the “Investment Analysis” section, the following accounts are calculated automatically:
· Machinery and production facilities
· Furnishings and operating equipment
· IT systems
· Vehicles
· Real estate
· Depreciation
How does the automatic calculation work?
When adding an investment in the “Investment Analysis” area, it is necessary to specify what type of investment it is.
If, for example, the type “Machinery and production facilities” is selected there, the accounts “Machinery and production facilities” and “Depreciation” will be affected. If the type “Real Estate” is selected there, the accounts “Real Estate” and “Depreciation” are thereby influenced.
Example calculation:
Acquisition of a machine worth CHF 100,000 in 2020 with a useful life of 10 years.
Value of the machine at the end of 2020 is CHF 90,000 (acquisition value CHF 100,000 – depreciation 2020 of CHF 10,000)
Depreciation in 2020 amounts to CHF 10,000 (acquisition value CHF 100,000: 10 years (useful life))
Automatic calculations from “Economic efficiency analysis
Accounts concerned
The following accounts are calculated automatically on the basis of the entries in the “Economic efficiency analysis” area:
· Net sales
· Materials/services purchased from third parties
How does the automatic calculation work?
In the area “Analysis of profitability”, the products/services sold in the past are recorded. Furthermore, it is calculated how high the individual sales per product/service were. These sales are accumulated and included in the income statement.
Example calculation:
· Product/DL 1: Quantity = 100, Price = CHF 80, Material/external service per unit = CHF 10
· Product/DL 2: Quantity = 50, Price = CHF 200, Material/external service per unit = CHF 40
Net sales product/DL 1: 100 (quantity) x price CHF 80 = CHF 8’000
Net sales product/DL 2: 50 (quantity) x price CHF 200 = CHF 10’000
Cumulative net sales: CHF 8’000 (product/DL 1) + CHF 10’000 (product/DL 2) = CHF 18’000
Material / purchase of external services Product/DL 1: 100 (quantity) x 10 (material/external service) = CHF 1,000
Material / purchase of external services Product/DL 2: 50 (quantity) x 40 (material/external service) = CHF 2’000
Material / purchase of external services accumulated: CHF 1’000 (product/DL1) + CHF 2’500 (product/DL2) = CHF 3’000
Automatic calculations from “Analysis calculation
Affected account
Based on the entries in the “Analysis calculation” area, the following account is calculated automatically:
· Interest expense
How does the automatic calculation work?
In the “Analysis calculation” section under “Balance sheet – Liabilities”, the following accounts must be filled in:
· Overdraft facility (current liabilities to banks)
· Mortgages/capital investment loans
· Loans
The entries in these accounts paired with the information regarding short-term and long-term borrowing interest rates in the “Basic settings” area result in the interest expense in the income statement in the “Analysis calculation” area.
Example calculation:
In the basic settings, the short-term borrowing rate was set at 5% and the long-term rate at 2.5%.
The accounts are filled in as follows:
· Overdraft facility (current Bank debt) = CHF 10’000
· Mortgages / investment loans = CHF 150,000
· Loan = CHF 200,000
Now the business plan tool calculates the interest expense account as follows:
CHF 10,000 (current account (short-term)) Bank debt)) x 5% (short-term borrowing rate) = CHF 500
CHF 150,000 (mortgages / investment loans) x 2.5% (long-term borrowing rate) = CHF 3,750
CHF 200,000 (loan) x 2.5% (long-term borrowing rate) = CHF 4,500
Interest expense = CHF 8’750 (500 + 3’750 + 4’500)
