Linking new asset and liability type to financial statements

debtorscreditorslinksshort term liabilityshort term assetfactoring
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Josh B A+ 6
Linking new asset and liability type to financial statements

Hi All

We have a client that has factoring revenue (buys other businesses debtors for a fee). The issue I'm facing is that it raises a short-term asset with a corresponding short-term liability. I've attempted to work with the current working capital modules but not had success manipulating them to what I need. Essentially I need to raise the liability and asset in the same module and link back to balance sheet and cash flow statement from one module.

Has anyone attempted to do this?

If I link the module to the financial statements (balance sheet and cash flow only, no income statement impact) how do I make this link the annual financial statements? Or do I have to make this link separately?

Thanks Josh 

Michael Hutchens A+ 189

Hi Josh,

Can you please provide more information about the time series properties of the model you’ve built so far, and the modules within it, so we can better understand what you’re working with.

The key to customizations like this is determining what changes need to be made to which module(s), and/or which new modules need to be built from scratch. Then customizing the financial statements is usually just a matter of adding a few new links in...


Josh B A+ 6

Sure it's a quarterly model, for 3 years (total of 12 periods).

I did use a support credit to attempt to sort it out, at the time I thought we had but after working with it more I found that what we did was not the right solution.

Jun Yan A+ 124

Hey Josh, did you end up figuring this out?

Should be a quick revenue module and links out to move the balance sheet. I may be misunderstanding this, but how come there's a short term liability that comes with the asset if it's purchasing the debtors for a fee?


Josh B A+ 6

Hi Jun

I've linked it to the financial statements and no issue there. I just realised I have to repeat the process for the annual statements as well, I wasn't sure if there was some relationship between the financial statement sheet and the annual statements. As I learn more about the links I realise I just need to replicate the links in the annual statements as well.

One of the arrangements doesn't exchange all the cash straight away so hence an asset and liability raised at the same time (currently doing my head in, learning to provide better scope to my clients, you live and learn).



Jun Yan A+ 124

Hey Josh,

Great to hear! Yes, once you get your head around module links as well as module componenting that's when you really start playing with scale!

All the best.