Visual Cash Focus - User Tip 39 Capital Expenditure and deferred payment options How to input a CAPEX budget and options for deferring payment The Scenario Let s assume that you have created a number of Fixed Asset accounts and entered the Opening Balances. For each asset type there is a capital expenditure budget. How do you now enter the CAPEX budget and then customise the respective cash flow payments? Suggested Solution How to key or import CAPEX Budget or Forecast data 1. Keying a CAPEX Budget or Forecast data To manually enter CAPEX data Go to Accounts & Budgets Select Fixed Assets Choose Budget Setup and confirm the preferred depreciation entry or calculation method (i.e. Amount or depreciation %) Choose the Budget per Period tab Note that there are 3 columns Col 1 (Depn Percent) is either the annual Depreciation % (divided by 12) or the monthly depreciation amount. Choose the depreciation amount if importing the budget. Col 2 (Addition + or -) is for the CAPEX Budget Enter the budget CAPEX data in column 2. Positive amounts are treated as asset purchases, negative amounts are disposals. Both are Investing Activities for Cash Flow purposes. Note the right click options for allocating annual budgets and copying. Col 3 (Gain/Loss) is for entering gains or losses on assets sales.
2. Importing the CAPEX Data From the main screen use the top left menu options as follows Select File, Export/Import, and Universal Import from Spreadsheets then Choose Budgets File Type - select Excel 97 or Excel Worksheet File Name - choose Find the File and then navigate to the budget data file
Click Do The Import. The software will then report the lines successfully imported and those not. Click Import Review to view the results and note any rejected accounts. Note if some lines import okay and others do not this indicates that either the rejected account a. Does not exist in the model b. The account is incorrectly coded If no lines are imported, a. Check that the spreadsheet is closed (not open) b. That the spreadsheet has the correct format. To import Budget or Forecast data a format is required Budget and Forecast file import format To import Budget and Forecast data from say Excel the spreadsheet should be formatted as follows. Col A = the account code Col B = the period reference is the Budget or Forecast period number Col C = the depreciation % or amount Col D = the CAPEX amount excluding GST Col E = Gains or losses Note that the Col descriptions and account references are optional The following is an example of the format required to import all 15 periods simultaneously for Motor Vehicles. This format can be achieved using Lookups and macros. The format is the same for importing single or multiple periods.
As with importing budget data (see tip 6) it is easier to format the data as follows with the periods going across the page. Alternatively rather than reformat the spreadsheet to import all periods simultaneously, each period can be imported one period at a time. Although 12 separate imports are required this may be an easier process than reformatting it. In the above example only period 1 will be imported and the remaining periods will be ignored. To import the next period 2 data, the highlighted period 1 column is deleted, and the Col B reference is changed from a 1 to a 2. This tells VCF to import the data into period 2. To import period 3, the second period s data column is deleted and the Col 2 period reference is changed to a 3 etc. 3. Use the Excel Links Excel Links enable complex CAPEX budgets to be calculated within the Cash Focus spreadsheet with only the categories imported. This could include a Fixed Asset schedule. To use the link click TO Excel and link the schedule to the CAPEX total for each period.
4. User journals The advantage of user journals is that you can accrue the planned expenditure to Accounts Payable as shown Then pay the amount over multiple periods as required. The following illustrates the payment made the period following.
Suggested Solution How defer the CAPEX payment? The system default is to pay the CAPEX amount in the same period as the budget data. 1. User journals as above 2. Use special timings The advantage of special timings is that they are quick to implement but the disadvantage is that the payment cannot be split over multiple periods. To create a special timing use TO column and simply specify how many periods in advance (-) or arrears from the budget amount the cash flow is to occur. For example, by specifying a 2 alongside the budget entered in period 3, the cash flow payment is deferred by 2 periods to period 5 as shown below. The 2 represents payment two periods following or 60 days payment terms.
3. Loan Payment option Instead of entering the budget amount activate the loan payment option by clicking the Loan Schedule option as shown Enter the loan payment details as follows Exit and click Results View to confirm the Cash Flow results
See above the Motor Vehicle payment made of $40,000 plus GST offset by the load Received of $45,000 and the repayments.