Date: May 6, 2010 Document Version no 1.0 Prepared by: Distribution to: Kimber England, Richard Werner COINS Ti Users Earliest available version of COINS: COINS Ti 2.1 These notes are published as guidelines only. This How to Guide may contain recommendations about configuration changes. Your configuration will almost certainly vary from the examples given in this document. Any configuration changes should always be applied to a separate non-live environment first and tested to prove that the features work as you require. If you have any difficulties, please email the COINS USA Support Center at support.us@coins-global.com or call 518-C-4-COINS (518-242-6467). Please note that you should not expect the Support team to conduct configuration changes for you. May 6, 2010 Page 1 of 8 Copyright 2010 Construction Industry Solutions (Shaker) Inc.
CONTENTS 1 Purpose of this Document... 2 1.1 Overview of Functionality... 2 2 Configuration... 3 2.1 Identify which GL Accounts to include... 3 2.2 Define Ratio Factors... 4 2.3 Define Ratio... 6 2.4 Print Ratio Report... 7 1 Purpose of this Document This document illustrates how to set up financial ratios in the COINS Ti General Ledger module. 1.1 Overview of Functionality Financial ratios such as Current Ratio, Debt to Equity, and Return on Sales can be useful tools for evaluating financial statement information. There are 4 basic steps to setting up a ratio in COINS Ti: 1. Identify the GL accounts to be included in the ratio s numerator and denominator. 2. Set up the numerator and denominator in the Report Definition/Ratio Factor File. 3. Set up the ratio in the Ratio Definition File. 4. Print the Ratios Report. You may follow this basic procedure to set up any ratio of interest. To illustrate the steps, this document uses the Current Ratio, which is defined as Current Ratio = Current Assets / Current Liabilities. Tip: The examples shown in this document reflect simplified sample data. Your ratios need to reflect the GL structure of your own organization, so your selections will vary. May 6, 2010 Page 2 of 8
2 Configuration 2.1 Identify which GL Accounts to include Before you can set up a ratio, you must determine which GL accounts need to be included in it. You can accomplish this by using the GL Trial Balance Inquiry. 1. Select General Ledger > Inquiry > Trial Balance Inquiry from the COINS Ti tree menu. 2. Display the Trial Balance for the latest complete fiscal period. 3. Export the inquiry to Microsoft Excel as shown in Figure 1. Figure 1 4. Sort the Excel spreadsheet by Account, Company, Division, and Center to easily identify the A (Asset) and L (Liability) accounts you need to use for the Current Ratio. 5. Add two new columns to the Excel spreadsheet: Current Asset and Current Liability. Copy the Ending Balances to the Current Asset or Current Liability columns as appropriate as shown in Figure 2. May 6, 2010 Page 3 of 8
Figure 2 2.2 Define Ratio Factors Now that the accounts have been identified, you can set up the ratio factors you need. Since Current Ratio = Current Assets / Current Liabilities, we need to set up ratio factors for Current Asset (CA) and Current Liability (CL). 1. Select General Ledger > File Maintenance > Report Definition/Ratio Factors from the tree menu. 2. Click Add to set up the Current Asset ratio factor. Make sure that the Level of Account Definition is set to Company as shown in Figure 3. May 6, 2010 Page 4 of 8
Figure 3 3. Click the Distribution button to add as many account lines as required to incorporate all current assets. 4. Add the Asset accounts identified in 2.1 Identify which GL Accounts to include as shown in Figure 4. If the accounts are not consecutive, enter them on separate distribution screens. May 6, 2010 Page 5 of 8
Figure 4 5. Repeat these steps to set up the Current Liability ratio factor, using the Liability accounts you identified in 2.1 Identify which GL Accounts to include. 2.3 Define Ratio The next step is to define the Current Ratio (CR) based on the ratio factors we just defined. Since Current Ratio = Current Assets / Current Liabilities, the numerator is going to be CA and the denominator is going to be CL. 1. Select General Ledger > File Maintenance > Ratio Definitions File from the tree menu. 2. Click Add and enter CR as the Ratio Name. 3. Enter CA for the numerator and CL for the denominator as shown in Figure 5. Enter a multiplier of -1.0 for the denominator so that the Current Ratio sign will be correct. 4. For comparison, enter industry and company standards for the Current Ratio. May 6, 2010 Page 6 of 8
Figure 5 2.4 Print Ratio Report To calculate and view the Current Ratio, go to the General Ledger Reports Fin Statements and run the Ratios report, shown in Figure 6. Tip: When testing the ratio, use the same fiscal period as in 2.1 Identify which GL Accounts to include so you can verify the ratio calculated by COINS against the spreadsheet s Current Asset subtotal divided by its Current Liability subtotal. May 6, 2010 Page 7 of 8
Figure 6 May 6, 2010 Page 8 of 8