Guidance on Entering Assumptions

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These topics give detailed guidance on entering assumptions into the assumption reports, opening Balance Sheet and prior-year Income Statement. For illustrative purposes, the $ currency symbol and 000s denomination and US/Canadian terminology have been used. US/Canadian terminology is used so bear in mind the following differences if using UK/International formats:

Income Statement becomes Profit & Loss or P&L.

Inventory changes to Stocks

Receivables become Debtors

Payables become Creditors.

Basics of Entering Assumptions

Exl-Plan contains many variables and features that may not be required by users. These can be left blank or with zero values as Exl-Plan runs satisfactorily with only minimal assumptions relating to sales, costs, etc., together with an opening balance sheet which, in the case of a startup, can show zeros throughout.

Note the following:

•	Assumptions should be entered only in rows containing green ->> or <<->> arrow signs.

•	When entering values for sales, costs or other expenditure, always exclude input/output taxes such as sales taxes, VAT, GST, HST etc.

•	When entering payroll/benefit costs always include expenses, perks, pensions as well as related social insurance/security items which are usually payable in arrears to the State (or other comparable organizations).

Exl-Plan's assumption reports can be easily extended to accommodate additional details and other variables - see Making Simple Changes for guidance on extending Exl-Plan.

Tip:

Instead of entering assumption values, simple formulae (linked to other cells in the same row or to other assumption rows or to calculated values elsewhere in Exl-Plan) can be entered into unprotected, cream assumption rows in order to “automate” the calculation of key assumptions. When doing this, avoid creation of circular calculations which may become evident if Exl-Plan apparently fails to update even after pressing the F9 function key etc.

Help with Assumption Reports

Help on entering assumptions is presented for each assumptions report as follows:

►	Assumptions Report No. 1 - Sales Forecasts

►	Assumptions Report No. 2 - Materials/Goods, Other Direct Costs & Purchases

►	Assumptions Report No. 3 - Overhead Expenses

►	Assumptions Report No. 4 - Fixed Assets

►	Assumptions Report No. 5 - Funding, Interest Rates & Related Items

►	Assumptions Report No. 6 - Sales & Related Taxes

►	Assumptions Report No. 7 - Year-End Credit Balances

Guidance is also given on entering values into the Opening Balance Sheet and Prior-Year Income Statement.