How To Create Your Financial Statements Like A Red-Blooded American
The first time I implemented ByDesign, I was introduced to the concept of reporting your Income Statement ‘by Function of Expense.’
My first reaction was like HUH?
This is AMERICA bro, and we report our P&L’s (not Income Statements) by a GL Account tree (not a weird structure by Function of Expense).
Not only was this weird ‘Function of Expense’ concept being pushed on me, but the default Financial Statements in ByD REQUIRE you to produce your income statement in this un-American fashion. Right then and there I decided I’d find a workaround, because this is America, and I have the freedom to workaround whatever I want, damn-it.
Side-note: Here is what Nancy Pelosi has to say about Income Statements by ‘Function of Expense’:
So here is that workaround, step by step. Open up a can of Bud, crank up the Classic Rock station on your FM radio, and learn how to produce your financial statements like a red-blooded American.
Note #1: I finally googled ‘Function of Expense’ like a month ago and it seems to be a valid concept in US GAAP. I don’t care though, because I have produced financials for literally dozens of companies (even ones in China) using some sort of GL account structure.
Note #2: None of what you are about to see is real or confidential data.
Here we go:
1. Navigate to Business Analytics > Design and Assign Reports. Find the Financial Statements report. Select New > Report as Copy
2. Rename the report to Financial Statements – by G/L Account Structure
3. In Characteristic Properties, select GL Account, and change the Hierarchy value to Fixed Hierarchy
5. In Define Variables, select Financial Reporting Structure
6. Change the Financial Reporting Structure value to I/S by Function of Expense
10. Click OK, and click GO. Now you have an Income Statement by GL Account Structure
God bless America.
God bless us, every bro.
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