Balance Sheet tab calculation method library
The Balance Sheet tab has three calculation methods within its library, as described below.
Calculation Method | Description |
---|---|
Cash Flow | Use this calculation method to plan balance sheet accounts that have term-to-maturity (CDs, for example) or term-amortizing instruments (such as consumer mortgages, commercial real estate mortgages, commercial loans, auto loans). |
Simple Interest | Use this calculation method to plan balance sheet accounts that are entirely composed of instruments that have uncertain cash flows and uncertain rate changes. Classic examples of these accounts are savings, interest-bearing checking, and credit card GL accounts. |
Non-Interest | Use this calculation method to plan balance sheet accounts that are entirely composed of instruments that are not interest bearing. Classic examples of these accounts are demand deposit (DDA) GL accounts. |