Methods for calculating balance sheet growth

Your budget administrator may set growth rates for some or all balance sheet accounts when preparing the budget for use. The system applies these growth rates globally across all budget plan files, which you may be able to adjust, depending on the account and administrator settings.

The administrator also configures the balance sheet, using the Balance Growth Rate Method setting on the Acct Growth Drivers, to apply one of the following methods of calculating balance growth for the remainder of the base year.

• Annual growth rate – the prior year ending balance is multiplied by the growth rate of the base year rate to calculate the base year ending balance.

  

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• Remaining base year then annual growth – the base period ending balance is multiplied by the growth rate to calculate the base year ending balance.

  

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• Growth with seasonality – the balance for each projected period is calculated by applying the growth rate to the prior year's balance for the same period.

  

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  NOTE: The Growth with seasonality method is only available for the Simple Interest and Non-Interest calculation methods.

For the Annual growth rate and Remaining base year then annual growth methods, the monthly new volume is the difference between the projected ending balance and the base period ending balance, evenly spread over the projected base periods. Balance growth for all plan years is always calculated using the prior year’s balance and spread evenly to all periods in the year.

NOTE: If enabled by the administrator for the Cash Flow calculation method, you can enter new volume adjustments into the projection periods. The system adds the adjustments to the month-end balances. This lets you include seasonal variations in your budget projections.