Overview

You can create projections for examining what-if situations, based on existing historical statements. A projected statement typically covers at least one year and may cover multiple years. There are specific requirements that must be met prior to creating projections and there are four projection types from which to choose. Both are discussed in this topic.

Note: A historical statement must exist for the client in order to create a projection.

Requirements

Ensure the following requirements are met prior to creating a projection:

• You have at least one period that is of the Historical type. If you do not have historical data but do have specific projected data, set up the historical period with the quality type ProForma selected.

• The Historical periods are in balance.

Note: The settings you chose for your historical statement (account titles, cash flow mapping) carry over to the projected statement. You may, however, change the cursor movement for the projected statement.

Projection Types

There are four projection types from which to choose when creating a projection:

• Base Case: Uses the basic, standard assumptions, based on industry. Choosing Base Case as the projection method takes you directly to the projected spreadsheet.

• Dollar: Takes you immediately to the projected statement, where all accounts are expressed as dollar values, relative to the dollar balances of the period from which you are projecting. This method is commonly used to match the projection results with client-provided projections.

• Sensitivity Analysis: Allows you to develop "what if" scenarios from a projection. Sensitivity Analysis features a template overlay for grouping line items that you select, which can include spreadsheet accounts, financial ratios, and cash flow results, providing a focused view of assumption variables and projection output for the selected line items. As you adjust the assumption types and values within the template, new output can be calculated, which enables a focused analysis of output sensitivity to your "what if" assumption changes without your having to navigate through the entire projection spreadsheet.

Steps: Create Projection

Follow these steps to create a projection:

1. Open the Select Projection dialog box by using one of the following access methods:

   • Recent flyout: Right-click a client and select Statement Spreads > Select Projections to jump directly to the Select Projection dialog box.

   • Client page: Click on the Statement Spreads section and choose Statement Spreads > Select Projection.

   • Historical statement page: From the Edit Historical Statement page, click the Projections link at the top of the spreadsheet, or click and choose Statement Spreads > Select Projection.

2. To start from scratch, click the Add button.

   If you want to start from an existing projection and then save a copy under a new name, click one of the existing projections (if any exist).

   If you chose an existing projection, click the Save As link that appears at the top of the projection spreadsheet so that you can save a new copy under a new name.

   For details on the Select Projection dialog box, click here.

3. Complete the Create Projection dialog box that appears when you click the Add button. For details on this dialog box, click here.

4. Click OK.

   The projection page opens, with your new projection.

   For details on using the projection page, click here.