Source & Apps
What is a Source & Apps
A Source & Apps will compare the balance sheet movements to determine where the business sourced it's funds and how the funds were applied. It's a good report to answer the common question "Where has my profit gone?"
Using the example below, it highlights that the business sourced it's funds from equity (profits) of $96,443 which has then been applied towards working capital $1,443 and an increase in fixed assets of $95,000.
What are non-cash exclusions
Generally you only want the Source & Apps to show the cash movements. The Non-cash exclusions drop down will allow you to exclude any profit & loss accounts that have not been linked to a cash, payables or receivables account in the Chart of Accounts.
How do I change the asset or liability categories
You can add new categories or change the account classifications (eg current v non-current) under Chart of Accounts.
If you are reporting on a consolidated basis, you can allocate all the inter-entity loans to the same category so they eliminate on consolidation.