Speaker 1: In this presentation, we will create custom reports related to the restricted items. In other words, we're going to be tracking the restricted items with custom reports that we will be creating. The ability to create these custom reports is a great tool within Xero and a distinguishing tool that Xero has that many other accounting softwares do not have. Get ready, because here we go with Xero. Here we are in our not-for-profit organization dashboard. Let's take a quick look at Excel to see what our objective will be. You'll recall that in Excel, we're entering this information in something like a trial balance type of format, which would be here. Then we're also creating our financial statements from it. If we go on over to the financial statements, then we're going to be having two columns for the statement of activities, or in other words, basically the income statement. We can break those out to items with restrictions and those without restrictions. We saw that last time we created a custom report that does that. A worksheet report works great. Now we want to think about, well, what about the items that are restricted? We have more than one kind of restriction. Can we make another report that will support this number and tell us what types of restrictions we have? We can, and let's do it here. We're going to go back on over to Xero. Let's open up our reports. Let's go to the accounting dropdown. I'm going to open up a standard income statement. Let's open up the standard income statement. It's for the year 2020. Here's going to be the standard income statement with one column. This is going to be including all items that we have thus far. If I select the reporting settings dropdown, we're not restricting anything with regards to the unrestricted and restricted items here. This is our filtering field that we can use to create custom type reports and filter these reports. Then I'm going to close this back up. I'm going to go up to the tab up top. I'm going to right-click on that tab. I'm going to duplicate that tab. Then I'm going to go back to the tab to the left. We're going to then create another report. This is going to be the income statement worksheet. This is a custom report we created in a prior presentation. If you haven't seen that, you can go back. We're going to do a similar kind of customization as we did in this presentation, just for a different factor now. This one, we took that standard income statement. We edited the layout, as we will do in this presentation. We broke out the unrestricted and the restricted items, basically with those filtering fields that we had before. Now we have a report that looks much like the end result report statement of activities report, except that we have these unrestricted columns over here. We're using that. That's why it's a worksheet report. That's what we have thus far. Now we have the restricted items here. These restricted items to 108, which include two different things in the restriction. We might want to run another report and say what items are included in those restricted items. Let's do that now. To do that, I'm going to go back up top. I'm going to right-click on this tab again and duplicate this tab. Then we'll start off with another, basically just a fresh income statement. Then we'll adjust it. We're going to go to the accounting dropdown. Let's open up another income statement. We have a clean income statement open, then the worksheet. Then we'll open up another income statement. This is the one that we will actually be changing at this point in time. Now remember, the changing features we're going to use are basically, if we go to the report settings on the right-hand side, the items on the unrestricted and restricted. These are the segments that we have set up for the tracking features. These are the tracking features that we have set up. We want to look at the restricted items, and we basically want to be breaking out between the government and the time restrictions. That's going to be our objective. Let's close this report. Then what we're going to do is I'm going to go down to the edit layout. We will edit the layout. Next thing we're going to do is be adding a column. We're going to go back up top, up here, and say where it says columns. I'm going to add a column. We'll say a column. We want to have a restricted items. That's going to be the tracking feature that we have been using, so a column related to the restricted items. I'm then going to choose one of the two restrictions. Let's choose the government grants education here. We'll choose that item. Then I'm going to change the name. I can't do it here for some reason, but I can do it in this blue area. I double-click in the blue area. I don't need the date. I'm just going to call it the government grants there. We're going to save that. That's going to be the one column we want. Now let's add another column. I'm going to say go back up top and add another column. It's also going to be in the restricted items. This one, we're going to say that let's pick the other item, which is going to be the time. Time. There we have that. That looks good. Then I'm going to change the name to just be time. I'll double-click on this item and delete the year just having the time. I actually don't want the total column over here. I don't need the total. What I'd like to do is total these two up. I can't do it with this column. I don't want the whole income statement number. I'm going to click on this column, and I'm going to trash that column. Clicking on the title, going up to the trash can up top, and deleting that item altogether. Then we're going to add one more column for the total. I'm going to add another column. Say we want another column for the restricted items. Then I'm going to choose the government and the time. I'm not going to choose unassigned. We might go back and adjust some of the transactions related to the unassigned when we do the expense allocation. You can think about how that works a little bit more. Because we created two separate categories for the government grants or the restricted and unrestricted, we would have to have something that would be assigned in each one. Anytime I have something that's unassigned, it's going to populate in here when we put it into the data input screen. I'll explain that in a little bit more detail when we go through the allocation of the expenses. But at this point in time, I'm not going to include the unassigned. There shouldn't be anything in the unassigned at this point. If there is, if we didn't assign anything, we'll be able to check that. Because what we're trying to do is tie this out to what we saw on our income statement worksheet. Let's check this out. I'm going to say OK. Then let's double click on this one. I'm going to say this is the total. This is like the total. Let's do that one more time. I'm just going to call it total. There we have it. Now let's take a look at it. Let's say done and see what it looks like so far. There we have it. Breaking out the time restriction, the government grants, the totals. Then adding up to that $267. It's good to add these across because that total column is calculating independently. We can double check it by calculating across. I'll take my giant calculator here and make it a little bit smaller. Then we're going to say that if I take the totals $159,000 plus $108,000, we get the $267. That looks good. Does that $267 tie out to our worksheet? Let's go over to our worksheet over here. We're looking at these restricted items. The restricted items should be at the $108,000. Notice it's picking up that $225,500, which is unrestricted it looks like. I'm going to go back on over here. It's got this $159,000. There's a problem with that number. It's actually on the worksheet report. If I go back to the worksheet report, this $159,000 is in the total column, but it's not allocated. It should be in the restricted items. Let's go into the editing of this report and check that out. I'm going to check out the edit of this report and see why it's not allocated to one of the columns. If I go into the restricted items here and I select the dropdown, notice in the restricted items, this should be including both time and the government education. It wasn't including this item. I'm going to say okay. Now this restricted column is including all restricted items at this point, or it should be. That's going to be our total. Let's go done here and see what we have. That makes sense. That's why you should want to add them across here. The restricted items should include the total. These all add across this way. That's going to be the $159,000 is now included. The restricted column now adding up to the $267,000. Now we can look at our worksheet. We can say here's unrestricted, restricted. This is not a too overwhelming worksheet. Then I can say if I want more detail on the restricted items, we're going to go into this report. We'll then move over to this report where we can see that we have the items of the $267,000 broken out here. I think we made that adjustment before. I'm going to go back to this worksheet and say I think what we did not do or what I did not do is save it as a custom report. I'm going to re-save it because I changed the formatting. I changed the layout. I'm going to say save this report again. Hopefully, if I keep the name the same, it'll overwrite the other one. I'm going to say save. There we have it. Hopefully, we won't have to make that change again. Then if I go back to the new report we made here, now we might want to adjust the name here. This is going to be the restricted items. Note when we're running the restricted items, we can run it for the current time period, the current year in this case. That should then tie out to the restricted items on the income statement here. If we want to also tie out to the equity section of the balance sheet, which we'll talk more about later, then we would have to run this report for the life of basically the restricted items to tie out to the equity section of the balance sheet. Just keep that in mind. We'll talk a little bit more about that as we go. This will then be our custom report. Let's go ahead and save this report. I'm going to say I'm going to make this a custom report. I'm going to make it called restricted items. Then I'll save that. Then let's just check it out. I'm going to make a new tab by right clicking on this tab. I'm going to duplicate this tab. We don't need this open over here. Then I'm going to go back to the left tab and just check out our custom reports to make sure that it has shown up in the custom report. We'll go to the reports over here. See what we have in the reports. Opening up all of the reports. We're going to go into the custom report tab because we just made another custom report. It does look like this one has been adjusted for us. Now we have the restricted items. Again, these two are probably going to be used a lot. This one will probably be used all the time. It might even be used more than the income statement if we were doing this in practice. Then this one might be used a little bit less because of the restricted items, but probably enough that we would want to put it on our star for one of our favorite reports. That's what the little star means. It's our favorite. That means it's going to be populating if I hit this dropdown. Now I have it in the restricted report. Now I've got my balance sheet, my income statement, and my income statement worksheet, which will show us all the detail of unrestricted and restricted. Well, not all the detail. It'll show us the categories unrestricted and restricted. Then we can break out the detail with our restricted items report. Later on, we're going to make at least one more key report here that will break out the unrestricted items. That will be if I go back to our worksheet report here for this column. But we won't do that until we apply out the expenses. Once we apply out the expenses to their categories, that's when we're really going to be in need then of seeing the more detail of the unrestricted columns, and we'll make another report for that. Note that other software, such as a QuickBooks Online type of software, you could track all this with the class tracking feature, but you're more limited with the reports, meaning you can get all the information on one report, but it's all going to be on one huge report typically. Desktop version allows you to collapse the columns, which gives you a little bit more leeway with it, but doesn't give you the flexibility that this does. It really allows us to make the reports a lot more fully within the database system so that we can basically have them pretty much good to go to print out and give to somebody other than some kind of terminology things like the name of net income and whatnot. There's more customization with the reports. Obviously, we could always still export the reports to Excel and minimize some columns, and there's pros and cons to either method because the customization feature being more flexible means that it's a little bit more complex to make, and you've got to make sure you organize your reports, but to have it all in the database system to me is pretty nice. I'm liking the editing of the reports feature within Xero, a lot more flexibility with it. Anyways, that's going to be it for now. Let's get out of here.