Balance Sheet Items for Financial Analysis: How to Decipher Cash Flow and Locate an Erroneous Document

When a store processes sales, supplier payments, cash collection, and other transactions every day, the cash balance alone is not enough to understand where the money came from and what it was spent on.

For this purpose, Torgsoft provides the Balance by Financial Analysis Categories feature. It shows cash movements by category: sales revenue, settlements with suppliers, internal transfers of funds, and other categories used by the business.

If the total amount raises questions, you can first identify which category contains the discrepancy and then find the relevant financial documents.

What Is a Financial Analysis Category?

A financial analysis category indicates which type of cash movement a financial transaction belongs to.

For example:

• money received from selling goods is recorded under Sales Revenue;

• payments to suppliers for purchased goods are recorded under Settlements with Suppliers;

• transfers between cash registers or bank accounts, cash collection, and depositing sales proceeds are recorded under Internal Transfers.

Every financial transaction in Torgsoft is associated with a specific financial analysis category. This allows the software to display totals not only by cash register but also by the purpose of the cash movement. 

The main categories used automatically by the software can be viewed under Settings → Options → Financial Analysis. The official documentation specifically describes Sales Revenue, Settlements with Suppliers, and Internal Transfers as key system categories. 

How to View the Balance by Category

Open Payment → Balance by Financial Analysis Categories.

Set three parameters at the top of the window:

1. Analysis Period — a day, month, or another required time range.

2. Retail Outlet (Accounting Center) — the store or another accounting center you want to check.

3. Currency — the currency in which the balance should be generated.

Torgsoft will then display the financial analysis category tree and three main indicators:

• Income — how much money was received under this category;

• Expense — how much money was paid out;

• Balance — the resulting amount after accounting for incoming and outgoing funds.

This allows you to see not only the total amount of money but also which categories contributed to it.

For example, if you want to review expenses for a particular month, select that month and the relevant retail outlet, then check the amounts under the required categories. If you need to review a specific store within a retail chain, select its accounting center.

You can copy the contents of the window using the Copy All button and then paste them into a document for further processing or printing. 

How to Find Which Document Changed the Balance

The Balance by Financial Analysis Categories feature displays totals by category. To find the specific transaction that contributed to an amount, use Payment → Financial Document. 

This section stores financial transactions, including incoming funds, payments, settlements with suppliers, operating expenses, and other cash movements.

The following filters are available at the top of the window to help you find a document:

• Period;

• Document Type — incoming or outgoing;

• Cash Transaction Selection;

• Counterparty;

• Analysis Category;

• Cash Register;

• Retail Outlet;

• Company.

These filters are specifically intended to help locate individual financial transactions.

Example

Suppose you notice an unusually large amount under a particular category in the monthly balance.

First, note the following:

• the period;

• the retail outlet;

• the financial analysis category;

• the approximate amount you need to check.

Then open Payment → Financial Document and apply the same parameters.

The software will display only documents matching these conditions. This allows you to narrow a large list of transactions down to a few documents and review each one separately.

What to Check If an Amount Appears Incorrect

First, make sure the same data filtering conditions are applied.

Period

A document may be missing from a report if you are analyzing a different period. Therefore, when comparing amounts, make sure the same dates are selected in both sections.

Retail Outlet

The balance can be generated for a specific accounting center. If you compare data from different retail outlets, the totals will naturally differ.

Currency

The balance is generated in the selected currency. If the business operates with multiple currencies, check which currency is selected in the report. 

Financial Analysis Category

If a financial document is assigned to the wrong category, the amount will appear under the wrong line in the financial analysis.

Therefore, if a category contains an unexpectedly large or small amount, find the documents assigned to it through Financial Document and review them.

Cash Register and Retail Outlet

In the Financial Document section, you can filter transactions separately by cash register and retail outlet. This is particularly useful for businesses with multiple cash registers or stores. 

What Is the «Internal Transfers» Category Used For?

Not every movement of money represents business income or an expense.

For example, a business owner may:

• transfer money from one cash register to another;

• collect cash;

• deposit sales proceeds;

• withdraw money from a bank account;

• transfer money from a cash register to a bank account;

• transfer money between bank accounts.

Torgsoft uses the Internal Transfers category for such transactions. It allows money movements within the business to be tracked separately. 

Therefore, a large amount under this category does not necessarily indicate high expenses. First, you need to check which internal transactions were carried out during the selected period.

How to Find the Cause of a Discrepancy

Follow these steps to investigate:

1. Open Payment → Balance by Financial Analysis Categories.

2. Select the required period, retail outlet, and currency.

3. Identify the category with the questionable amount.

4. Open Payment → Financial Document.

5. Set the same period and retail outlet.

6. Select the relevant Analysis Category.

7. If necessary, further filter documents by cash register, counterparty, company, or document type.

8. Review the transactions found and identify which document caused the incorrect amount.

This approach allows you to move from an overall total for a month or retail outlet to the specific financial document that needs to be checked.

When to Contact Technical Support

If you have checked the period, retail outlet, currency, and financial documents but still cannot identify the cause of the discrepancy, contact Torgsoft technical support.

When submitting your request, it is advisable to include:

• the period in which the discrepancy occurred;

• the retail outlet;

• the financial analysis category;

• the amount you expected and the amount displayed by the software.

This information will help the specialist investigate the issue more quickly.