Interest Income and Expense Analysis Overview
The Interest Income and Expense Analysis section under Worksheet A-8 in Absolute allows for summarizing Interest Income and Interest Expense accounts, comparison balances, and analyzing for offset on Worksheet A-8.
Summary of Interest Income/Expense Module
The A-8 Interest Expense section is comprised of three steps/tabs: Interest Income, Interest Expense, and Comparison Summary. The tabs should be completed in order from left to right. 
Click on the tabs to access each of these steps:
| Interest Income: | Identify all of the Interest Income to be considered for offset against any applicable Interest Expense. These are Other or Non Operating Revenue accounts designated as Interest Income via A-8 Sections A and B. |
| Interest Expense: | Identify all of the Interest Expense to be considered for worksheet A-8 adjustment(s). The Interest Expense can be designated by setting up an expense filter, and selecting the specific GL Account(s) where Interest Expense is recorded. |
| Comparison Summary: | Analyze the total Interest Income to be offset against the applicable Interest Expense and Assign an A-8 Line to the offset. |
Editing the Purpose and Notes
To enter or edit the Purpose and Notes fields, click the text area.
After entering a new value in the text area, click the O button to enter the changes or click the X button to cancel.
Note: The Purpose will be printed on the workpaper. The Notes are for internal use only.
Interest Income Accounts
The A-8 Interest Income interface tab allows for identifying the treatment of accounts flagged as being related to interest income. These accounts were identified as interest income via the Other and Non-Operating Adjustment interfaces.
An account must either be offset or given an explanation as to why it isn't being offset to be considered complete.
Offsetting an account:
Click the offset button. Accounts are always offset 100%.
Not offsetting an account:
Click the explanation cell to open up the explanation input.
Enter an explanation as to why the account is not being offset.
After entering a new explanation in the input box, click the O button to enter the changes, or click the X button to cancel. 
Add Operation
External dollar amounts may be added via an adjustment operation. Enter interest income that is not included on the general ledger under the other or non-operating accounts here.
| Description: | Describe the nature of the value being reported for this operation. Bear in mind that this description will also appear in the final workpaper summary for this adjustment. |
| Value: | Enter the dollar value of the adjustment operation (ex. $100) |
| Source: | To attach a support paper from the Source Documents pool, click the Source field to select the desired uploaded support paper from the list. |
| To Add the Operation: |
Click the Add button to add the operation to the adjustment. |
Interest Income Operations
All operations for the Interest Income tab are displayed in the Adjustment Operations section.
| To edit an operation: | Click Edit for the corresponding operation. The Description, Value, and Source fields for the operation are now editable. After entering desired changes, click the O button to enter the changes, or click the X button to cancel. |
| To delete an operation: | Click Delete for the corresponding operation. Click the O button to permanently delete the operation, or click the X button to cancel. |
Interest Income Summary
The interest income summary is a summary of all the offset GL interest income accounts, along with any external income entered via adjustment operations.
A-8 Interest Expense
The A-8 Interest Expense section is the next step/tab of the workpaper.
Exclude Interest Expense Reclassification
If there is an existing A-6 reclassification related to Interest Expense, the effects of the A-6 reclass can be excluded from the pool of selected GL accounts so the income offset analysis can be performed prior to impacts of the A-6.
Excluding a reclass:
Click the Select Excluded Reclassification link.
Select an existing reclassification from the dropdown menu.
Click the O button to exclude the selected reclass, or X button to cancel.
Account Filters
Accounts are selected for the interest expense via account filters.
All filters which are selecting accounts for the adjustment are displayed here.
| To add a new filter: | Click the Add Filter link or button. |
| To add a preset filter for line 113 | Click the Add filter for line 113 link to automatically add a filter for line 113. |
| To view accounts: | Click the View Accounts button for a filter to view the all the accounts selected by that filter. |
| To View/Edit a filter: | Click the View/Edit Filter button for a filter to view or to make changes to that filter. |
| To reapply all filters for the reclass: | Click the Reapply all filters link button to reapply all filters and refresh the selected account pool. You may need to do this for example when copying from a previous report, or if you have changed a reclass affecting the current selected accounts. |
Selected Accounts
The selected account pool displays all the accounts that have been selected by the account filters. These accounts make up the pool that may be affected by operations.
Add Operation
Account:
Click the Account field to select the accounts from the Selected Accounts pool that this operation will affect. Select a specific account to affect only that account with this operation. Select a line to affect all accounts in the pool that share that line. Select Subset to select specific accounts in the account pool to affect. Selecting Subset allows the selection of the specific accounts via checkboxes in the Selected Account Pool section. Check a box adjacent to an account to affect it via the operation.
Note: You can only affect one line at a time. Once an account is selected, all accounts on other lines will be disabled.
Type:
Click the Type field to open the type selector. Select the desired operation.
| Percentage | Select to adjust account(s) by a percentage (ex. 23.7%). |
| Fixed Amount | Select to adjust account(s) by a dollar amount (ex. $100). |
| Net to Amount |
Select to adjust the balance to a dollar amount (ex. $100). Alternately, a Net to Amount worksheet may be used to itemize and sum various amounts by clicking the Show Worksheet button. When using the Net to Amount Worksheet, enter descriptions and amounts in the respective fields. The amounts sum automatically. Additional rows may be added by clicking Add Row. |
| External Adjustment |
Select to add an external dollar amount, not associated with the GL (ex. $100). |
A-8 Line:
Enter the A-8 line number the adjustment will be applied to.
The line number may be entered by typing it in the text box, or by clicking the Select Line button and selecting the line number from the list.
WS A-7 Reference:
Select the worksheet A-7 reference for this adjustment operation.
Note: This is only applicable for operations affecting WS A lines 1 or 2.
Source:
To attach a support paper from the Source Documents pool, click the Source field to select the desired uploaded support paper from the list.
To Add the Operation:
Click the Add button to add the operation to the adjustment.
All operations for the Interest Expense tab are displayed in the Adjustment Operations section.
To edit an operation:
Click Edit for the corresponding operation. All fields for the operation are now editable. After entering desired changes, click the O button to enter the changes, or click the X button to cancel.
To delete an operation:
Click Delete for the corresponding operation. Click the O button to permanently delete the operation, or click the X button to cancel.
Interest Expense Summary
The interest expense summary is a summary of all the cost centers being affected by the particular A-8 adjustment line. These amounts will coincide with the values that are to be reported on the cost report forms.
A-8-1 adjustments marked as Interest Expense on the A-8-1 Adjustments interface ("I E" checkboxes on the right-hand column of the A-8-1 summary interface) will display in this summary as well.
A-8 Interest Comparison
The A-8 Interest Comparison tab is the final step of the workpaper.
Income/Expense Comparison
| Interest Income Subject to Offset | The subtotal of GL Interest Income as identified in the Interest Income tab. |
| Other Interest Income - External | The subtotal of all the operations affecting the GL Interest Income from the Interest Income tab. |
| Total Interest Income Subject to Offset | This is the sum of the GL Interest Income and Other Interest Income External operations from the Interest Income tab. |
| GL Interest Expense | The subtotal of the GL Interest Expense as identified in the Interest Expense, broken out by Worksheet A line. |
| Interest Expense Adjustments | The subtotal of all the interest expense operations affecting the GL Interest Expense from the Interest Expense tab, broken out by Worksheet A line. |
| Net GL Balance | The subtotal of each Worksheet A line's GL balance, adjusted by the adjustment operations. |
| Total Interest Expense | The sum of the net GL balances. |
Interest Expense Offset
The Interest Expense Offset section displays the total offset amount from the Interest Income tab.
The interest offset defaults to Worksheet A line 113.00.
Any remaining offset amount is applied to the Worksheet A line with the highest balance, and so on until there is nothing more to be offset.
To edit an offset:
Click Edit.
Enter the A-8 line in the text input or click the select line button to select the line from the list.
If the Worksheet A line is 1.00 or 2.00, enter the A-7 reference by selecting the appropriate reference from the dropdown menu.
Click the O button to enter the changes or X to cancel.
Linked A-6 Reclassification Adjustment Operations
The Linked A-6 Reclassification Adjustment Operations section displays the A-6 reclassification linked via the Interest Expense tab as well as all temporary adjustments that are part of that reclass.
This section allows the creation of a temporary adjustment for non allowable interest. Note that the entire reclass is not rendered here, but may be accessed by clicking the reclass name. Adding an offset via the interest expense interface will not reset all that stage dependencies, but editing the reclass directly will!
Note: If there is excess line 113.00 interest expense, an A-6 reclassification must be linked to the adjustment. Go to the Interest Expense tab to link a reclass.
Adding/overwriting a reclass temporary adjustment:
If there is a line 113.00 interest expense offset, you can add a temporary adjustment to the linked reclass to reflect the offset amount.
If there is excess line 113.00 expense, an Add Offset button will display.
If there is no existing operation for the interest expense offset, the button will be to add an operation.
If there is an existing operation for the interest expense offset, the button will be to overwrite an operation.
Note: This button will be disabled until the A-8 line has been filled out for the line 113.00 interest expense offset.
Adding a reclass temporary adjustment:
Click the Add offset button to add a temporary adjustment to the linked reclass. It will automatically be set to the line 113.00 offset amount.
Overwriting a reclass temporary adjustment:
Click the Overwrite offset button to overwrite an existing temporary adjustment. Select the temporary adjustment operation you would like to overwrite. The value will be updated to the line 113.00 offset amount, and the description will be updated to reflect the source.
Click the O button to overwrite the selected adjustment, or X to cancel.
Summary
The Summary section displays a summary of all the cost centers being affected by the particular A-8 adjustment line. These amounts will coincide with the values that are to be reported on the cost report forms.
Completing the interest expense stage:
Click the 
button. All interest expense offsets must have an A-8 line, and if there is excess expense on line 113.00, a reclass must be linked.
The button will be hidden if the stage has already been completed. Note that in order to mark the Interest Income Analysis complete in Absolute, A-8 Sections A and B (Other and Non Operating), as well as Worksheet A-6 reclasses must be marked complete first.
Choosing not to use Toyon's A-8 interest expense framework:
If you do not wish to use Toyon's A-8 interest expense framework, click the checkbox.
After reading the warning text, click the O button to confirm or X to cancel.
Choosing not to use Toyon's framework will hide the stage, and all Other Operating and Non Operating accounts marked as interest income will need to be revisited.
If, after choosing not to use Toyon's framework, you decide that you would like to use it, you must go to the Report Settings page to re-enable it.