What are Partner Elements?
Partner Elements are similar to Inbuilt Elements, but are created when a corresponding and specific element is built first. This is essential to how Castaway is designed and functions as a 3-way modelling tool, establishing a connection between related Elements between your Profit and Loss and Balance Sheet.
Similar to the Inbuilt Elements, you'll need to understand how these Partner Elements are generated and their corresponding relationship so your model is set up well, particularly Mapping your Chart of Accounts.
Profit & Loss Partner Elements
| Element (created first) | Partner Element |
|---|---|
| Sales |
General Trade Debtor: Uncollected sales receipts are recorded in the in-built General Trade Debtor account Prepayment/Accrual: If the invoice method is set to anything but Automatic, a corresponding Prepayment or Accrual account will be created in the Balance Sheet |
| Cost |
General Trade Creditors: Unsettled payments are recorded in the in-built General Trade Creditors account Prepayment/Accrual: If the invoice method is set to anything but Automatic, a corresponding Prepayment or Accrual account will be created in the Balance Sheet |
| Inventory | A corresponding Inventory asset in your Balance Sheet |
| Provisions | A corresponding Provision liability in your Balance Sheet based on the Provision Type selected |
| Wages | Balance Sheet (Tax Withheld): Any unpaid Tax Withheld will be recorded as a Payroll Liability in your Balance Sheet |
Balance Sheet Partner Elements
| Element (created first) | Partner Element |
|---|---|
| Bank Account | Interest Income and Interest Expense account in the Profit and Loss |
| Fixed Asset |
Depreciation / Amortisation Expense in the Profit and Loss Accumulated Depreciation / Amortisation in the Balance Sheet Gain on Sale of Asset in the Profit and Loss |
| Investment |
Investment Income in the Profit and Loss Gain on Sale of Investment in the Profit and Loss Investment Receivables / Payables in the Balance Sheet |
| Loan | Interest Income and Interest Expense account in the Profit and Loss |
| Other Asset/Liability | Other Expense / Other Revenue in the Profit and Loss |
Why this Matters
Familiarising yourself with elements and their Partner Element relationships helps you build a more accurate and integrated forecast. When elements are correctly connected across the P&L and Balance Sheet, Castaway can maintain the integrity of the three-way model automatically.
If you need any assistance please contact our support team at: support@castawayforecasting.com