• Tek Siong, Hock

Odoo Accounting - Profit & Loss and Balance Sheet Report

Updated: Sep 12

In any Accounting software, the most important financial reports are Profit & Loss (Income Statement) and Balance Sheet Report.

In the Odoo Community Edition V11 onward, you have to install these free accounting modules in order to have a working Accounting module and financial reports.


Go to the Accounting module -> Configuration -> Account Reports. This is available after you installed the accounting_pdf_reports module.

Create the report items in the following screen. You may refer to the following for the configuration.




Profit & Loss report show the REVENUE, EXPENSES and PROFIT(or LOSS) of the company, for a period of time.

The following is a typical P&L report format in Malaysia, which may varies depending on the country. You may see here the configuration for your report.


Profit & Loss Reports

REVENUE

a) Sales = Income (Account Type/Reverse balance sign)


EXPENSES

b) Cost of Goods Sold = Cost of Revenue (Account Type)

c) Gross Profit = Sales – Cost of Goods Sold (Income + Cost of Revenue/Reverse balance sign)

d) Expenses = Expenses + Depreciation (Account Type)


PROFIT

e) Net Profit/(Loss) = Gross Profit – Expenses (Account Type = Income + Expenses + Cost of Revenue/Reverse balance sign)


Balance sheet shows the ASSETS that company OWNS, the LIABILITIES it OWES and the EQUITY that BELONGS to the owners, at a single point of time.


ASSETS = LIABILITIES + EQUITY.

Any debit to the Asset will increase it and credit will decrease then Asset. On the other hand, any credit will increase the liabilities and debit will decrease it.


The Net Profit/(Loss) from the P&L will be part of the Equity in the BS report.




The following is a typical BS report format in Malaysia, which may varies depending on the country.


Balance Sheet Reports

ASSETS

a) Fixed Asset = Fixed Asset (Account type)

b) Current Asset = Receivable + Bank and Cash + Current Assets + Prepayment (Account Type)

c) Total Asset = Fixed Asset + Current Asset (Account type)


LIABILITIES

d) Current Liabilities = Payable + Current Liabilities (Account type)

e) Long Term Liabilities = Non-current Liabilities (Account type/Reverse balance sign)

f) Total Liabilities = Current Liabilities + Long Term Liabilities (Reverse balance sign)


EQUITIES

g) Equities = Equity (Account type)

h) Net Profit For the Period = Income + Expenses + Cost of Revenue/Reverse balance sign

i) Total Equity = Total Asset + Total Liabilities (Equity + Other Income + Income + Depreciation + Expenses + Cost of Revenue)


j) Total Liabilities + Total Equity = +(Total Liabilities) + Total Equity (Account type=Equity + Other Income + Income + Depreciation + Expenses + Cost of Revenue + Payable + Current Liabilities + Non-current Liabilities)


The Free version of the Accounting reports are far from satisfying, e.g. not able to download to the Excel format, cannot view online, cannot drill down to the details level, cannot view analytic account, etc.

Alternatively, the best paid Accounting reports module, so far that i've tested, for the Odoo Community Edition, which is almost equivalent to the EE version, is this Dynamic Financial Reports.



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