Financial section is used by ERP5 to determine the structure of Income statement (Profit and Loss) and Balance sheet reports. This How To will explain how to configure financial section category and accounts to configure these reports
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Unlike GAP categories which classify the accounts according to
legal obligations and Account Type which will imply specific behavior
for accounts ( such as "Receivable accounts have a break down by Organisations
in the trial balance" ), the Financial Section category is used to
represent a company specific vision of the Profit and Loss and Balance Sheet reports.
Profit & Loss and Balance Sheet reports in ERP5 ( reports from accounting module)
are simple reports that can be configured without programming, simply by
configuring the financial section category and accounts. The idea is that the
report just shows the hierarchy of financial sections and the total balance of
all accounts members of the respective category.
The configuration consists of two aspects. First, configure your Financial Section hierarchies, which will later be displayed in your customized financial report (balance sheet, profit and loss); Second, assign each of your Account to a certain Financial Section that you just configured.
The default erp5 instance has already provided you financial reports with default structure. For example, Income statement (two column mode / single column mode) and Balance sheet.
Alternatively, the income statement can be configured to appear as only one column, with intermediate totals.
You can directly using the default financial report structure as shown above, or you can start configure your own financial sections. You can start by preparing a spreadsheet for financial section structures, you must follow
some rules regarding the id of the categories.
Default Financial Section Category Spreadsheet
income - expense
Note that dynamic configuration such as “This account is asset if it has a debit
balance or liability if it has a debit balance” are not supported by this
report. One workaround is to use two accounts and make an adjustment accounting
transaction at the end of period.
Once these categories are created, you are ready to assign each of your Accounts to a certain financial section.
Each country have its own Chart of Accounts, and each company will specify its own Accounts according to its business. You can create easily customized Accounts in erp5 Account Module, for each Account, you just need to pick out the targeted financial section you want to assign this Account to.
Tips: enable Financial Section as a column on account module to make sure you did not forget any of them.
After this step is completed, now you are able to produce your customized balance sheet and profit and loss report.