This is the documentation for older versions of Odoo (formerly OpenERP).

See the new Odoo user documentation.

See the new Odoo technical documentation.

Company Financial Analysis

You'll see here the analysis tools for your company's financial situation, in particular:

  • management indicators,

  • budgets,

  • the accounting dashboard.



Financial Indicators

Indicators, sometimes called financial ratios, are tools for analyzing a company's finances. They enable you to compare two accounts or sets of accounts from the balance sheet or the profit and loss account, in the form of a ratio. They also let you measure the financial health of a company and make comparisons from one year to the next or against those of other companies.

To define financial indicators in Open ERP you should install the module account_report. When installing the module the usual financial indicators are registered in Open ERP.

You can consult your indicators, calculated in real time, from the menu Financial Management ‣ Reporting ‣ Custom Reports.

Indicators defined by default in Open ERP are the following:

  • Indicators of Working Capital : determines if the company can pay its short term debts in normal conditions. It's calculated from (Stocks + Cash + Current Assets) / Current Liabilities .

  • Financial Ratios : enables you to calculate the company's liquidity. It is defined as follows: ( Current Assets Stocks) / Current Liabilities .

  • Fixed Assets : in a going concern, the value of fixed assets are covered in the first place by owners' capital and in the second place by all of the long term liabilities. Ideally this indicator will be greater than 1.


Calculation of indicators

Calculating indicators can take quite a while in Open ERP because you have to analyse the whole company's accounting entries.

So it's best not to calculate all of the indicators at once, but just a small selection to keep calculation time within limits.

Time analysis of indicators

You can analyze the financial indicators along two axes. You must have a figure calculated at a particular instant of time when you compare accounts, balances and the ratios between them. But you can also calculate a time series to follow the change of a given indicator throughout the life of the company.

To do a temporal analysis of your indicators, you must install the module account_report_history from the set of modules in addons-extra.

Once this module is installed, you can click on a financial indicator to get a graph of its evolution in time.


History of an accounting indicator

Defining your own indicators

You can define your own indicators in Open ERP using the menu Financial Management ‣ Configuration ‣ Custom Reporting ‣ New Reporting Item Formula.


Defining a new indicator

You should make sure that the accounts that you base indicators on are given unique account codes, because codes are used in the creation of formulae. Create a formula using the syntax indicated in the instructions at the bottom of the form:

  • Sum of debits in a general account: debit('12345') ,

  • Sum of credits in a general account: credit('12345') ,

  • Balance of a general account: balance('12345') ,

  • Value of another indicator: report ('IND') .


  • 12345 represents the code of a general account,

  • IND represents the code of another indicator.

So, using this notation, the cash ratio is defined by balance('4', '5') / balance('1') – that's the balance in accounts 4 and 5 divided by the balance in account 1.

Good management budgeting

Open ERP manages its budgets using both General and Analytic Accounts. You'll see how to do this here for General Accounts and then in 辅助核算 for Analytical Accounts. Install account_budget to be able to do this.

Use the menu Financial Management ‣ Budgets ‣ Budget to define a new budget.


Budget Revisions

Even though you can modify a budget at any time to make a revision of it, it's best if you don't do that.

Rather than edit an existing budget document, make a new version so that you can keep your original estimates safe for comparison. This lets you analyze your changing perspectives of the company from revision to revision.

Begin data entry by entering a Name, a Code, and a Start Date and an End Date in your new budget. Then you can define the budgeted amounts within that period, one by one. For each, you define:

  • an Analytic Account

  • a Budgetary Position : for example Sales or Purchases,

  • a Start Date and End Date for the use of the budget,

  • a Planned Amount in the default currency of the chart of accounts.

Once it's completed you can save your budget.

To print a budget and make calculations of expenditure to budget use the menu Financial Management ‣ Budgets ‣ Budget Open ERP then gives you a list of available budgets. Select one or more budgets and then click Print Budgets to create the report for each in a date range of your choosing. The figure Printing a budget gives an example of a budget produced by Open ERP.


Printing a budget

You could also use the menu Financial Management ‣ Reporting ‣ Budgets which gives you a choice of one or more Budgetary Position entries before clicking Budget and choosing a date range. This gives a budgetary analysis report for each of the positions.




If you've installed the module board_account, Open ERP gives you an accounting dashboard that can be presented to your accounting staff as they sign into the system (if you have set it as their Home Page). This dashboard provides an analysis of the company's financial health at a glance.

This gives a description of the different parts of the dashboard, from top to bottom then from left to right:

  • Analytic accounts to close : when you're managing cases each analytical account is a project or a contract. This area gives the accounts that must be closed (for example, contracts expired, support hours exceeded).

  • Accounts to invoice : shows analytical accounts where there are charges to be invoiced.

  • Draft invoices : gives the list of invoices waiting to be approved by an accountant.

  • Costs to invoice : gives the weekly changes which can be, but haven't yet been, invoiced.

  • Aged receivables : gives a weekly graph of the receivables that haven't yet been reconciled.

  • Aged income : gives a weekly graph of the company's turnover.

In each panel of the accountants' dashboard you can click the Zoom button at the top right to investigate the detail of your financial indicators.

The Accounting dashboard is dynamically integrated, which means that you can navigate easily through the data if you want more detail about certain factors, and edit the entries if necessary.