General Ledger and Trial Balance¶
To print the General Ledger, you can use the menu Accounting ‣ Reporting ‣ Legal Reports ‣ Accounting Reports ‣ General Ledger. You will find the following wizard which is used to filter the resulting report.
Select the proper options and journal(s) from the above wizard to print the General Ledger.
While you are printing account balances, if you have installed the account_simulation module from extra-addons, OpenERP asks you which level of simulation to execute.
Results will vary depending on the level selected. You could, for example, print the balance depending on various methods of amortization:
the normal IFRS method,
the French method.
More generally, it enables you to make analyses using other simulation levels that you could expect.
To print the Trial Balance, you can use this menu Accounting ‣ Reporting ‣ Legal Reports ‣ Accounting Reports ‣ Trial Balance. This report allows you to print or generate a PDF of your trial balance, allowing you to quickly check the balance of each of your accounts in a single report.
You can print the General Ledger and Trial Balance report directly from the Account form also.
Balance Sheet and Profit & Loss Report¶
OpenERP also offers a Balance Sheet and a Profit & Loss Report.
A Balance Sheet is a financial statement that summarises the assets, liabilities and shareholders' equity of a company at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders.
The balance sheet must follow the following formula:
Assets = Liabilities + Shareholders' Equity.
A balance sheet is often described as a snapshot of a company's financial condition.
The Profit & Loss Report is a financial statement which gives a summary of the revenues, costs and expenses during a specific period of time. Such a report provides information that shows the ability of a company to generate profit by increasing revenue and reducing costs. The P&L statement is also known as an "Income Statement".
The result shown in this report, is a the net profit or loss of a business.
In general, the Profit and Loss report will be used to determine profit ratios, to examine sales prices and costs, and to set marketing budgets, for instance.
The Accounting Journals¶
To configure the different journals use the menu Accounting ‣ Configuration ‣ Financial Accounting ‣ Journals ‣ Journals.
OpenERP provides three main reports regarding the journals:
To print Journals, use the menu Accounting ‣ Reporting ‣ Legal Reports ‣ Journals ‣ Journals.
To print General Journals, use the menu Accounting ‣ Reporting ‣ Legal Reports ‣ Journals ‣ General Journals.
To print Centralizing Journal, use the menu Accounting ‣ Reporting ‣ Legal Reports ‣ Journals ‣ Centralizing Journal.
Information required for a tax declaration is automatically generated by OpenERP from invoices. In the section on invoicing, you will have seen that you can get details of tax information from the area at the bottom left of an invoice.
You can also get the information from the accounting entries in the columns to the right.
OpenERP keeps a tax chart that you can reach from the menu Accounting ‣ Charts ‣ Chart of Accounts. The structure of the chart is for calculating the tax declaration, but all the other taxes can be calculated also(such as the French DEEE).
The tax chart represents the amount of each area of the tax declaration for your country. It is presented in a hierarchical structure which lets you see the detail only of what interests you and hides the less interesting subtotals. This structure can be altered as you wish to fit your needs.
You can create several tax charts if your company is subject to different types of tax or tax-like accounts, such as:
ecotaxes, such as the French DEEE for recycling electrical equipment.
Each accounting entry can then be linked to one of the tax accounts. This association is done automatically by the taxes which had previously been configured in the invoice lines.
Some accounting software manages the tax declaration in a dedicated general account. The declaration is then limited to the balance in the specified period. In OpenERP, you can create an independent chart of taxes, which has several advantages:
it is possible to allocate only a part of the tax transaction,
it is not necessary to manage several different general accounts depending on the type of sale and type of tax,
you can restructure your chart of taxes as you need.
At any time, you can check your chart of taxes for a given period using the report Accounting ‣ Reporting ‣ Generic Reporting ‣ Taxes ‣ Taxes Report.
This data is updated in real time. This is very useful because it enables you to preview at any time the tax that you owe at the start and end of the month or quarter.
Furthermore, for your tax declaration, you can click on one of the tax accounts to investigate the detailed entries that make up the full amount. This helps you search for errors, such as when you have entered an invoice at full tax rate when it should have been zero-rated for an inter-community trade or for a charity.
In some countries, tax can be calculated on the basis of payments received rather than invoices sent. In this instance, choose Payments instead of Invoices in the Based On field. Even if you make your declaration on the basis of invoices sent and received, it can be helpful to compare the two reports to see the amount of tax that you pay but have not yet received from your customers.