frappe / erpnext

Free and Open Source Enterprise Resource Planning (ERP)
https://erpnext.com
GNU General Public License v3.0
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Detailed Profit and Loss Statement #39923

Open smbcatalyst opened 9 months ago

smbcatalyst commented 9 months ago

ERPNext is providing very basic view for profit and loss statement which is not useful for analysis purpose. It should show Gross Profit, EBITDA, PBT, PAT and Net Profit as all the softwares provide the same. I have attached the same in attached file. Can we consider this as a feature request and work on the same to priority? (As it is just a restructuring of Accounts group (account type), it will not take much time)

<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns="http://www.w3.org/TR/REC-html40">

Revenue | Sales Generated from Selling Products/Services to Customers -- | -- Less: Cost of Goods Sold (COGS) | Costs Directly Associated with Core Revenue Production Gross Profit | Gross Profit = Revenue – COGS Less: Operating Expenses (SG&A) | Indirect Costs NOT Directly Related to Revenue Creation Operating Income (EBITA) | EBITA = Gross Profit – Operating Expenses Less: Interest Expense, Depreciation, Amortisation | Periodic Payments on Debt Obligation (i.e. the Cost of Debt Financing) Pre-Tax Income (EBT) | EBT = EBIT – Interest Expense - Depreciation - Amortisation Less: Taxes | Legally Mandatory Payments to the City, State, and Federal Government Net Income (“Bottom Line”) | Net Income = EBT – Taxes

Format MIS (1).xlsx

umairsy commented 6 months ago

@ruthra-kumar @deepeshgarg007 could we review this, please?

agritheory commented 6 months ago

It would be better to have the ability to configure arbitrary calculated line items in the P&L. The Report format above is non standard and in my experience, different companies and industries have different needs. Also, the nomenclature is is inconsistent between jurisdictions or accounting conventions, Gross Profit and Gross Margin are often used interchangeably, until they are used in the same P&L to mean different things.

This specification, as proposed, is inflexible and too specific. In order to met smbcatalyst's needs, I'd propose a low code report builder that exposes the functions inside financial_statements.py in a way that they can be composed by collecting account ranges to meet the needs of different businesses and jurisdictions.

I'd be happy to provide some examples.

vorasmit commented 4 months ago

@agritheory,

Can you share some examples? Following is what I could best think of.

Proposal 1

Make account type extensible

Account Type is used for multiple scenarios and having bifurcation for use cases could be useful.

Suggested Changes:

Financial Report Template

Country Specific Templates

Potential Issues

Proposal 2

No need to make any changes to account type and build completely independent Financial Report Template

Drawbacks


Major difference between proposal 1 and 2 is how accounts are grouped and selected in Report Template

Questions