ERPNext Accounting Reports

1. Company and Accounts

General Ledger

General Ledger is one of the most important accounting reports in ERPNext. It offers a thorough overview of every transaction that has been entered into your system, broken down by account. The General Ledger shows both sides of every transaction, and every accounting entry includes at least one debit and one credit.

You can access general ledger by going to:

The GL Entry table, the foundation of ERPNext's accounting engine, powers this report. It keeps track of all financial transactions, including journal entries, payments, invoices, and other kinds of transactions.

The General Ledger Report's salient features include:

1. Detailed Listing of Transactions

This is a list of all debits and credits made to all accounts. This enables accountants to track the flow of funds or value throughout the company.

2. Strong Filters

Several filters, including Account, Cost Centre, Party (Customer/Supplier), Project, and Date Range, are available in the report. These filters assist in focussing the data on particular needs, such as verifying all transactions with a particular supplier during a given month.

3. Grouping Options

You can group the results by:

• Account (to view every entry in a single ledger),

• Voucher/Transaction (to determine the precise entry's source),

• Party (to observe activities involving a particular client or supplier).

4. Opening and Closing Balances

The report displays the opening balance, debits, credits, and closing balance for every group (such as an account). This makes sure there are no unexpected entries and that the books are balanced.

5. Multi-Currency Support

This report enables viewing transactions in the transaction currency, party currency, or company's base currency for businesses that deal with multiple currencies. This is particularly helpful when interacting with foreign clients or vendors or when balancing bank accounts abroad.

2. Accounting Statements

2.1 Accounts Payable and Receivable (AR/AP)

ERPNext's Accounts Receivable (AR) and Accounts Payable (AP) reports are crucial for handling the inbound and outgoing payments for your business.

To access them, go to:

These reports clearly show the amounts your business owes to suppliers (AP) and the outstanding balances that your customers owe (AR).

2.1.1 Accounts Receivable:

A list of unpaid or partially paid sales invoices arranged by customer is displayed in the Accounts Receivable report. For every client, you can see:

• Total invoiced amount

• Amount paid

• Unpaid balance

• Receivables' ageing

This helps in determining which clients are past due and for what duration; they are frequently categorised as 0–30 days, 31–60 days, 61–90 days, and over 90 days.

2.1.2. Accounts Receivable based on Payment Terms:

You can also view AR by Payment Terms using ERPNext. The invoice's payment terms specify how it is divided into several due dates (for example, 50% due in 15 days, 50% in 30 days).

By selecting the "Based on Payment Terms" option in the Accounts Receivable report, you can make this view available. When activated, the report displays:

• Amount invoiced for each term of payment

• Amount paid for each term

• Amount Due Based on Due Dates

The earliest dues are paid off first when payments are applied to the terms using the FIFO (First In, First Out) method. Based on the customer's agreed-upon payment schedules, this report provides a more realistic view of short-term cash inflows.

2.1.3. Accounts Payable:

To access this, go to:

This report functions similarly, but it keeps track of the money owed to suppliers by your business. It displays:

• The total amount of the bill

• The sum paid

• The remaining sum owed

• Ageing of amounts due

This helps with better vendor relationship management and outgoing payment planning.

To sum up, these AR/AP reports are essential for managing cash flow because they tell you who is owed money, who you must pay, and how quickly these transactions are completed. They are effective tools for finance teams because they can be filtered by dates, parties, and terms.

2.2 Trial Balance

One of the most basic financial reports in accounting is the trial balance. For a specific reporting period, it offers a snapshot of all account balances, both credit and debit. This report is available in ERPNext by going to:

To access the report, go to:

Verifying the double-entry bookkeeping system's mathematical accuracy is the primary goal of the trial balance. It guarantees that there is a matching credit entry for each debit entry made in the system and that the sum of the two sides should equal one another. Otherwise, it usually indicates a mistake in ledger postings or journal entries.

The ERPNext Trial Balance Report's columns include:

1. Opening (Dr.): This displays an account's initial debit balance as of the chosen period's "From Date." This is the balance carried forward prior to any July transactions, for instance, if your period begins on July 1st.

2. Opening (Cr): For the same "From Date," this is the opening credit balance. Credit balances are naturally present in some accounts (such as Revenue or Liabilities), and they show up here.

3. Debit: The total number of debit transactions that were posted to the account over the chosen time period is shown in this column. For instance, assets or expenditures rose.

4. Credit: This displays all of the account's credit transactions during the chosen time frame, including increased liabilities and income.

5. Closing (Dr):

The debit balance (as of "To Date") at the conclusion of the chosen period. It is computed as:

Opening (Dr) + Credits (if still debit) - Debits

6. Closing (Cr):

This is the credit balance as of "To Date." It is the outcome of:

Opening (Cr) + Credits - Debits (if credit remains)

2.2.1. Additional Options in the Trial Balance Report:

1. Include Period Closing Entries: The impact of closing entries, such as closing Profit and Loss to Retained Earnings, can be included or excluded.

2. Show/Hide Zero Balance Accounts: This feature aids in streamlining the report by concealing accounts with zero balance or no activity.

3. Show Unclosed P&L Balances of Previous Fiscal Year: This option displays carried-over income and expense balances if you haven't made a period closing entry for the prior year.

To maintain uniformity across all financial reports, all balances and transactions in the Trial Balance are shown in the company's base currency.

2.3 Balance Sheet

One important financial document that displays the company's equity, liabilities, and assets as of a given date is the balance sheet. It shows the state of your company's finances at that moment, including what you own and owe. This interactive report in ERPNext lets you compare balances across several years and filter by year, cost centre, or finance book. To properly analyse foreign figures, you can also alter the display currency.

2.4 Statement of Cash Flow

The actual inflow and outflow of cash and cash equivalents over a chosen time period are displayed in the cash flow statement. It aids in determining whether your company has enough cash on hand to pay for its operations, debts, and investments. ERPNext helps you examine how money is being made and spent by classifying cash flows into operating, investing, and financing activities.

2.5 Statement of Profit and Loss (P&L Statement)

The income statement, sometimes referred to as the profit and loss statement, provides a summary of the net profit or loss, expenses, and revenues for a given time period. It is employed to evaluate the profitability, efficiency, and performance of the business.

ERPNext provides the option to filter by project, cost centre, or finance book and compare P&L over a number of years or periods. Additionally, you have the option to switch between accumulated and period-only balances and view monthly or quarterly trends.

2.6 Financial Statements Consolidated

When your company has several businesses (subsidiaries) operating under a Group Company structure, you use this report. All companies' balance sheets, P&Ls, and cash flows are combined into a single report called the Consolidated Financial Statement.

ERPNext shows the combined totals for the entire group as well as the financials of each company separately. Holding companies or businesses that manage multiple legal entities under one roof is incredibly helpful.

2.7. Financial Ratios report

ERPNext's Financial Ratios Report is a helpful resource for assessing your company's financial standing. These ratios transform information from your financial statements, such as the cash flow, income statement (P&L), and balance sheet, into useful indicators. You can learn more about your company's profitability, liquidity, and leverage by using these ratios. They are frequently used by management, auditors, and investors to help them make well-informed decisions.

Calculation Assumptions:

• Net Sales = Direct Income

• Direct Income = Credit Sales

• Credit Purchases = Direct Cost

• Shareholder Fund (SHF) = Total Assets - Total Liabilities

• Net Profit After Income & Taxes (NPAIT) = Total Income - Total Expense

2.7.1. Liquidity ratios

These ratios measure your business's ability to meet short-term obligations; in other words, are you able to pay your bills?

2.7.1.1. Current Ratio = Current Assets / Current Liabilities

• This ratio lets you know if your business has enough short-term assets to pay off its short-term debts.

• In general, a value larger than one indicates strong liquidity.

2.7.1.2. Quick Ratio = Quick Assets / Current Liabilities

• Since inventories are not included in current assets, this is a more stringent test of liquidity.

• It indicates whether you can pay short-term debts without using stock.

To make these function in ERPNext:

Make sure the Chart of Accounts has the appropriate account types set.

• Current Assets: Cash, bank accounts, receivables, etc.

• Current Liabilities: Short-term loans, payables, etc.

2.7.2 Debt Equity and Profitability ratios

These ratios give you insight into your company's debt load, profitability, and asset utilisation.

2.7.2.1 Debt-Equity Ratio = Total Liabilities / Shareholders' Fund (SHF)

• calculates your financial leverage, or the extent to which you are dependent on debt.

• A higher ratio means higher risk.

2.7.2.2 Gross Profit Ratio = (Net Sales-COGS) / Net Sales

• Shows your profit after subtracting the cost of goods sold.

• Higher means better profitability.

2.7.2.3 Net Profit Ratio = NPAIT / Net Sales

• Shows your net profit for each rupee sold.

• Reflects overall efficiency.

2.7.2.4 ROA (Return on Assets) = NPAIT / Total Assets

• Shows the efficiency with which your assets produce profit.

2.7.2.5 NPAIT / Shareholders' Fund = Return on Equity (ROE)

• Shows the rate of return on investment for shareholders.

2.7.3. Turnover ratios

These ratios measure how well you use your resources and assets over time.

2.7.3.1. Fixed Asset Turnover Ratio = COGS / Average Stock

• Shows how effectively you use inventory to support sales and production.

2.7.3.2. Debtor Turnover Ratio = Credit Sales / Average Debtors

• This ratio measures how quickly you receive payments from clients.

• Higher ratio means faster collections.

2.7.3.3. Credit Turnover Ratio = Credit Purchases / Average Creditors

• Shows how often you pay your suppliers.

• A lower ratio may indicate delayed payments.

2.7.3.4. Inventory Turnover Ratio = Net Sales / Total Assets

• Shows how often your inventory is sold and replaced.

• Higher ratio = efficient inventory management.

Average Formula:

For stock/debtors/purchases - (Opening of first year + Closing of last year) / 2.

3. Taxes

3.1. Sales and Purchases Register

ERPNext's Sales and Purchase Register reports offer a comprehensive list of every sales invoice and purchase invoice produced within a chosen time frame. Columns for invoice amount, tax amounts, and net totals, broken down by specific tax types (such as VAT, GST, etc.), are included in these reports. You can easily keep track of how much tax was paid to suppliers or collected from customers because each tax component is displayed in its own column. When preparing statutory tax filings or reconciling with government tax requirements, this structure is extremely beneficial.

4. Budget and Cost Centre

4.1. Budget Variance

To access this, got to:

ERPNext's Budget Variance Report facilitates the comparison of your budgeted and actual expenses for particular cost centres and accounts. Budgets can be allocated to expense accounts, and you can track how much of the budget has been spent over a chosen time frame—monthly, quarterly, or annually. The report helps you better manage your finances and prevent overspending by displaying the variance, or the difference between actual spending and the budgeted amount. It is an essential tool for tracking performance and financial planning.

5. Analytics

5.1. Sales Invoice Trend

ERPNext's Sales Invoice Trends report gives you a comprehensive picture of your sales performance over time. Grouped by month, quarter, half-year, or year, it displays trends based on invoice data, including quantity sold and sales amount. This aids companies in determining their top-selling items, tracking seasonal demand, and analysing sales performance patterns over predetermined periods of time. Based on past data, it's a useful tool for strategic planning and sales forecasting.

5.2. Purchase Invoice Trends

The monthly, quarterly, half-yearly, or annual purchasing activity of your business is tracked by the Purchase Invoice Trends report. It assists you in identifying your most frequently purchased items and general purchasing patterns by displaying the quantity of items purchased as well as the total purchase value. Maintaining ideal inventory levels, predicting future procurement requirements, and managing supplier relationships can all benefit from this trend analysis.

6. To Bill

6.1. Delivered Items To Be Billed

All of the items that have been delivered to clients but for which a sales invoice has either not been created or has only been partially created are listed in this report. In order to guarantee prompt invoicing, it assists the sales and accounts teams in tracking unbilled deliveries. Accurate cash flow management and revenue recognition depend on this report. Businesses can improve their accounts receivable cycle and minimise billing delays by pursuing these outstanding invoices.

6.2. Received Items To Be Billed

All goods that have been received from suppliers but for which a purchase invoice has not yet been issued or has only been partially issued are listed in the Received Items To Be Billed report. This makes it easier to make sure that all incoming inventory is accurately tracked down and compared to supplier invoices. Additionally, it guarantees accurate expense recognition and avoids missing payables. Procurement and finance teams can use the report to confirm which receipts are still awaiting billing.

7. Other Reports

7.1. Party Type Trial Balance

The trial balance can be viewed in this report by party type, including suppliers, employees, shareholders, and customers. This report summarises the total debit and credit balances for each type of party rather than showing the balances for individual parties. Without getting into the specifics of each party, it's helpful when you want to examine your payables and receivables or any other transactions according to the kind of party involved.

7.2. Customer Credit Balance

Each customer's credit limit, amount owed, and available credit balance are displayed in this report. It assists in determining which clients are over or within their credit limit. Companies use this data to determine whether to ask for payment before completing new orders or to keep making sales on credit. It's particularly helpful for managing credit and lowering the likelihood of bad debts.