Financial Reports

We will explore the effect of standard processes in SAP Business One on financial reports: such as the Balance Sheet, the Trial Balance, and the Profit and Loss report.  We describe when to use each report and how to interpret typical report data.

Here are some key points to take away:

1. In the General Ledger, you distinguish between Balance Sheet Accounts and Income Statement Accounts, which are also called Profit and Loss Accounts.
2. The different financial reports run on the account balances.
3. The financial reports present the account balances according to a selected date or range and their drawer, level and type.
4. The balance sheet report is based on the balance sheet accounts.  It presents the company’s value using the formula: Total Assets = Total Liabilities + Equity. The report displays the relative percentage of each balance.
5. The profit and loss statement is based on all profit and loss accounts. It presents the profit or loss of your business. The profit or loss for the selected period equals the difference between the balances of the revenue accounts and the balances of the expense accounts.
6. The trial balance is based on all account types. This report presents a summary of all accounts and/or business partner balances.  For each account, the report shows the total debit and credit amounts and the ending balance.  If the trial balance includes all the accounts in a complete period, the report balance will be zero.

You can also download the document here for your records.