Case 3 : IT Services Company

202 Automated Entries Analytic accounting is totally integrated with the other Open ERP modules, so you never have to re- enter the records. They are automatically generated by the following operations: • confirmation of an invoice generates analytic entries for sales or purchases connected to the account shown in the invoice line, • the entry of a service generates an analytic entry for the cost of this service to the given project, • the manufacture of a product generates an entry for the manufacturing cost of each operation in the product range. Other documents linked to one of these three operations produce analytic records indirectly. For example, when you are entering a customer sales order you can link it to the customer’s analytic account. When you are managing by case or project, mark the project with that order. This order will then generate a customer invoice, which will be linked to the analytic account. When the invoice is validated it will automatically create general and analytic accounting records for the corresponding project. Expense receipts from an employee can be linked to an analytic account for reimbursement. When a receipt is approved by the company, a purchase invoice is created. This invoice represents a debit on the company in favour of the employee. Each line of the purchase invoice is then linked to an analytic account which automatically allocates the costs for that receipt to the corresponding project. To visualize the general entries following these different actions you can use one of the following menus: 1. To see all of the entries, Accounting → Journal Entries → Analytic Journal Items 2. To see the entries per account, per user, per product or per partner, you can use menu Accounting → Reporting → Statistic Reports → Analytic Entries Analysis.

16.3.3 Analytic Models

Using Analytic Model concept you can distribute your income or expense to your analytic accounts. You can define your analytic plans using menu Accounting → Configuration → Analytic Accounting → Multi Plans → Analytic Plan. Figure 16.6: Definition of Analytic Plan Using the link Distribution Models given on right side of Analytic Plan form, you can define the distribution of either your expenses while creating supplier invoice or revenue when defining customer invoices. Figure 16.7: Definition of Distribution Models 203 As for example, when you create the invoice suppose 1000 EUR for the product ‘Client Project’ with analytic distribution that we defied as above. When invoice has been validated then you can find the Analytic Journal Entries with distributed amount among the analytic account using the menu Accounting → Journal Entries → Analytic Journal Items. Figure 16.8: Journal Entries with distributed amount You can also specify default ‘Analytic Distribution’ for particular product, partner, user and company for specific time interval using the menu Accounting → Configuration → Analytic Accounting → Analytic Defaults.

16.4 Financial Analysis

Various reports designed for financial analysis are based on the analytic accounts. Most of those are available directly from the tree of accounts or from the form view of the account.

16.4.1 Analysis per account

From an Analytic Account form, click on one of the REPORTS buttons to select a report. Open ERP provides the following financial analyses from the analytic accounts and maybe more, depending on the additional installed modules: • Cost Ledger, • Cost Ledger quantities only. • Inverted Analytic Balance, • Analytic Balance, The cost ledger The cost ledger provides all of the detailed entries for the selected accounts. It enables you to make a detailed analysis of each operation carried out on one or several projects.