Disbalance Journal Entries

Disbalance Journal Entries refer to transactions recorded in a company’s books that result in an imbalance or discrepancy in the accounting equation. The accounting equation states that assets equal liabilities plus equity. When a disbalance occurs, it means that the total debits don’t equal the total credits in a transaction. This could happen due to errors, omissions, or incorrect recording of transactions. Identifying and correcting these disbalances is important to ensure accurate financial reporting.

To generate Disbalance Journal Entries Report here are the steps to follow:
1. Go to Financials.
2. Select Financial Statement.
3. Click Disbalance Journal Entries.

4. Enter Start Date and End Date.

5. Select the branch you want to generate.

6. Click the Generate button to display the data on the list.

Income Statement

An income statement, also known as a profit and loss statement (P&L), is a financial statement that summarizes the revenues, expenses, and profits or losses of a business over a specific period of time. The primary purpose of the income statement is to show the company’s ability to generate profit by increasing revenue, controlling costs, and managing expenses.

Here’s what an income statement does and what it typically includes:

• Revenue:

• • Represents the total amount of money earned from the sale of goods or services.
  • Revenue is sometimes broken down into categories, such as sales revenue, service revenue, or other sources of income.

• Cost of Goods Sold (COGS):

• • Represents the direct costs associated with producing goods or services.
  • This includes costs like raw materials, labor, and manufacturing overhead directly tied to production.

• Gross Profit:

• • Calculated by subtracting the cost of goods sold from total revenue.
  • Gross profit reflects the profitability of a company’s core business activities.

• Operating Expenses:

• • Includes expenses related to the day-to-day operations of the business, such as salaries, rent, utilities, marketing, and administrative costs.
  • Operating expenses are deducted from the gross profit to arrive at operating profit.

• Operating Profit (Operating Income):

• • Obtained by subtracting operating expenses from gross profit.
  • Operating profit represents the profit generated from the core business operations before considering interest and taxes.

• Other Income and Expenses:

• • Includes non-operating items such as interest income, interest expenses, gains, and losses from investments.
  • These items are not directly related to the main business activities.

• Profit Before Tax (PBT):

• • Calculated by adding other income and subtracting other expenses from operating profit.
  • PBT represents the company’s profit before considering income taxes.

• Income Tax Expense:

• • Represents the amount of income tax owed by the company based on its taxable income.
  • The income tax expense is subtracted from PBT to arrive at net profit.

• Net Profit (Net Income):

• • The final line on the income statement, representing the company’s profit after all expenses, taxes, and other income or losses.
  • Net profit is a key indicator of a company’s overall financial performance.

What the income statement does:

• Performance Measurement: It provides a summary of the company’s financial performance over a specific period, indicating whether the business is generating a profit or incurring a loss.
• Profitability Analysis: Investors, creditors, and management use the income statement to assess the company’s ability to generate profit, control costs, and manage its operations efficiently.
• Decision-Making: The income statement helps management make informed decisions regarding pricing strategies, cost management, and overall business operations.
• Financial Planning: It serves as a basis for financial planning and forecasting, helping businesses set realistic goals and allocate resources effectively.

In summary, the income statement is a crucial financial statement that provides insights into a company’s ability to generate profit and manage its expenses. It is a key tool for assessing financial performance and making informed decisions about the business.

In the Income Statement Report in the system there are different types of report

Here are the report types of the income statement

• Default

• • The default report type is the consolidated report of all the branches in the specific company.

• • Here is an example of the Income Statement, Report type Default.

• Per Branch Report

• • Per Branch Report type is a type of report that shows only a specific branch for the income statement.

• • Here is an example of the Income Statement Per Branch Report

• Monthly Comparison

• • This report will generate a comparison depending on the date range that was selected. The data that is generated in this report is still consolidated Income Statement
  • Here is an example of the Monthly Comparison Report of Income Statement

• Comparative

• • This report is different from monthly comparison, this will only show two specific dates, months or years to compare.
  • Here is an example of the comparative report

Note: All the report types in the income statement should be sorted by manual code of the account and account type.

Cash Flow Statement

The cash flow statement is a financial statement that provides an overview of how cash and cash equivalents move in and out of a business during a specific period. It’s one of the three main financial statements, along with the income statement and balance sheet. The cash flow statement is crucial for assessing a company’s liquidity, solvency, and ability to meet its financial obligations.

Here’s what a cash flow statement does and what it typically includes:

• Operating Activities:

• • Cash Inflows: Represents cash generated from the core business operations, such as cash received from customers, interest, and dividends.
  • Cash Outflows: Represents cash payments for operating expenses, suppliers, employees, and other day-to-day operational costs.

• Investing Activities:

• • Cash Inflows: Represents cash received from the sale of investments, property, plant, equipment, or other assets.
  • Cash Outflows: Represents cash spent on the acquisition of investments, property, plant, equipment, or other assets.

• Financing Activities:

• • Cash Inflows: Represents cash received from issuing stock or taking on debt, including loans and bond issuances.
  • Cash Outflows: Represents cash payments for dividends, repayment of debt, or the repurchase of stock.

• Net Cash Flow:

• • Calculate the net cash flow for each category (operating, investing, financing) by subtracting cash outflows from cash inflows.
  • The net cash flow provides a summary of the overall cash movement for a specific period.

• Beginning and Ending Cash Balance:

• • The beginning cash balance is the amount of cash and cash equivalents at the start of the period.
  • The ending cash balance is the amount of cash and cash equivalents at the end of the period, calculated by adding the net cash flow to the beginning cash balance.

What the cash flow statement does:

• Liquidity Assessment: It helps assess a company’s ability to generate cash to meet its short-term and long-term obligations.
• Operational Performance: Investors and analysts use the cash flow statement to evaluate the cash-generating capabilities of a company’s core operations.
• Investment and Financing Decisions: Businesses and investors use the cash flow statement to make informed decisions about investing, financing, and overall financial strategy.
• Risk Evaluation: The statement helps assess a company’s financial risk by providing insights into its cash flow trends and sources of cash.
• Reporting Transparency: It enhances financial reporting transparency by presenting a detailed breakdown of cash flows from different activities.

In summary, the cash flow statement is a crucial tool for understanding how cash moves within a business. It provides valuable insights into a company’s financial health, operational efficiency, and its ability to meet financial obligations.

In the Cash Flow Report there different types of report

Here are the type of report that are shown in the system

• Default

• The Default report type is the consolidated report of all the branches for the company.

• Here is an example of default report type of Cash Flow

• Per Branch

• This report type will allow the user to view the Cash Flow report in a Specific branch only.
• Here is an example of Per Branch report of the Cash FLow

• Comparative

• This report is different from monthly comparison, this will only show two specific dates, months or years to compare.
• Here is an example of Cash Flow comparative report

• Monthly Comparison

• This report will generate a comparison depending on the date range that was selected. The data that is generated in this report is still consolidated Cash Flow Report
• Here is an example of monthly comparison report of cash flow

Note: All the report types in the Cash Flow  should be sorted by manual code of the account and account type.

Chart of Accounts

Chart of Accounts is a report wherein the user can generate the index of all of the financial accounts in a company’s general ledger. In short, it is an organizational tool that lists by category and line item all of the financial transactions that a company conducted during a specific accounting period.

To generate Chart of Accounts, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Select Chart of Accounts
4. click Functions to download the data
5. Printing and PDF download are also available

Top Expenses

Top expenses is a report wherein the user can generate all top expenses accounts and its amount base from the given date range.

To generate Top Expenses, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Select Top Expenses
4. Enter the Start and End Date
5. Click Functions to Download Data

Top Income

Top Income is a report wherein the user can generate all top expenses accounts and its amount base from the given date range.

To generate Top Expenses, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Select Top Income
4. Enter the Start and End Date
5. Click Functions to Download Data

Receiving Receipt Book

Receiving Receipt Book is a document report used to record the receipt of goods or services. This book serves as a record of received  goods or services, helping businesses track their inventory and expenses accurately.

To generate Receiving Receipt Book, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Click Receiving Receipt Book
4. Enter Start and End Date
5. Select Branch
6. Click Functions to Download Data

Disbursement Book

A Disbursement book, also known as a Cash Disbursement Journal, is a record of all payments made by a business. This book helps businesses track their expenses, manage cash flow, and maintain accurate financial records for accounting and auditing purposes.

To generate Disbursement Book, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Click Disbursement Book
4. Enter Start and End Date
5. Select Branch
6. Click Functions to Download Data

Debit Memo Book

A Debit Memo Book is a record used to document transactions where a company debits or reduces the amount owed by a customer or supplier. Debit memos are often used to correct errors in billing, adjust for returns or allowances, or resolve disputes with customers or suppliers. This book helps maintain accurate records of adjustments to accounts receivable or accounts payable.

To generate Debit Memo Book, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Click Debit Memo Book
4. Enter Start and End Date
5. Select Branch
6. Click Functions to Download Data

Sales Invoice Book

A Sales Invoice Book is a report used to record all sales transactions made by a business. Sales invoice books help businesses keep track of their sales revenue, monitor inventory levels, and provide customers with documentation of their purchases. Additionally, they serve as essential records for accounting, tax compliance, and financial analysis purposes.

To generate Sales Invoice Book, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Click Sales Invoice Book
4. Enter Start and End Date
5. Select Branch
6. Click Search Button
7. Click Functions to Download Data

Collection Book

A Collection Book, also known as a Cash Receipts Journal or Cash Collection Register, is used to record all incoming payments or collections received by a business. Collection books help businesses track their cash inflows, monitor accounts receivable, reconcile payments with invoices, and maintain accurate financial records for accounting and auditing purposes.

To generate Collection Book, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Click Collection Book
4. Enter Start and End Date
5. Select Branch
6. Click Functions to Download Data

Credit Memo Book

A Credit Memo Book is a record used to document transactions where a company credits or reduces the amount owed by a customer or supplier. Credit memos are often issued to correct billing errors, adjust for returns or allowances, or resolve disputes with customers or suppliers. This book helps maintain accurate records of adjustments to accounts receivable or accounts payable.

To generate Credit Memo Book, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Click Credit Memo Book
4. Enter Start and End Date
5. Select Branch
6. Click Functions to Download Data

Journal Voucher Book

A Journal Voucher Book is a report used to record manual adjustments or transfers between different accounts within a business’s accounting system. Journal vouchers are used to make corrections, adjustments, or transfers that cannot be handled through regular transaction processing.

To generate Journal Voucher Book, here are the steps to follow:

1. Go to Financial
2. Select Financial statements
3. Click Journal Voucher
4. Enter Start and End Date
5. Select Branch
6. Click Functions to Download Data

Inventory Ledger Book

An Inventory Ledger Book is a record used to track the quantities and values of inventory items held by a business over time. This ledger serves as a central repository for inventory-related information, allowing businesses to monitor stock levels, track inventory movements, reconcile physical inventory counts with book balances, and analyze inventory-related costs and trends.

To generate Inventory Ledger Book, here are the steps to follow:

1. Go to Financials
2. Select Financial Statements
3. Click Inventory ledger
4. Enter Start and End Date
5. Select Branch
6. Click Preview (PDF REPORT TAB)