Data ManagementReports

Income Statement

A guide to Income Statement in Fynapse.

Overview

An income statement is an accounting report that summarizes a business’s revenue and expenses over a specific period of time.

Why Do We Need Income Statement?

The primary purpose of an income statement is to provide information if a business is profitable and displays operational efficiency. Rather than focusing on a single point in time (like Trial Balance), an income statement allows you to track the financial activity over a selected timeline, e.g. a year. Based on this information you can analyze e.g. whether a business is a good investment.

Key Characteristics

  • Available after all Journals were properly posted to the Subledger
  • Includes all Accounts from the Chart of Accounts labeled as Income Statement in the Financial Statement column
  • Provides data for a specified period in time.

Why It Matters?

The income statement report helps to:

  1. Evaluate past financial performance of a business
  2. Predict future financial performance of business
  3. Assess whether there is any risk in achieving future cash flow

Prerequisites

For income statement to work, you need to correctly configure the Chart of Accounts, so that the Accounts are correctly grouped in the report. Use the Financial Statement and Type columns to group Accounts into Income Statement and further group them within these categories, e.g. into income, expenses, etc.

For more details and a sample Chart of Accounts, refer to Chart of Accounts.

Income Statement Screen

The Income Statement screen comprises:

  • Report settings - a section which allows you to configure the dates and filters you want to use to create reports
  • The grid - the grid with the generated report
  • The display panel - located above the grid, allows you to configure how the data is displayed in the report
  • The Export button - which allows you to export the report into a CSV file

Report Settings

In order to generate a report you have to configure the following settings:

  • Reporting Currency - the currency used in the report
    • When Multiple Currencies functionality is disabled this drop-down contains Transaction currencies
    • When Multiple Currencies functionality is enabled this drop-down contains Reporting currencies
  • Timeframe - the time period for which the report will be generated
  • Comparison switch - when enabled, the report will generate a comparison between the selected time periods
    • Difference highlight threshold (%) - determines what percentage the results should differ to be highlighted in red
  • Filter - drop-down where you select dimensions from the Dimension set list that will be used to aggregate data
  • Exclude yearend cleardown journals - allows you to filter out journals from accounts configured for yearend cleardown process

Display Settings

Display settings allow you to configure how the data will be displayed in the grid.

It comprises the details of the report, i.e. Dates and Units, and allows you to configure:

  • Negative number format - default set to brackets
    • Brackets
    • Minus sign
  • Units - default set to millions
    • millions
    • thousands
    • whole number
  • Decimal places - default set to 3
    • Range 0-3

You can drill-back to the Journals that comprise the report by clicking on the amounts in the grid.

Tutorials

  1. Go to Reports > Income Statement.
  2. In the Report settings section, select the settings for the report:
    1. Currency - the currency used in the report
      1. When Multiple Currencies functionality is disabled this drop-down contains Transaction currencies
      2. When Multiple Currencies functionality is enabled this drop-down contains Reporting currencies
    2. Timeframe - the time period for which the report will be generated; by default set to Specific period
      Depending on the type of time period you specify, you will be prompted to choose either a specific date or a Fiscal Calendar.
      1. Specific date - select a specific date from the calendar
      2. Custom range - custom date range
      3. Current period - current period, determined by the selected Fiscal Calendar
      4. Current financial year to date - current financial year, determined by the selected Fiscal Calendar
      5. Current quarter to date - current quarter, determined by the selected Fiscal Calendar
      6. Specific quarter - specific quarter, Quarter and Year selected from the selected Fiscal Calendar
      7. Specific financial year - specific financial year, selected from the selected Fiscal Calendar
    3. Comparison - when enabled, the report will generate a comparison between the selected time periods; comparison always mirrors the selected timeframe, e.g. period vs period in for Specific period Execptions are Current period, Current financial year to date and Current quarter to date - comparison with a selected time range
      1. Difference highlight threshold (%) - set the percentage value above which differences will be highlighted in red
  3. In the Filter section, from the Attributes drop-down select the dimensions you want to use to aggregate the data. This is optional.
    When you select multiple dimensions, the aggregation is hierarchical based on the top-down order of the dimensions. You can move the dimensions in the hierarchy using the move up and move down arrows. You can also add additional filtering conditions for the dimensions.
  4. Click the Generate report button.