How Does Income Statement Report Works in iDempiere

The Income Statement report in iDempiere is generated through the Financial Report window, using a predefined Report Line Set (Income Statement) and Report Column Set (e.g. Statement of Cash Flows) to organize and display account activity. It presents the organization’s Revenue and Expenses for the selected accounting period, rolling up through Gross Margin and Total Expenses to arrive at Net Income Before Taxes, providing essential information for financial analysis and decision-making.

Business Rules

• The Income Statement is generated based on the selected Accounting Schema and Calendar.

• The report uses the Report Line Set “Income Statement” to determine which Revenue and Expense account groups are included, rolling up to Gross Margin, Total Expenses, and Net Income Before Taxes.
• Unlike Balance Sheet accounts, Revenue and Expense accounts reset each fiscal year, so balances are shown as period or year-to-date activity rather than a cumulative running total.
• The Report Column Set determines which columns are displayed — typically Beginning period, Net period, End period, Period debits, and Period credits only.
• Gross Margin is calculated as Sales less Cost of Goods Sold; Gross Margin less Expenses derives Net Other Income before arriving at Net Income Before Taxes.
• The report processes only posted accounting transactions according to the selected accounting period.
• Enabling List Sources and List Transactions displays the source accounts and underlying transactions that contribute to each line balance.
• Exclude Adjustment Periods controls whether adjustment periods are included when calculating balances.
• The Create Report action supports optional restrictions by Period, Business Partner, Product, Project, Sales Region, and Campaign, and an alternative Reporting Hierarchy.
• Reports can be viewed as HTML immediately or Run as Job in the background.
• A predefined Print Format is used to display the report in a structured financial layout.

Report Parameters

Parameter Window (Financial Report Setup)

Create Report Parameters

The Income Statement Create Report dialog allows users to restrict and format the report before generation.

Income Statement Report – Create Report Parameter Window

Report Output

The Income Statement report displays the organization’s Revenue and Expenses for the selected reporting period. Each line represents an account group or individual account (e.g. Sales, Cost of Goods Sold, Gross Margin, 7-Expenses, Total Expenses, Other Income, Other Expense), rolling up to Net Income Before Taxes and Income Tax & Summary. Balances are shown across the columns defined by the Report Column Set. When List Sources and List Transactions are enabled, supporting source accounts and individual transactions are listed beneath each account to allow drill-down analysis. The generated report can be viewed, printed, or exported for financial analysis, management review, and statutory reporting.