Automated P&L (DRE)

The P&L uses the entry's accrual date (or the bill's issue date). The cash flow uses the date of the actual settlement. They are two tables and two different questions, never added together. If the ERP has no reliable accrual date, choose which date replaces it (issue or due date), write the choice in the context document and keep the criterion every month.

Each ERP category points to a management line (gross revenue, deductions, costs, variable expenses, operating expenses, financial result) in a mapping table kept by finance, usually a connected spreadsheet. The P&L structure configured inside the ERP is often outdated or was never used. When there is an official P&L made by controllership or an outside consultancy, the automation reproduces that number and does not invent new criteria.

A new or unmapped category lands on an Unclassified line, visible in the P&L, and goes to a to-do list with amount and description. The transformation does not fail and does not drop the entry. The goal is a zero line at close.

Revenue positive, cost and expense negative, applied from the entry's nature (in Omie, R adds and P subtracts). If the column already comes signed, do not flip it again. The month's result is the sum of all lines for that accrual month.

An entry can be split across several categories and cost centers. Create one line per allocation with amount = entry amount x percentage / 100; a null percentage counts as 100%. The allocation lines must add back to the entry amount. Opening the category list without the percentage repeats the full amount on every line.

Cancelled is out. A renegotiated bill that the ERP zeroes and replaces with new installments is out, and the new installments are in. For expenses, actual is the paid amount, not the bill's total. Bill movements such as replacement, cancellation and rescheduling are not costs: only payment and advance count. Summing every operation type inflated paid expenses by 30% to 50% in real cases.

Transfers between own accounts, investments and redemptions, shareholder contributions, loans taken or repaid, advances and the corporate card bill payment change cash, but are not revenue or expense. They stay out of the P&L and appear only in the cash flow. Movements between bank and investment accounts must be computed per entry so both sides cancel out.

Define which system is the revenue source: the ERP, the billing system or the invoice. Payment gateways and platforms are collection channels and only serve as a check. Adding ERP revenue to gateway payments counts the same sale twice.

In retail and manufacturing, COGS is the cost of the items sold in the month (quantity sold x item cost), not the month's purchases, which go to inventory. In services, the cost of services follows the service's accrual month. Payment fees, commissions and freight are variable expenses and sit between gross margin and contribution margin.

Each month has a closed flag, set when finance finishes the close. Actuals, comparisons and board reports use closed months only; the open month is partial and labeled provisional. Once closed, the month is stored in a version that is not recalculated, and adjustments found later go into the month in which they were found.