Analytical accounting
Introduction into analytical accounting
“Analytical accounting” corresponds to cost accounting in AOS.
Analytical accounting is a genuine management and steering tool for companies. With the analytical accounting, the data is processed to explain financial results and provide the information needed for decision-making. It is based on, but is not limited to, general financial accounting.
Analytical accounting is not compulsory, although it is recommended.
Analytical accounting has a number of objectives:
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To identify the costs of a company's various functions ;
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Calculate profit or loss by product ;
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Inventory management ;
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Explain the results ;
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Provide management with detailed financial information for decision-making.
Analytical entry
An analytical entry in AOS is an operation, consisting of recording a commercial transaction (Purchase/Sales Order, Purchase/Sales Invoice, Contracts, etc.), or a financial transaction (Purchase/Sales Invoice) by means of a distribution on analytical axes and on each of these axes by a distribution into analytical accounts.
An entry corresponds to a “move” in AOS.
Analytical entries are :
- Recorded in one or more journals (for categorisation if necessary);
-Of a forecast type (Order, Contract, Invoice) or an actual type (Accounting);
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Represent an amount via a distribution percentage applicable to the related transaction (order line, invoice line, accounting entry line);
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Dated (the date is identical to the date of the related transaction).
Analytical journals
Access: Accounting → Configuration → Analytics → Analytic journals
Journals can be configured via the Accounting menu.
The analytical journal is an extra-accounting document (it’s not mandatory) which records all the analytical entries that have been generated.
In Axelor, even if it is possible to generate several analytical journals, it is necessary at the very least to create an Analytical journal that will record all the entries that have been created.
Analytical axes
Access: Accounting → Configuration → Analytics → Analytic axes
Analytical axes are values. These values are used to categorise analytical entries so that they can be tracked and analysed on different models, such as Sales Orders, Purchases, Invoices and Accounting Entries. An example of an analytical axis is a project or department from which originated the accounting entry.
Analytical axes are attached to a company or can be shared between companies (in the case of a multi-company). To be shared, the Company field must not be filled in on the analytical axis.
An axis is characterised by a Code and a Name. Bear in mind that the Code must be unique for each company. The distribution on each analytical axis must always be equal to 100% to ensure that the data is perfectly consistent.
The analytical axis also has 2 additional options:
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Manage parent accounts: this option allows you to authorise the management of tree structures (on several levels) on analytical accounts.
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Number of analytical groupings: analytical groupings are used to add depth of analysis with another dimension to group data across axes or potentially on the same axis. For each analytical grouping, you can define grouping values, which can be selected directly on the analytical account.
Analytical accounts
Access: Accounting → Configuration → Analytics → Analytic accounts
The analytical accounts or analytical items or analytical sections are the detail elements which are attached to an analytical axis and which enable financial transactions to be allocated via one or more distribution keys.
Analytical accounts are attached to a company or can be shared between companies in the case of a multi-company system. If the company field is empty, the account is shared.
If, for example, the Analytical Axis is a Department axis, then the analytical accounts are the departments and they will allocate the analytical entries to these items.
The analytical accounts have levels, the lowest and main level being level 1.
If the analytical axis allows parent accounts, the Parent field will be displayed, enabling you to manage a tree structure.
Here is an example for an organisation by department: the Trade department, which would be a Level 1, could have two sub-levels. These two sub-levels are : 1 B2B analytical account and 1 B2C analytical account. The analytical account related to a level 1 account must necessarily be level 2.
For example: Axis 2 (on the right side) authorises the use of parent codes, unlike Axis 1. If the grouping criteria is activated, it is possible to define the corresponding grouping values.
Basic analytical configurations
Accounting App
Remember to activate analytical distribution in the Accounting app.
Access: Application config → Apps management → Accounting, configure → activate the “Manage analytic accounting” option.
Activating this option will bring up the Analytical tab in the company's accounting configurations. In addition, the Analytical menu will appear in the Accounting app (access: Accounting → Configuration → Analytic).
Accounting configurations by company
In order to configure analytical distribution at company level, it is mandatory to activate the “Manage analytic accounting” option in the Accounting app.
You can also activate analytical distribution (and other related functions) at company level.
Access : Application config → Apps management → Accounting, configure → click on the company file.
Access: Application config → Users/Company → Company → open the file → click on Account configuration
Once on the accounting configurations by company, open the Analytic tab and configure the following fields:
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Manage analytic accounting: tick the box to activate analytical distribution.
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Number of analytical axes: the “Number of analytical axes” field is used to define the number of axes that can be configured and that will have an impact on entries.
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Default analytic journal: define the default analytical journal in this field.
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Order of analytical axes : the axes and their order are defined in the “Order of analytical axes” table.
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Analytic distribution type: enter the type of analytic distribution.
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Free: the user must select the analytical distribution model at the time of the transactions.
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Per Partner: the analytical distribution model will be automatically retrieved from the record of the third party linked to the transaction.
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Per family/product/account: the analytical distribution model will be automatically retrieved from either the accounting configuration of the product, or the product accounting family, or the accounting account linked to the transaction.
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Per trading name: the analytical distribution model will be automatically retrieved from the trade name. This option is only displayed if “Enable trading names management” is activated in the App Base (see Configuration tab).
- Order of Analytical Axes: the Order of Analytical Axes table is used to select the Axes, then if necessary to order them using the grid icon on the right (you can change the order manually using Drag & Drop).
If the original table is empty, click on the + icon to generate a new line and select the analytical Axis.
The rest of the settings can be made directly via the menu entries Accounting → Configurations → Analytical or on the various configuration sources.
The analytical distribution model
Access: Accounting → Configuration → Analytical → Analytical distribution model
The Analytical distribution model is used to define pre-set distribution rules for a given company, enabling the financial transaction (e.g. an expense or revenue) to be split between the different Axes and, above all, between the different analytical accounts.
As a reminder, the amount of the transaction must be allocated 100% to each axis, and then for the same axis, according to an allocation percentage to be defined for each of the accounts.
If only one analytical account is affected, then the distribution will be 100%. If, for example, 2 accounts are affected, then the distribution is based on the percentage (see example above: 60% on Account 4 and 40% on Account 3).
The model is a key point, because it saves time and avoids the user having to re-enter data.
Analytical parameters on the Partner
In order to select an analytic distribution model on the Partner file, remember to select “Analytic distribution type - Per partner”.
Access: Application config → Referential → Partners → Accounting situation tab, Analytical section, “Analytical distribution model” field
When modifying a Partner file, if the type of analytical distribution is the one “Per partner”, a new heading will be displayed on the partner Accounting situation tab, allowing you to select the analytical distribution model associated with this third party.
For example, for a categorisation of income and expenditure on an Analytical Geographical distribution axis, which would be structured with analytical accounts being structured in zones and a zone would be allocated to each model.
Analytical parameters for product accounting families
Access: Application config → Referential → Configuration → Product accounting family
Accounting families are used to define the accounting properties for all products that will be accounted for in the same way. When the type of analytical distribution, that has been selected on the accounting configuration per company, is by Product Family/Account, a new heading will be displayed on the Product Accounting Family file, allowing you to select the analytical distribution model associated with this family.
Analytical parameters for a product file
Access: Application config → Referential → Product → Products
Accounting tab: the accounting information is used to define specific accounting properties for a given product master record, which will be accounted for in a more specific way than its related accounting family. When the selected type of analytical distribution is by Family/Product/Account, a new heading will be displayed on the Product file in the Accounting tab, allowing you to select the analytical distribution model associated with this product.
Analytical parameters for accounting account records
Access: Accounting → Configuration → Financial → Financial Accounts
Analytic distribution authorized: on the financial account file, tick the “Authorise analytical distribution” option. Tick this option when the financial account is to be monitored in Analytical (this option is particularly suitable for management accounts)
When this option is active, it will display the three new fields:
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Analytic distribution required on invoice lines: the entry of analytic distribution on invoice lines becomes compulsory ;
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Analytic distribution required on move lines: the entry of analytic distribution on accounting entries becomes compulsory ;
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Analytical distribution template: find a selection of the default analytical model associated with the financial account.
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Create personalized analytic template: this button is used to create a (customised) analytical distribution model and it will automatically add the axes: there will be a selection of analytical accounts from these axes and/or modification of the analytic distribution.
Entering an invoice with the analytical distribution
General concepts for creating an invoice with analytical distribution
To enter an invoice with analytical distribution, first activate analytical distribution for the company and define the analytical distribution axes in the company's accounting configuration.
First, activate the feature :
Access: Application config → Apps management → Accounting, configure → activate the “Manage analytic accounting” option.
Then, configure the company's accounting settings.
Access : Application config → Apps management → Accounting, configure → click on the company file.
Or :
Access: Application config → Users/Company → Company → open the file → click on Account configuration
Access : Invoicing → Customer/Supplier Invoices → open a file and click on the Analytical Accounting tab
Once analytical distribution has been managed, the Analytical Accounting tab appears in the tabs at the bottom of the page on the invoice file. This tab is used to summarise all the analytical configurations present on the lines.
When an invoice line is created, the Analytical Accounting tab is only displayed if the selected financial account (see Accounting tab) is managed on an analytical basis.
Entering an invoice with analytical distribution: Invoice lines
Access: Invoicing → Supplier invoices
Analytic distribution required on invoice lines: if the “Analytic distribution required on invoice lines” option is ticked on the financial account that has been selected on the line, then entering the analytical distribution will be mandatory. Either enter an analytical distribution model, or enter an analytical distribution directly in the table of analytical distribution lines using the “+ New” button at the top right of the table.
Analytical distribution type: depending on the type of distribution selected in the configuration (by third party, by family/product/account, by commercial brand), the distribution model (if already pre-configured) will be loaded automatically when the product and/or the financial account associated with the product is selected. If “Free” type has been selected, then, you will have to enter the information manually.
Analytical axes: if the analytical distribution in the table for an analytical axis is 100% for a single analytical account, then the analytical account will be pre-selected directly in the field that corresponds to the axis name on the invoice line (read-only).
Analytical account on invoice line: if no model has been pre-selected, the user can directly select an analytical account, corresponding to each axis on the invoice line, if 100% of the expenditure is allocated to an account corresponding to each analytical axis. Once the selection has been made, the table of cost allocation lines will be filled in automatically with the Axis and the corresponding selected cost account.
The allocation can always be modified if necessary.
Manual entry in the absence of a template: if no template is pre-selected, is not suitable or does not exist, and/or the distribution is specific with multiple analytical accounts, then the entry can be made manually in the table.
Click on “+ New”, then in the pop-up select the Axis, then the analytical account and finally indicate the percentage to be allocated to the Axis in question. Then click on OK at the bottom right and so on.
As a reminder, the sum of the percentages per Axis must be equal to 100%. A control is activated to avoid errors.
Entering an invoice with analytical analysis: case study
Access: Invoicing → Supplier invoices
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Content tab - Invoice lines: open the Content tab and add a new invoice line by clicking +New.
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Invoice line: the “Invoice line” pop-up window will open. Select a product.
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Analytical distribution template: if the financial account has not been configured with an analytical distribution template, click on the Analytical accounting tab. In this tab, you will find the “Analytical distribution template” field. Select an analytical distribution template here. The analytical distribution axes and lines will be filled in automatically once the template has been selected.
If there are no available templates for the selection, it is because it has not been configured.
Remember to configure the models in the ‘Cost allocation model’ menu.
Access Accounting → Configuration → Analytic → Analytical distribution template
- Fill in the rest of the information on the invoice and go on to the invoicing stage.
Moves with analytical distribution
Access: Accounting → Moves → Moves
Access: Application config → Batches → Accounting batches
This works in a similar way to entering an invoice with analytical distribution.
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To enter a move line (entry) with analytical distribution, first, activate an analytical distribution for the company and define one of the analytical distribution axes in the company's accounting configuration.
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Once analytical distribution has been managed, columns with the names of the “Analytical distribution axes” will appear in the move lines in order to select, for each axis, the analytical account to which will be allocated the 100% of the financial transaction.
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When a move line is created in the move line table (or for a single item), the fields are only displayed if the selected financial account (see Accounting tab) is managed in analytical distribution. Open a move line (in the move lines), you will find the “Analytical distribution template”, “Axis 1” and “Axis 2” columns. On a batch of move lines, you will find the “Analytical distribution template”, “Axis 1”, “Axis 2” and “Analytic distribution line” columns.
Move lines with analytical distribution
Access: Accounting → Moves → Moves
Access: Application config → Batches → Accounting batches
Depending on the type of analytical distribution that has been selected in the configuration (by third party, by family/product/account, by commercial brand), the analytical distribution template, if already preconfigured, will be loaded automatically once the financial account is selected. If the “Free” option has been selected, you will have to manually add information in the field.
As with invoices, if the analytical distribution in the table for an analytical axis is 100% for a single analytical account, the analytical account will be pre-selected directly in the field corresponding to the axis name on the move line (but read-only). The lines are generated automatically.
As with the invoice, as soon as either the analytical distribution template or the analytical account is entered in the corresponding column, the move lines will be automatically generated. To see the details of the move lines, switch to the form view.
To access the details of the generated move lines, first click on “Confirm” and then click on the Pencil button (Edit) on the move line to open the form view. The appearance and functioning of this file is identical to that of the invoice. Unlike the invoice, a move does not contain a summary of the analytical move lines.
Entering an analytical entry: a practical example
Access: Accounting → Moves → Moves
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Move lines: open the Move lines tab.
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Account: in the Move lines tab, enter an account.
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Debit: enter the debit amount.
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Analytical distribution template: select an analytical distribution template .
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Confirm: click on the “Confirm” button.
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If you click on the move line, the “Move Line” pop-up window will open. Click on the Analytical distribution tab to view the analytical distribution template and the axes.
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Finish processing the move line.
Analytical reports
Analytical balance
Access : Accounting → Accounting Export/Reports → Accounting reports
To request and access analytical data for analysis, an Analytical Balance report is available in Accounting Reports. Alternatively, use the Axelor-BI.
The report contains the essential elements for filtering:
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The usual filters: Fiscal year, Period, Date from, Date to, Currency, Journal.
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Specific analytical filters: Journal, Axis, Analytical accounts (multiple), Account types.