What Is and Where to Access the Income Statement (P&L)
The Income Statement (also known as Profit and Loss Statement - P&L) is a financial report that summarizes a company's performance over a specific period.
Its purpose is to show:
- How much revenue the business generated;
- The costs incurred to generate that revenue;
- The operating expenses of the business;
- The final profit or loss for the selected period.
The Income Statement is one of the most important financial reports for evaluating business performance and profitability.
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Basic Structure of the Income Statement
The Income Statement typically follows this structure:
Gross Revenue
The total amount earned from sales and services before deductions.
(-) Revenue Deductions
Taxes, discounts, refunds, and other reductions applied to revenue.
(=) Net Revenue
The actual revenue retained after deductions.
(-) Direct Costs (COGS/COS)
Costs directly related to producing goods or delivering services.
(=) Gross Profit
The profit remaining after direct costs are deducted.
(-) Operating Expenses
Expenses required to keep the business running.
(=) Operating Income
The result generated by the company's core operations.
(+/-) Financial Result
Interest income, bank fees, financing costs, and other financial gains or losses.
(=) Net Profit
The final result of the period.
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How the Income Statement Works in ProcessFlex
In ProcessFlex, the Income Statement is generated automatically based on the financial transactions recorded in the system.
To ensure transactions are correctly reflected in the report, each Account Plan must be assigned an Income Statement Classification.
Whenever a revenue or expense transaction is linked to an Account Plan, it automatically inherits the classification assigned to that account and becomes part of the Income Statement calculations.
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Available Classifications
When configuring an Account Plan, you can assign one of the following classifications:
Gross Revenue
Used for income that represents business revenue.
Examples:
- Product sales;
- Service revenue;
- Operating income.
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Revenue Deductions
Amounts that reduce gross revenue.
Examples:
- Sales taxes;
- Discounts granted;
- Refunds and returns.
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Direct Costs (COGS/COS)
Costs directly associated with generating revenue.
Examples:
- Inventory purchases;
- Raw materials;
- Production costs;
- Direct service delivery costs.
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Operating Expense
Expenses required to maintain business operations.
Examples:
- Rent;
- Utilities;
- Internet services;
- Marketing;
- Professional fees;
- Administrative expenses.
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Not Included in the Income Statement
Used for transactions that should not impact operational results.
Examples:
- Transfers between accounts;
- Asset movements;
- Internal adjustments;
- Non-operational financial transactions.
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Where to Access the Income Statement
There are two ways to access and work with the Income Statement in ProcessFlex.
Option 1 – Through Account Plans
1. Navigate to Finance → Account Plans;
2. Assign the appropriate Income Statement classification to each Account Plan;
3. Click the View Income Statement button located at the top of the page.
This is the recommended location for configuring and reviewing classifications before analyzing financial results.
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Option 2 – Through Financial Transactions
1. Navigate to Finance → Transactions;
2. Review or register revenues and expenses;
3. Transactions linked to classified Account Plans will automatically be reflected in the Income Statement.
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How to Generate the Income Statement
1. Classify your Account Plans according to the nature of each transaction;
2. Record revenues and expenses normally in the system;
3. Open the Income Statement page;
4. Select the desired month and year;
5. Review the automatically calculated financial results and indicators.
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Printing the Income Statement
If you need to share, archive, or present the report, ProcessFlex allows you to print the Income Statement directly from the system.
Simply open the Income Statement page and click the Print button located in the upper-right corner.
Printing is useful for:
- Management meetings;
- Business partners and stakeholders;
- Accountants and financial advisors;
- Financial documentation and record keeping.
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Important
The accuracy of the Income Statement depends directly on the correct classification of your Account Plans.
For the best results, review classifications periodically to ensure revenues, costs, and expenses are being allocated correctly and that the report accurately reflects your business performance.