Proforma Gl Entries

Proforma GL Entries (Job Number)

This document describes the proforma (expected) General Ledger entries that appear under a job when Job Number is set. All such entries are linked via the job_number accounting dimension on GL Entry. The Profitability (from GL) section on job/shipment forms reads these entries to show Revenue, Cost, WIP, and Accrual.

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1. Revenue (Income)

Source: Sales Invoice (created from or linked to the job).

When a Sales Invoice has Job Number set, ERPNext posts GL entries with that dimension. Income account entries determine Revenue in the Profitability section.

Account (Root Type)	Debit	Credit	Effect on Revenue
Income	0	amount	+ (credit − debit)
Receivable / other	amount	0	—

Proforma (simplified):

Account	Root Type	Debit	Credit
Sales - Jobs	Income	0	X
Debtors	Asset	X	0

Revenue = sum of (credit − debit) for all GL rows where the account’s Root Type = Income and job_number matches the job.

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2. Cost (Expense)

Source: Purchase Invoice (created from or linked to the job).

When a Purchase Invoice has Job Number set, ERPNext posts GL entries with that dimension. Expense account entries determine Cost in the Profitability section.

Account (Root Type)	Debit	Credit	Effect on Cost
Expense	amount	0	+ (debit − credit)
Payable / other	0	amount	—

Proforma (simplified):

Account	Root Type	Debit	Credit
Cost of Goods / Expense	Expense	X	0
Creditors	Liability	0	X

Cost = sum of (debit − credit) for all GL rows where the account’s Root Type = Expense and job_number matches the job, excluding the policy Cost Accrual Account (that expense is treated as part of the accrual story, not “realized” job cost in the summary).

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3. WIP (Work in Progress)

Source: Journal Entries created by the recognition engine (WIP Recognition, WIP Adjustment, WIP Closure). Account names come from Revenue Recognition Policy Settings / Recognition Parameters (e.g. WIP Account, Revenue Liability Account).

3.1 WIP Recognition (e.g. on job submit)

Account	Root Type	Debit	Credit	Remark
Revenue Liability Account	Asset*	X	0	Dr. WIP liability (policy account)
WIP Account	Income	0	X	Cr. WIP

*Policy validation uses Asset for Revenue Liability Account (e.g. contract asset / unbilled); your COA label may say “WIP Liability”.

Profitability: WIP amount = sum of (credit − debit) for the WIP Account only (from the job’s recognition policy), for the job’s job_number.

3.2 WIP Adjustment / Closure

Account	Root Type	Debit	Credit	Remark
WIP Account	Income	X	0	Dr. WIP (reversal)
Revenue Liability Account	Asset*	0	X	Cr. liability

This unwinds the WIP (Income) credit from recognition for the adjusted/closed amount.

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4. Accrual (Accrued Cost Liability)

Source: Journal Entries created by the recognition engine (Accrual Recognition, Accrual Adjustment, Accrual Closure). Account names come from Revenue Recognition Policy Settings / Recognition Parameters (e.g. Cost Accrual Account, Accrued Cost Liability Account).

4.1 Accrual Recognition (e.g. on job submit)

Account	Root Type	Debit	Credit	Remark
Cost Accrual Account	Expense	X	0	Dr. Cost Accrual
Accrued Cost Liability Account	Liability	0	X	Cr. Liability

Accrual recognition may post one Dr/Cr pair per charge line, with the Item accounting dimension set on both rows when the site has an Item dimension on Journal Entry Account (same value as on charge item_code / charge_item when present).

Profitability: The summary tile Accrual amount = sum of (credit − debit) for the Accrued Cost Liability Account only (from the job’s recognition policy), for the job’s job_number.

In the Related GL Entries table, rows on the Cost Accrual Account appear under the Accrual column (debit − credit), not under Cost, so accrual expense is visually grouped with accrual activity.

4.2 Accrual Adjustment / Closure

Account	Root Type	Debit	Credit	Remark
Accrued Cost Liability Account	Liability	X	0	Dr. Liability
Cost Accrual Account	Expense	0	X	Cr. Cost Accrual

This reduces the accrued cost liability balance for the job.

4.3 Accrual reversal when Purchase Invoice is posted

When a Purchase Invoice is submitted with the same Job Number as the job, and the job still has open accrual (accrual_amount), logistics posts an Accrual reversal Journal Entry: Dr Accrued Cost Liability, Cr Cost Accrual, up to each PI line amount (and capped by open accrual). The job’s accrual_amount and recognized_costs are updated. Where GL supports it, reversal lines use the same Item dimension as the PI line so accrual can be matched per item.

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5. Summary: How Profitability Uses These

Column	GL basis
Revenue	Sum of (credit − debit) for Income and job_number = job, excluding the policy WIP Account and accounts whose Job Profit Account Type is Disbursements, WIP, or Accrual.
Cost	Sum of (debit − credit) for Expense and job_number = job, excluding the policy Cost Accrual Account and the same Job Profit Account Type tags as above.
WIP	Summary tile: (credit − debit) for the policy WIP Account only. The GL table also classifies accounts tagged WIP (Job Profit Account Type).
Accrual	Summary tile: (credit − debit) on the policy Accrued Cost Liability Account only. The GL table includes Cost Accrual (policy) and accounts tagged Accrual (Job Profit Account Type).
Disbursements	Sum of signed GL on accounts with Job Profit Account Type = Disbursements (by root type).

6. Item Code on GL rows (Accounting Dimension)

If the site defines an Accounting Dimension for Item, ERPNext adds a Link field to Item on GL Entry and on Sales Invoice Item / Purchase Invoice Item. CargoNext syncs item_code into that dimension field on validate/submit (and on update after submit) so posted Sales Invoice and Purchase Invoice GL lines carry the item for job profitability.

The profitability table shows this as Item Code (same value as on the invoice line). The underlying GL column name follows your dimension (e.g. item or “Dimension Item”).

7. Disbursements (Job Profit Account Type)

On Account, the custom field Job Profit Account Type (job_profit_account_type) can be set to Disbursements (and WIP, Accrual, Profit). Rows on accounts tagged Disbursements appear in the Disbursements column in profitability (signed by root type like Income/Expense). They are excluded from the headline Revenue and Cost totals, which use Profit-style Income/Expense only (plus untagged Income/Expense). The KPI card Disbursements sums those GL lines.

8. Summary vs Details (tabs) and classified rows only

The profitability section uses tabs (Summary | Details): Summary totals per Item Code (up to 5000 classified GL rows); Details lists each classified GL entry (up to 100 rows). Switching tabs uses native label/radio behaviour (no desk JS required). GL lines that do not map to Revenue, Cost, WIP, Accrual, or Disbursements (including untagged Asset/Liability lines that are not policy accrual/WIP accounts) are hidden.

All figures are from posted GL entries (docstatus = 1) and optional date filters. See Job Management Module and the Profitability (from GL) section on job/shipment forms.

Complete field reference

GL rows use standard ERPNext Journal Entry / GL Entry structures plus logistics dimensions. Operational sources (with full field references on their wiki pages):

• General Job, Air Shipment, Sea Shipment, Transport Job, Warehouse Job, Declaration