Profit & Loss Analysis in Odoo 18 Accounting
By Braincuber Team
Published on December 26, 2025
Companies making decisions based on revenue alone miss critical insights about profitability. A business might report $1M in sales yet lose money if costs exceed revenue, or conversely appear less successful while actually being more profitable due to efficient cost control. Without understanding the Profit & Loss statement—which breaks down revenues, cost of goods sold, operating expenses, and net profit—management flies blind, unable to identify which products are profitable, where costs are bleeding money, or whether strategic investments are paying off.
Odoo 18's Accounting module transforms P&L analysis from static spreadsheets into dynamic, real-time financial dashboards. With automated data aggregation from sales, purchases, inventory, and expenses, you get instant visibility into financial performance across custom time periods, comparative analysis against previous periods, and drill-down capabilities to investigate specific accounts—all while maintaining audit-ready accuracy.
Key Analysis Features:
- Real-time P&L generation from transactional data
- Flexible period selection (month, quarter, year, custom)
- Period comparison (vs previous year, quarter, month)
- Cash vs Accrual basis accounting
- Journal-specific filtering (sales only, cost analysis)
- Export to PDF and Excel with formatting
Understanding the P&L Statement
The Profit & Loss report (also called Income Statement) shows whether your business made or lost money during a specific period by categorizing all financial activity into revenues and expenses.
P&L Structure
Revenue (Top Line)
Total income from primary business operations (product sales, service fees)
Cost of Goods Sold (COGS)
Direct costs to produce/acquire sold items (materials, labor, shipping)
= Gross Profit
Profit before operational expenses
Operating Expenses
Indirect costs to run business (salaries, rent, marketing, utilities)
= Operating Income (EBITDA)
Earnings before interest, tax, depreciation, amortization
Other Expenses & Income
Interest, taxes, depreciation, one-time charges/gains
= Net Profit (Bottom Line)
Final profit after all revenues and expenses
Accessing P&L Report in Odoo 18
Navigation
- Navigate to
Accountingmodule - Click
Reportingin top menu - Select
Profit and Loss - Report generates automatically for current fiscal year
Automatic Data: Report pulls from all posted journal entries (invoices, bills, bank transactions, manual entries) in real-time.
Key Financial Terms in Odoo Context
Understanding how Odoo calculates and categorizes financial data is crucial for accurate P&L analysis.
Revenue
Total earnings from primary business operations
Source in Odoo: Customer invoices, POS transactions, sales orders (posted to income accounts)
Cost of Goods Sold (COGS)
Direct costs to produce/acquire sold products
Source in Odoo: Inventory valuation (perpetual), supplier bills for raw materials, stock movements
Gross Profit
Revenue minus COGS (profitability before overhead)
Calculation: Automatically computed: Revenue - COGS
Operating Expenses
Indirect costs to run business (salaries, rent, marketing)
Source in Odoo: Employee payroll, vendor bills (utilities, services), expense reports, journal entries
Depreciation
Allocation of fixed asset costs over their useful life
Source in Odoo: Asset Management module (automatic scheduled entries for machinery, equipment, vehicles)
Net Profit
Final bottom line after all revenues and expenses
Calculation: Total Income - Total Expenses (the ultimate performance indicator)
Customizing Report Period
Odoo provides flexible date filtering to analyze different time periods.
Period Selection Options
| Period Type | Description | Use Case |
|---|---|---|
| This Month | Current calendar month to date | Monthly performance tracking |
| This Quarter | Current fiscal quarter | Quarterly board meetings |
| This Year | Current fiscal year (default) | Annual financial review |
| Custom | Specific date range | Campaign analysis, special events |
Setting Custom Period
- Click date filter dropdown at top of P&L report
- Select predefined period OR choose "Custom"
- For custom: Enter start date and end date
- Click
Apply - Report updates instantly with filtered data
Period Comparison Analysis
The most powerful P&L feature is comparing performance across different time periods to identify trends.
Enabling Comparison
- Open Comparison: Click
Comparisonbutton in report toolbar - Select Comparison Periods: Choose what to compare:
- Previous Period (e.g., Q2 vs Q1)
- Previous Year (e.g., 2024 Q1 vs 2023 Q1)
- Multiple custom periods
- View Results: Report shows side-by-side columns with variance
Example Comparison View
| Account | Q1 2024 | Q1 2023 | Variance |
|---|---|---|---|
| Revenue | $500,000 | $450,000 | +$50,000 (11%) |
| COGS | $200,000 | $180,000 | +$20,000 (11%) |
| Gross Profit | $300,000 | $270,000 | +$30,000 (11%) |
| Operating Expenses | $150,000 | $140,000 | +$10,000 (7%) |
| Net Profit | $150,000 | $130,000 | +$20,000 (15%) |
Analysis: Revenue grew 11%, COGS increased proportionally, but operating expenses grew slower (7%), resulting in 15% net profit improvement.
Advanced Filtering Options
Accounting Basis
Accrual Basis (Default)
Revenue/expenses recognized when transaction occurs
- Invoice date matters (not payment date)
- Matches most businesses' accounting standards
- Required for GAAP/IFRS compliance
Cash Basis
Revenue/expenses recognized when cash received/paid
- Payment date matters (not invoice date)
- Shows actual cash flow
- Useful for small businesses/cash flow analysis
Journal Filtering
Filter P&L to show data from specific journals only:
- Sales Journal: Revenue analysis from customer invoices only
- Purchase Journal: Cost analysis from vendor bills only
- Bank Journals: Actual cash-based P&L
- Multiple Journals: Combined view of selected journals
Unposted Entries
Include Unposted Entries: Enable to see draft invoices/bills in P&L. Useful for forecasting but not for official reporting.
Exporting & Sharing Reports
Export Options
PDF Export
Professional format for sharing
Board presentations, stakeholder reports
Excel Export
Editable for further analysis
Financial modeling, custom charts
Print Preview
Physical copy generation
Audit documentation, filing
Note: All filters, comparisons, and date ranges are preserved in exported files.
Practical Use Cases
Monthly Performance Review
Compare current month vs. previous month to track KPIs. Identify if revenue is growing, costs are controlled, and profit margins are improving. Set alerts for significant variances.
Year-over-Year Growth Analysis
Compare Q1 2024 vs Q1 2023 to measure annual growth. Identify seasonal patterns, evaluate if strategic initiatives (new products, marketing campaigns) are generating results.
Budget vs Actual
Export P&L to Excel, compare against budget spreadsheet. Identify departments or expense categories exceeding budget, reallocate resources, or adjust future budgets.
Campaign ROI Analysis
Set custom period matching marketing campaign duration. Compare revenue and expenses during campaign vs. equivalent pre-campaign period. Calculate if increased marketing spend generated proportional revenue growth.
Frequently Asked Questions
Conclusion
The Profit & Loss report in Odoo 18 transforms financial analysis from tedious spreadsheet management into dynamic, real-time insight generation. With automatic data aggregation from all accounting modules, flexible period comparison, advanced filtering, and professional export options, finance teams gain the visibility needed to make informed strategic decisions quickly.
Whether you're tracking monthly performance, preparing for board meetings, analyzing campaign ROI, or planning next year's budget, Odoo's P&L reporting provides the clarity, accuracy, and flexibility required for modern financial management. The ability to drill down from high-level summaries to individual transactions ensures both strategic oversight and operational detail are always at your fingertips.
Need Help Optimizing Financial Reporting?
Our accounting experts can help you configure custom P&L structures, set up automated reporting workflows, train finance teams on advanced analysis techniques, integrate budgeting tools, and implement financial dashboards for real-time performance monitoring.