How to Create Profit & Loss Head

Click on Profit and Loss. 

When the user clicks on a Profit and Loss sub-head, the system opens a new window displaying all default revenue and expense account codes linked to that category. 

This window provides a detailed breakdown of the selected sub-head, allowing users to: 

• View all associated revenue and expense accounts under that specific head  

• Understand how each account contributes to the overall Profit & Loss figure  

• Analyze account-wise balances and activity  

• Ensure proper mapping of accounts within the Profit & Loss structure  

This feature helps users quickly drill down into financial data for better analysis and accurate reporting. 

Procedure 

There is an Add New Head button given. You can add new heads in the profit and loss statement by clicking on it.        

Click on “Add New Head” button. 

Click on the add new button. 

A new pop-up window will open. This window allows you to create an accounting head code in the system. 

• Add Title – There is a title block given here to add a new account head name. e.g., sale revenue. 

• Add to: There is an “add to” box given. Click on it, and it will show you two options, i.e., revenue or expense.  

Revenue → Select the option if you are adding any revenue/income-related head, e.g., sales revenue, service income, or other revenue. 

Expense → Select the option if you are adding any expense-related head, e.g., salary expense, rent expense, utilities, etc. 

• Below there is a table given to add a subsection under the main head. It consists of two options. Heads and Description. 

• To add any subsection, write its accounting head name in the first block and then add a brief description or label to describe the purpose of this head in the second block.   

• The system provides two options: remove (-) and add (+). These options allow the user to delete an existing row or add a new row, making it easier to include multiple accounting heads as sub-heads under the same category. 

• After entering all information, click on the save button, and information will be saved in the system.     

Once you click on the save button, new information will be displayed in the table along with its subsections. (shown in the below picture).