1. Basic concepts

Note that in Microsoft Dynamics AX, the amount that is placed in the Credit part is shown as negative amount, the amount in the Debit part is shown as positive amount for all accounts (Assets and Liabilities).

To view the Income statement, open the Financial statement form again, select IS (Income statement) in the Financial statement field, and click OK. The report looks as follows:

Figure 1.11 Income statement

In this example the OPERATING INCOME and SALES REVENUE are the header accounts. The “401110” and “402000” are the accounts. The OTHER INCOME is the header account. The Sales revenue is the Total account, etc.

We can see that the Sales revenue is 18 in the Credit part and Cost of goods sold is 9 in the Debit part.

The company’s profit is the sum of all P&L account totals. In this case, the Sales revenue total is Credit