What is meant by "analytic accounting"?
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Analytic Accounting is using for tracking costs and revenue in OpenERP. In OpenERP we can have budgeting and make future plans for financial sources and track down of cost based of particular phase. Analytic Accounting is also track financial sources of Project Management.
For example :
If you want to make budget of Project you have to use analytic accounts. Suppose We have budget of 8,00,000 for a project we can devide it like this :
Analysis: 2,00,000, Design : 2,00,000, Development : 2,00,000 Testing : 2,00,000
Like wise we can track a cost and manage budget of particular phase. Same as we can track a work hours of employee in timesheet using Analytic account.
Your accountant has a General Ledger with various accounts (Creditors, Taxes Paid, Revenue, Expenses...) however that's not very useful for project managers, who would rather group costs (as an example) on a per project basis. What Analytic Accounting (I've also seen it described as Cost Accounting or Management Accounting) does is allow people out-side of the accounting department to group costs or revenues into bundles that are more useful for them. These Analytic accounts are still related back to an entry in the General Ledger but they are more granular and flexible in their name, description and use, making them more useful to managers.
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