EBIT (SAP Business One)

EBIT stands for "Earnings before Interest and Taxes" and refers to earnings before interest and taxes. This economic Key figure reflects the operating result of a company - irrespective of the financing structure and national tax rates.

E-invoicing in Germany: How to implement the obligation with SAP Business One

Significance in practice:

EBIT is primarily used to make companies internationally comparable. As interest expenses and tax charges are excluded, EBIT shows the "gross profit" from ordinary business activities. It is therefore particularly suitable for assessing operating performance and management efficiency.

EBIT in SAP Business One:

In SAP Business One EBIT is not a standardised key figure - but it can be calculated precisely and transparently using the available resources. The basis for this is the Profit and loss account (P&L) and a targeted analysis of individual financial accounts.

Procedure for calculating EBIT in SAP Business One:

Set the starting point: The basis is earnings before taxes (EBT).
Identify relevant accounts: Interest expenses and interest income must be filtered out of the chart of accounts.
Perform calculation:
EBIT = EBT + interest expense - interest income
(if required, you can also work with the annual surplus and retroactive accounting)
Data source: P&L report and line item reports.
Automation:
- Customised SQL-Queries for regular calculation
- Visualisation via KPI widgets or Analytics Designer

Example of an SQL query:
(Scheme depends on the individual chart of accounts, therefore please adapt).

SELECT
  SUM(Credit - Debit) AS EBIT
FROM
  OJDT T0
JOIN JDT1 T1 ON T0.TransId = T1.TransId
WHERE
  T1.Account IN ('EBT_Konto', 'Zinsaufwand_Konto')
  AND T0.RefDate BETWEEN [%0] AND [%1]

SAP Business One therefore does not offer a preset key figure for EBIT, but provides all the tools required to calculate this meaningful key figure individually and integrate it permanently into decision-making processes. User-defined reports and KPI visualisation allow EBIT to be presented clearly and automatically - in line with modern financial analysis.