Accounting & Financial Management

PORTWARE Accounting module - the main menu and quick access panel

Overview

What You Will Learn in This Section

  • The role of the Accounting module in business processes
  • The basic logic of double-entry bookkeeping
  • How ERP accounting compares with traditional methods
  • The Turkish localisation of the PORTWARE Accounting module
Accounting Module

PORTWARE Accounting module - the main menu and quick access panel

Customer invoices

Customer invoices — due date, untaxed amount, total and payment status

Accounting is the heart of every business. When you sell, income is recorded; when you buy, an expense is recorded; when employees are paid, liabilities fall. Together, these financial movements tell a story that reflects the true state of your company.

The PORTWARE Accounting module lets you tell that story accurately, completely and in line with the law. Built on the world's most widely used open-source business-management core, it meets the financial management needs of companies of every size, from SMEs to large enterprises.

The Accounting Cycle

Understanding the basic accounting cycle that repeats every month is key to understanding the system's logic:

Invoice Entry
Collection/Payment
Bank Reconciliation
Period Closing
Financial Reports

PORTWARE Accounting Features

Invoicing

Customer and vendor invoices, credit notes, e-Invoice integration

Payment Management

Cash, transfer, cheque and online payment methods with automatic reconciliation

Bank Integration

Bank account synchronisation, automatic matching, reconciliation models

Financial Reports

Balance sheet, income statement, cash flow, aged balance reports

Multi-Currency

Foreign currency transactions, automatic rate updates, exchange difference calculation

Turkish Compliance

e-Invoice, e-Archive, e-Ledger, the uniform (2KB) chart of accounts, Revenue Administration (GİB) integration

Integration Across Modules: The Accounting module is fully integrated with the Sales, Inventory, HR (Payroll), Project and Purchase modules. Accounting entries are created automatically when a sales order is confirmed, a delivery is made or payroll is calculated.

How to Do It in PORTWARE

Opening the Accounting app:

  1. Click the Apps icon in the main menu
  2. Choose the Accounting app
  3. The Accounting Dashboard opens - pending invoices and operations are shown

Initial configuration:

  1. Go to Accounting Configuration Settings
  2. Set the Fiscal Year and Default Currency
  3. Choose "2KB - Turkish Uniform" as the Chart of Accounts
  4. Check the VAT rates in the Tax Groups section
  5. Save

Understanding the dashboard:

  1. The Customer Invoices tile shows pending sales invoices
  2. The Vendor Bills tile shows purchase invoices to record
  3. The Bank & Cash tile shows transactions waiting for reconciliation
  4. Click the tiles to reach the related lists quickly

Why ERP Accounting?

We often hear: "I keep it in Excel and it works fine." But does it really? Let us look at the differences between traditional methods and ERP accounting:

Excel/Manual Accounting

  • Every invoice is entered by hand
  • Stock and accounting are tracked separately
  • Bank reconciliation is done by hand
  • Reports take hours
  • High risk of error
  • Historical data is hard to query

PORTWARE ERP Accounting

  • Invoices are created automatically from sales
  • Stock move = accounting entry
  • The bank is synchronised and matched
  • Reports are ready instantly
  • Double-entry control
  • The whole history can be queried

Scenario: Comparing the Month-End Close

Situation: January has ended. You need to prepare the financial statements and extract the data for the VAT return. Your company has 150 customer invoices and 80 vendor bills.
❌ Excel/Manual Method:
  1. Enter all the invoices in Excel by hand (2-3 hours)
  2. Download the bank statement and compare by hand (1-2 hours)
  3. Investigate the unmatched items (1 hour)
  4. Calculate the VAT totals (30 min)
  5. Check the balance sheet and income statement formulas (1 hour)
  6. Fix the errors and recalculate (? hours)

Total: 6-8+ hours (if nothing goes wrong)

✅ PORTWARE ERP Method:
  1. Accounting → Reporting → Balance Sheet (ready, live)
  2. Accounting → Reporting → Profit and Loss (ready, live)
  3. Accounting → Reporting → Tax Report (VAT calculated automatically)
  4. Close the period (optional lock)

Total: 15-30 minutes

Important: The real value of ERP accounting is not just the time saved but a guarantee of accuracy. With double-entry bookkeeping every debit must have a matching credit - the system does not allow an unbalanced entry.

Key Concepts

To use the Accounting module well you need to understand a few basic concepts. They are not specific to PORTWARE; they are universal accounting principles.

Double-Entry Bookkeeping

Double-entry bookkeeping, the most important invention in the history of accounting, was developed by Italian merchants in the 15th century. Its logic is simple:

The Basic Principle: Every transaction affects at least two accounts. When one account receives a Debit , another account receives a Credit . The transaction total must always be zero (Debits = Credits).

Example: A Product Sale of 10,000 TL (VAT included)

Account Debit (TL) Credit (TL) Description
120 - Trade Receivables (Customers) 11.800 - What the customer owes us increased
600 - Domestic Sales - 10.000 Sales revenue was earned
391 - VAT Calculated - 1.800 An 18% VAT liability arose
TOTAL 11.800 11.800 The equation balances ✓

Chart of Accounts Structure

Turkey uses the Uniform Chart of Accounts (2KB). Accounts are categorised with 3-digit codes:

Group Code Range Account Type Example Accounts
1 100-199 Current Assets 100-Cash, 102-Banks, 120-Trade Receivables, 153-Inventory
2 200-299 Non-Current Assets 253-Fixtures, 254-Vehicles, 257-Accumulated Depreciation
3 300-399 Short-Term Liabilities 320-Trade Payables, 360-Taxes Payable, 391-VAT Calculated
4 400-499 Long-Term Liabilities 400-Bank Loans
5 500-599 Equity 500-Capital, 570-Retained Earnings, 590-Net Profit for the Period
6 600-699 Income 600-Domestic Sales, 602-Other Income
7 700-799 Expenses 760-Marketing Expenses, 770-General Administrative Expenses

Journals

PORTWARE uses a separate journal for each type of transaction:

Sales Journal

Used for customer invoices and credit notes. A default income account is defined.

Purchase Journal

Used for vendor bills and expense invoices. A default expense account is defined.

Bank Journal

Used for bank transactions. A separate journal is created for each bank account.

Cash Journal

Used for cash transactions. Separate cash registers can be defined per branch or location.

Miscellaneous Journal

Used for special operations such as manual corrections, depreciation and exchange differences.

Tip: Organise journals around your business processes. For example, you can create a separate sales journal for e-Invoice sales. That makes filtering reports easier.

Creating a Customer Invoice

What You Will Learn in This Section

  • Creating an invoice automatically from a sales order
  • Creating a customer invoice manually
  • Understanding invoice states and the workflow
  • Sending and following up invoices

The customer invoice is the official financial document of a sale. In PORTWARE an invoice can be created in three ways:

Ways to Create an Invoice

1. Automatic Invoice from a Sales Order

The most common and recommended way. After the sales order is confirmed:

Sales Order → Delivery → Invoice
Accounting Budgets

Creating a customer invoice - the screen for invoicing from a sales order

  1. Click the "Create Invoice" button on the sales order
  2. Choose the invoicing method:
    • Regular Invoice: For the full order amount
    • Down Payment: for a fixed amount or percentage
    • Delivered Quantities: only for what has been shipped
  3. Check the invoice and click the "Confirm" button

2. Creating an Invoice Manually

To create an invoice directly, without a sales order:

Accounting → Customers → Invoices → New
  1. Customer: choose the customer to invoice
  2. Invoice Date: enter the invoice date
  3. Due Date: calculated automatically from the payment terms
  4. Invoice Lines: add the product/service, quantity and unit price
  5. Taxes are applied automatically (from the product and customer settings)
  6. Click the "Confirm" button

Invoice States

State Description What You Can Do
Draft The invoice was created but not confirmed yet Can be edited or deleted
Posted The invoice was confirmed and the accounting entry created Send, Register Payment
Paid Paid in full and reconciled A closed transaction
Partially Paid A partial payment was received; a balance remains Follow up the remaining payment
Overdue The due date has passed without payment Start payment follow-up
Cancelled The invoice was cancelled A reversal entry was created

Scenario: Invoicing a Service Sale

Situation: You sold your customer 50,000 TL + VAT of consulting services. The payment term is 30 days.
  1. Follow Accounting → Customers → Invoices → New
  2. Choose the customer in the Customer field (the payment term comes in automatically)
  3. Add the "Consulting Service" product to the invoice line
  4. Enter Quantity: 1, Unit Price: 50,000 TL
  5. VAT is calculated automatically (18% = 9,000 TL)
  6. Click the "Confirm" button (invoice no: INV/2026/0001)
  7. Send it to the customer with "Send by E-mail"
Result: When the invoice is confirmed, the accounting entry is created automatically:
  • 120 Trade Receivables: 59,000 TL (Debit)
  • 600 Sales: 50,000 TL (Credit)
  • 391 VAT Calculated: 9,000 TL (Credit)
Tip - Invoice Numbering: PORTWARE assigns invoice numbers automatically (e.g. INV/2026/0001). If you use Turkish e-Invoice, the ETTN number from the Revenue Administration (GİB) is recorded as well.

How to Do It in PORTWARE

Creating a customer invoice manually:

  1. Follow Accounting Customers Invoices
  2. Click the New button at the top left
  3. Choose the customer to invoice in the Customer field
  4. Check the Invoice Date field (default: today)
  5. Choose the due term in the Payment Terms field (e.g. 30 Days)
  6. In the invoice lines table, click Add a line and fill in:
    • Product: choose the product or service sold
    • Quantity: enter the number of units
    • Unit Price: enter the price (it can come from the product)
    • Taxes: filled in automatically from the product (e.g. 20% VAT)
  7. Check the invoice total at the bottom right
  8. Finalise the invoice with the Confirm button
  9. Use the Send by E-mail button to send the invoice to the customer

Invoicing from a sales order:

  1. Go to Sales Orders
  2. Open the confirmed sales order
  3. Click the Create Invoice button
  4. Choose the invoicing type (regular/down payment/delivered)
  5. Check the invoice created and Confirm

Recording Vendor Bills

Vendor bills are the financial record of the goods or services you buy. Recording them correctly and on time affects both your VAT deductions and your vendor relationships.

Ways to Record a Vendor Bill

1. Automatically from a Purchase Order

The easiest way when there is a purchase order:

  1. Click "Create Bill" on the purchase order
  2. Enter the vendor's invoice number
  3. Check the amounts
  4. Click "Confirm"

2. Manual Entry

Accounting → Vendors → Bills → New

3. Automatic Recognition with OCR

Extract the data automatically by uploading an image of the bill:

  1. Upload the PDF or image of the bill
  2. The system recognises the vendor, amount, tax and lines automatically
  3. Check them and correct if needed
  4. Confirm

Vendor Bill Fields

Field Description Why It Matters
Vendor The company issuing the bill Critical for payment and reconciliation
Bill Reference The vendor's invoice number Duplicate entry check
Bill Date The date the bill was issued Determines the VAT period
Accounting Date The posting date (can differ) Affects the period close
Due Date The last date for payment Cash flow planning
Attention - Duplicate Bills: PORTWARE warns you when you try to record a second bill for the same vendor with the same reference number. This prevents the risk of paying twice.
For VAT Deduction: When you record a vendor bill, the VAT on it is posted automatically to account "191 - Deductible VAT". On the VAT return this amount is deducted from the VAT calculated.

How to Do It in PORTWARE

Recording a vendor bill:

  1. Follow Accounting Vendors Bills
  2. Click the New button at the top left
  3. Choose the company issuing the bill in the Vendor field
  4. Enter the vendor's invoice number in the Bill Reference field (critical for the duplicate check!)
  5. Bill Date: enter the date of the vendor's bill
  6. Accounting Date: the posting date (usually the same as the bill date)
  7. In the bill lines table:
    • Product: choose the product/service purchased
    • Enter the Quantity and Unit Price
    • Check the amounts against the vendor's bill
  8. Match the total with the vendor's bill
  9. Click the Confirm button

Automatic bill recognition with OCR:

  1. Click the Upload button in the vendor bills list
  2. Choose the PDF or image of the bill
  3. The system recognises the vendor, amount and lines automatically
  4. Check the recognised values and correct them if needed
  5. Save with Confirm

Collections and Payments

Recording an invoice and recording a payment are separate operations. The invoice creates a receivable or payable; the payment closes it. In PORTWARE both are tracked carefully.

Customer Collections

When you receive a payment from a customer:

Method 1: From the Invoice

  1. Open the invoice
  2. Click the "Register Payment" button
  3. Enter the payment method (bank/cash), amount and date
  4. Confirm - the invoice moves to "Paid" automatically

Method 2: Batch Collection

Accounting → Customers → Payments → New
  1. Choose the customer
  2. Enter the total amount collected
  3. The system lists the open invoices
  4. Choose which invoices to close (partial payments are supported)
  5. Confirm

Vendor Payments

When paying a vendor:

Select Bill → Register Payment → Reconciliation

Payment Methods

Cash

Posted to the cash journal. The cash register should be closed daily.

Bank Transfer

EFT/wire transfers. Matched through bank reconciliation.

Cheque

Cheques received and issued are tracked. The due date matters.

Credit Card

POS collections. The commission expense is recorded separately.

Payments Dashboard

Payment management dashboard - a visual summary of collections and payments

Scenario: Receiving a Partial Payment

Situation: Your customer paid 30,000 TL of a 50,000 TL invoice by bank transfer. The remaining 20,000 TL will be paid next month.
  1. Open the invoice (Accounting → Customers → Invoices)
  2. Click the "Register Payment" button
  3. Enter 30,000 TL in the amount field
  4. Choose "Bank" as the payment method
  5. Enter the payment date and confirm
  6. The invoice status is updated to "Partially Paid"
  7. The remaining 20,000 TL is shown as the balance
Payment Follow-up Automation: You can set up automatic reminder e-mails for overdue invoices. In the Accounting → Configuration → Follow-up Levels menu, define different message templates for different delays.

How to Do It in PORTWARE

Registering a customer collection from the invoice:

  1. Go to Accounting Customers Invoices
  2. Open the invoice being paid (its state must be Posted)
  3. Click the Register Payment button
  4. Amount: enter the amount received (it can be partial)
  5. Date: choose the payment date
  6. Journal: choose the payment method:
    • Bank: for EFT/wire transfers
    • Cash: for cash collections
  7. Memo: add a payment note (optional)
  8. Save with Create Payment

Registering a batch collection:

  1. Go to Accounting Customers Payments
  2. Click the New button
  3. Payment Type: choose "Receive"
  4. Partner: choose the customer
  5. Amount: enter the total amount collected
  6. Save with Confirm
  7. The system lists the open invoices - choose which ones to close

Registering a vendor payment:

  1. Go to Accounting Vendors Bills
  2. Open the bill to be paid
  3. Click the Register Payment button
  4. Enter the payment details and Create Payment

Bank Reconciliation

What You Will Learn in This Section

  • Why bank reconciliation is critical
  • Manual and automatic matching
  • Using reconciliation models
  • Resolving unmatched transactions

Bank reconciliation is matching the transactions on your bank statement with your accounting records. It guarantees the accuracy of your financial records and helps you spot errors, missing entries or fraud.

Why Reconcile the Bank?

  • Accuracy check: do the records match the bank statement?
  • Missing entries: unrecorded bank fees and interest
  • Error detection: wrong amounts, double entries
  • Reliable financial statements: evidence for the audit
Journals

Journals — sales, purchase, bank and cash; each with its default account

The Reconciliation Process

Accounting Dashboard → Bank Journal → the "X to Reconcile" button
  1. Upload the bank statement (OFX, QIF and CSV formats are supported)
  2. Review each transaction line:
    • If there is a green match suggestion → confirm it
    • If manual matching is needed → choose the invoice/payment
    • If a new entry is needed → create it by choosing an account
  3. Complete the reconciliation with the "Validate" button

Reconciliation Models

For recurring transactions (e.g. monthly rent, bank fees) you can create reconciliation models. These models recognise and match the transactions automatically.

Accounting Dashboard → Bank Journal (⋮) → Models

Model Example: Bank Fees

Field Value
Model Name Bank Fees - Garanti
Type Create an entry with a counterpart account
Matching Criterion The label contains "KOMİSYON" (fee)
Counterpart Account 780 - Financial Expenses

Scenario: Monthly Bank Reconciliation

Situation: The January bank statement has 47 transactions: 40 customer collections, 5 vendor payments and 2 bank fees.
  1. Click the "47 To Reconcile" button on the bank journal
  2. The system matches the 40 customer collections with open invoices automatically (green)
  3. Match the 5 vendor payments with the vendor bills
  4. Apply the "Bank Fees" model to the 2 bank fees
  5. Validate all the lines
  6. Reconciliation complete: bank balance = accounting balance ✓
Important: Do not close a period without reconciling! Unmatched transactions can distort the balance sheet. Watch the "Outstanding" (transit) accounts especially carefully.

How to Do It in PORTWARE

Reconciling the bank:

  1. Go to the Accounting main screen (dashboard)
  2. Click the X To Reconcile button on the bank journal's card
  3. Upload the bank statement: click the
    • Upload button
    • Choose the bank statement in OFX, QIF or CSV format
  4. Review each transaction line:
    • Green suggestions: an automatic match was found - click Validate to accept it
    • Manual matching: choose the invoice/payment on the Open Balances tab
    • New entry: create it by choosing an account on the Manual Operations tab
  5. After processing every line, click the Validate button

Creating a reconciliation model (for recurring transactions):

  1. Click the ⋮ menu at the top right of the bank journal card
  2. Choose Models
  3. Click the New button
  4. Model Name: give a descriptive name (e.g. "Bank Fees - Garanti")
  5. Model Type: choose "Create an entry with a counterpart account"
  6. Matching Criterion: define the label filter (e.g. contains "KOMİSYON")
  7. Counterpart Account: choose the account to post to (e.g. 780 Financial Expenses)
  8. Save the model with Save

Period Closing

What You Will Learn in This Section

  • Understanding the monthly and annual closing processes
  • Locking a period
  • Applying the closing checklist
Budget Overrun Warning

Period controls - budget overrun alerts and control panel

Period closing means completing the financial transactions of a period (month, quarter, year) and making them ready for reporting. It guarantees the accuracy of the financial statements.

Monthly Closing Checklist

Step Action Purpose Check
1 Record all invoices Complete income/expenses No draft invoices left?
2 Bank reconciliation Cash accuracy Are all banks reconciled?
3 Cash count Physical cash check Cash balance = actual cash?
4 Stock valuation Inventory cost Are the stock accounts up to date?
5 Depreciation entry Fixed asset expense Was the depreciation schedule applied?
6 VAT reconciliation Tax check Are accounts 191 and 391 balanced?
7 Period lock Protect the past Is the period closed to entries?

Locking a Period

The period is locked to prevent new entries in a period that has been closed:

Accounting → Configuration → Settings → Fiscal Periods → Lock Date

For All Users

No one can post in the period up to this date. Usually set to the month end.

Except Advisers

Only authorised users (accountants) can post in the past period.

Special Year-End Operations: At the annual close, additionally:
  • Revaluation of foreign currency accounts
  • Updating provisions (doubtful receivables, inventory write-downs)
  • Transferring the period's profit to equity
  • Creating the e-Ledger (Turkey)

How to Do It in PORTWARE

Period lock settings:

  1. Go to Accounting Configuration Settings
  2. Find the Lock Date section
  3. Lock Date for All Users: no one can post up to this date (e.g. 31/01/2026)
  4. Lock Date for Non-Advisers: no one except authorised accountants can post
  5. Click the Save button

Monthly closing checklist:

  1. Draft invoice check: Accounting Customers/Vendors Invoices - confirm or delete the invoices still in draft
  2. Bank reconciliation: finish reconciling every bank journal from the dashboard
  3. Depreciation entry: Accounting Asset Management Assets - confirm the pending depreciation entries
  4. VAT reconciliation: Accounting Reporting Tax Report - check accounts 191 and 391
  5. Period lock: update the lock date in Settings

The VAT Return

In Turkey the VAT return is filed monthly. PORTWARE calculates the VAT calculated and the deductible VAT automatically and produces the report for the return.

The VAT Calculation Logic

VAT Calculated (391) − Deductible VAT (191) = VAT Payable/Carried Forward

Getting the VAT Report

Accounting → Reporting → Tax Report
  1. Choose the period range (e.g. January 2026)
  2. The report shows amounts grouped by tax type
  3. Click any line to see the detailed moves
  4. Export to Excel/PDF

VAT Rates in Turkey

Rate Applies To Example
%20 The general rate (most goods and services) Electronics, furniture, services
%10 The reduced rate Food (some), textiles
%1 The special reduced rate Basic food items
%0 Exempt/export Exports, transit trade
VAT Withholding: In some sectors (construction, cleaning services, etc.) part of the VAT is withheld by the buyer and paid to the state. PORTWARE supports withholding calculations with the l10n_tr_witholding module.

Depreciation Management

🖼️
Asset and Budget ManagementThis screenshot is being renewed. The previous image came from the live system and carried real people's and customers' data, so it was withdrawn; an image from the PORTWARE demo company will replace it.

Asset and budget tracking - depreciation planning and budget control

Depreciation spreads the cost of fixed assets (machinery, vehicles, fixtures) over their useful life. It is critical for showing the true profit or loss.

Depreciation Methods

Method Description Use
Straight-Line The same amount is expensed every year The most common, simple to calculate
Declining Balance More expense in the early years Assets that lose value quickly
Units of Production Expense by usage Production machinery

The Depreciation Schedule in PORTWARE

Accounting → Asset Management → Assets
  1. Create an asset record when a fixed asset is purchased
  2. Set the depreciation method and duration
  3. The system creates the depreciation schedule automatically
  4. The depreciation entry is created automatically at the end of each month/year

The Depreciation Journal Entry

Account Debit Credit
770 - General Administrative Expenses X TL -
257 - Accumulated Depreciation (-) - X TL
Turkish Compliance: In Turkey, depreciation rates are set by the Ministry of Finance. For example 25% for computers (4 years) and 10% for furniture (10 years). Choosing the right category on the asset record matters.

Balance Sheet

The balance sheet is a financial snapshot of your company on a given date. It shows what you own (assets), what you owe (liabilities) and your net worth (equity).

The Balance Sheet Equation

ASSETS = LIABILITIES + EQUITY

Opening the Balance Sheet

Accounting → Reporting → Balance Sheet

Balance Sheet Structure

Section Sub-Items Example
Assets Current Assets Cash, bank, receivables, inventory
Non-Current Assets Buildings, machinery, vehicles
Liabilities Short-Term Liabilities Trade payables, taxes payable
Long-Term Liabilities Bank loans
Equity Capital + profits Capital, retained earnings, profit for the period
The PORTWARE Advantage: The balance sheet is calculated live. No year-end carry-forward is needed - the period's profit flows into equity automatically.

How to Do It in PORTWARE

Viewing the balance sheet report:

  1. Follow Accounting Reporting Balance Sheet
  2. By default the report is shown for today's date
  3. Use the Date filter in the top toolbar to change the date
  4. To compare, turn on the Comparison option:
    • Previous period
    • Same period last year
    • A custom date range
  5. Click any account line to see the sub-accounts and moves
  6. Export: download Excel/PDF with the button

Income Statement (Profit and Loss)

The income statement shows your company's performance over a period (month, quarter, year). How much did you earn, how much did you spend, and what was the profit or loss?

The Income Statement Formula

NET PROFIT = INCOME − EXPENSES

Opening the Income Statement

Accounting → Reporting → Profit and Loss

Income Statement Structure

Item Description Account Group
Sales Revenue Income from the main activity 600-602
Cost of Goods Sold The direct cost of the products sold 620-622
= Gross Profit Sales - Cost -
Operating Expenses Marketing, administration, R&D expenses 760-770
= Operating Profit Gross Profit - Operating Expenses -
Financial Expenses Interest, fees 780
= Profit Before Tax Operating Profit ± Other -
Tax Expense Corporate tax 691
= NET PROFIT/LOSS The final result of the period 590
Comparing Periods: With the "Comparison" option on the income statement you can analyse previous periods side by side. Use monthly or yearly comparisons to follow growth trends.

How to Do It in PORTWARE

Viewing the income statement (Profit and Loss) report:

  1. Follow Accounting Reporting Profit and Loss
  2. Default period: from the start of this year to today
  3. To change the period, use the Period filter:
    • This month / This quarter / This year
    • Last month / Last quarter / Last year
    • A custom date range
  4. Analyse across periods with the Comparison option
  5. Click any income/expense item to see the detailed moves
  6. Export as PDF or Excel

Cash Flow Statement

The cash flow statement shows cash coming into and going out of your company. Even a profitable company can run short of cash - this report lets you see that risk.

Cash Flow Components

Operating Activities

Cash flow from the main activity: customer collections, vendor payments, salaries

Investing Activities

Buying and selling fixed assets: machinery purchases, property sales

Financing Activities

Borrowing and equity: drawing loans, paying dividends

Accounting → Reporting → Cash Flow Statement
Cash vs Profit: Profit ≠ cash. A sale on credit creates profit but no cash comes in. That is why both the income statement and the cash flow must be followed.

Aged Balance Reports

Aged balance reports show how long your receivables and payables have been open. This is critical for prioritising collections and managing credit risk.

Aged Receivables

Accounting → Reporting → Partner Reports → Aged Receivable

The report groups receivables by how overdue they are:

Customer Not Due 1-30 Days 31-60 Days 61-90 Days 90+ Days Total
ABC Ltd. 10.000 5.000 - - - 15.000
XYZ Inc. - - 8.000 3.000 - 11.000
Problem Customer - - - - 25.000 25.000
Receivables More Than 90 Days Overdue: Receivables in this category may need a provision for doubtful debts. Showing unrealistic receivables in the financial statements is misleading.

Turkish Accounting Compliance

PORTWARE includes comprehensive localisation modules to meet Turkey's statutory accounting requirements.

Turkish Localisation Modules

Module Function
l10n_tr_base Basic Turkish compliance, the TRY currency
l10n_tr_2kb The Uniform Chart of Accounts (2KB)
l10n_tr_bank Turkish banks and branch details
l10n_tr_tax_office The list of tax offices
l10n_tr_witholding VAT withholding rates
gib_base_2kb The GİB e-document infrastructure
gib_invoice_2kb Sending e-Invoices
gib_incoming_invoice_2kb Managing incoming e-Invoices

The Turkish e-Invoice System

In Turkey e-Invoice is mandatory for companies above a given turnover threshold. PORTWARE manages e-Invoice processes through integration with the Revenue Administration (GİB).

The e-Invoice Workflow

Create Invoice → Confirm → Send to GİB → Receive Approval

e-Invoice Types

Type Use Recipient
e-Invoice In B2B trade To e-Invoice taxpayers
e-Archive To individual customers To those who are not e-Invoice taxpayers
e-Waybill The shipping document To all taxpayers

Technical Requirements

  • GİB registration: e-Invoice taxpayer status must be obtained
  • Integrator: an agreement with an authorised integrator such as İZİBİZ or Kıta
  • Financial seal: an e-signature or financial seal for the digital signature
  • Format: the UBL-TR 1.2 standard
Legal Requirement: Companies that are e-Invoice taxpayers cannot issue paper invoices to other e-Invoice taxpayers. The system automatically checks whether the customer is an e-Invoice taxpayer.

How to Do It in PORTWARE

Sending an e-Invoice:

  1. Create and confirm a normal customer invoice
  2. Click the Send e-Invoice button on the invoice detail page
  3. The system checks whether the customer is an e-Invoice taxpayer:
    • If they are an e-Invoice taxpayer: it is sent as an e-Invoice
    • If not: it is created as an e-Archive invoice
  4. Follow the sending status in the e-Invoice Status field:
    • Pending: sent to GİB, waiting for approval
    • Approved: accepted by GİB
    • Rejected: there is an error; a correction is needed
  5. View the ETTN number of the approved invoice

Processing incoming e-Invoices:

  1. Go to Accounting Vendors Incoming e-Invoices
  2. Newly received invoices are listed automatically
  3. Review the invoice and Accept or Reject it
  4. An accepted invoice is recorded automatically as a vendor bill

The 2KB Chart of Accounts

Chart of accounts

The Turkish uniform chart of accounts — code, name, type and reconciliation

In Turkey the Uniform Chart of Accounts (2KB) is mandatory. PORTWARE provides the standard chart ready to use with the l10n_tr_2kb module.

Opening the Chart of Accounts

Accounting → Configuration → Chart of Accounts

Main Account Groups

Group Code Description
1100-199Current Assets
2200-299Non-Current Assets
3300-399Short-Term Liabilities
4400-499Long-Term Liabilities
5500-599Equity
6600-699Income Statement Accounts (Income)
7700-799Income Statement Accounts (Expenses)
8800-899Cost Accounts
9900-999Memorandum Accounts
Customisation: You can extend the standard chart of accounts to fit your business. For example, you can open sub-accounts under 600-Sales for different product groups (600.01, 600.02, etc.).

Financial KPIs

Follow these key performance indicators regularly to measure your business's financial health:

Current Ratio

Current Assets / Short-Term Liabilities (target: >1.5)

Receivables Turnover

Sales / Avg. Receivables (in days)

Gross Profit Margin

(Sales - COGS) / Sales × 100

Net Profit Margin

Net Profit / Sales × 100

Debt/Equity

Total Liabilities / Equity (target: <2)

Cash Conversion Cycle

Inventory + receivable - payable days

Frequently Asked Questions

Can I correct an invoice after confirming it?

No, a confirmed invoice cannot be changed - accounting principles require this. To correct it:

  • Credit note: cancels the invoice partly or fully
  • New invoice: issue a new invoice with the corrected amount

For an e-Invoice, a cancellation/rejection must be notified to GİB.

How do I prevent duplicate bills?

PORTWARE warns you when you try to record a second bill for the same vendor with the same reference number. However:

  • Enter the vendor's invoice number correctly
  • If a different reference number was entered, the system cannot detect it
  • Check the list of open bills before confirming
Can I post to a past period?

Yes, if the period is not locked. However:

  • If the VAT return has been filed, posting to the past period requires an amended return
  • If the year has been closed, posting to the past year is usually problematic
  • Best practice: lock periods on time
How are exchange differences recorded?

PORTWARE calculates exchange differences automatically:

  • The rate on the invoice date is compared with the rate on the payment date
  • The difference is posted automatically to the exchange gain/loss account
  • Open currency positions are revalued at period end

Check the exchange difference accounts in Accounting → Configuration → Settings → Default Accounts.

Is e-Invoice mandatory?

It is mandatory for companies above a given turnover threshold. For 2024:

  • Companies with gross sales over 3 million TL are e-Invoice taxpayers
  • Those over 5 million TL are e-Ledger taxpayers
  • An e-Invoice taxpayer cannot issue a paper invoice to another e-Invoice taxpayer

Check the GİB website for the current thresholds.

Best Practices

Daily

  • Import the bank statement
  • Record incoming bills
  • Close the cash register

Weekly

  • Bank reconciliation
  • Follow up overdue receivables
  • Plan vendor payments

Monthly

  • Prepare the VAT return
  • Depreciation entry
  • Period close and lock
  • Review the financial statements

Yearly

  • Year-end revaluation
  • Update provisions
  • Create the e-Ledger
  • Prepare for the audit
Automation Tip: Automate recurring operations:
  • Automatic import of bank statements
  • Automatic matching with reconciliation models
  • Automatic payment reminder e-mails
  • Scheduled reports sent by e-mail