Why the BWA Report Is Often Misunderstood

Term explanation

BWA = An internal profit and loss statement in "DATEV language"

The so-called BWA, as it is created via DATEV, is essentially an internal profit and loss statement, prepared according to a specially adapted structure scheme.

It differs from the classic profit and loss statement according to HGB – which is legally required – in that it is used exclusively for internal purposes. It is intended to provide insights that are relevant for management, planning, and control – not for the annual financial statement or the tax office.

Specifically means:

The BWA is an internal tool, not a legally defined size – developed for practical work in tax consulting firms and companies.

The misunderstanding: "BWA" as a fixed term

The term "BWA" has become established in many companies and firms – as if it were an official part of accounting. But it is not.

It comes from the software world – particularly from DATEV – and describes an internal structuring scheme that can be individually customized. And that is exactly what leads to the problem:

There is no uniform definition. Each firm, each company uses the term somewhat differently. The "BWA" can look completely different depending on the system, region, or advisor.

In smaller and medium-sized companies, "BWA" is often used as a collective term for internal profit and loss statements – which is understandable, but rarely contributes to clarity.

It's like with the station wagon: all cars with a large trunk are referred to as "station wagons," while this term is actually reserved for Mercedes.

Why the BWA is still important

Regardless of the terminology, the idea behind the BWA is absolutely sensible.

An internal P&L – no matter what you call it – provides:

• Insights into cost structure and profitability
• Key figures for strategic decisions
• Transparency about company development

Especially in small and medium-sized enterprises, where there is often no dedicated controlling department, business evaluation plays a crucial role – it often replaces traditional controlling here.

Odoo: BWA in its own way – and more

Even in modern ERP systems like Odoo, business evaluation is a central topic. And: In Odoo, many things are more flexible and intuitive than in traditional systems.

Odoo enables:

The creation of an unlimited number of internal reports (P&L, balance sheet, KPIs, etc.). Fully customizable evaluation schemas – tailored to your business logic. The use of account keywords to specifically assign accounts to certain report items.

This means: Every report can be customized – whether for internal controlling, external consultants, investors, or banks.

Another advantage: The reports in Odoo are not rigid, but dynamically linked to the bookings – changes are possible at any time without having to work double. Additionally, one can also combine a BWA with other KPIs, e.g., an overview of working capital. Or one can break down the "Sales Revenue" position not only by "Sub-accounts" but also by partners (equivalent to receivables) or products.

Conclusion

The term "BWA" is not a protected, standardized term of accounting – but a practical tool that is often misunderstood.

More important than the designation, however, is the benefit: transparency, clarity, and decision-making ability in corporate management.

With Odoo – and the right support from syscoon – companies can create exactly such evaluations, but in an environment that can do much more than "just" a BWA.

Thus, a "bad word" becomes a real management tool – and your accounting becomes a reliable basis for decision-making.