AO
Asked
I need a correction on the profit and Loss Report
(Sales Revenue- Sales Tax) - Cost of Goods Sold = Gross Profit
Gross Profit - Expenses = Net Profit
The cost of goods is derived from the cost attached to what has been sold and it should be average cost i.e
when i sell 3 items of x each costing 20, 30 and 40 the average cost is 20+30+40 /3 =30
so my profit and loss will look like this
sales ...................... ..................... 77.57 ex vat price
Less Cost of goods Sold .................... 25.86 ex vat average cost
Gross Profit ......................................................................... 51.86
Less Expenses rent 10
Net Profit 41.86
is possible let this be inform of a report on grid
n/b if no tax is activated the figures remain as they are in whole without removing tax
i would also like to confirm that this is one of the best systems based on design and process.
Kindly advise
(Sales Revenue- Sales Tax) - Cost of Goods Sold = Gross Profit
Gross Profit - Expenses = Net Profit
The cost of goods is derived from the cost attached to what has been sold and it should be average cost i.e
when i sell 3 items of x each costing 20, 30 and 40 the average cost is 20+30+40 /3 =30
so my profit and loss will look like this
sales ...................... ..................... 77.57 ex vat price
Less Cost of goods Sold .................... 25.86 ex vat average cost
Gross Profit ......................................................................... 51.86
Less Expenses rent 10
Net Profit 41.86
is possible let this be inform of a report on grid
n/b if no tax is activated the figures remain as they are in whole without removing tax
i would also like to confirm that this is one of the best systems based on design and process.
Kindly advise
- AOAnsweredhere is a sample reportAttachments
- MSAnsweredThere are 2 profit reports.
First general ledger under reports that calculates profit as [Total Sales - Total Purchases & Expenses]
Second on the daily/monthly sales calendar by clicking the day number/month name is calculated as [Total products revenue - products' cost (cost is calculated as per accounting method in system settings)]
If you find any issue with any of above, please test it on live demo and let us now the step to reproduce/replicate it on demo. - AOAnsweredAs indicated by you all those reports are wrong what ever type of method is applied in profit and loss the total sales revenue in profit and loss need to be ex Tax then you less the cost ( the cost can be average in average costing or just cost in standard costing without average) to get gross profit . purchases should not be applied anywhere in this report . Purchase should appear in balance sheet not profit and loss .the cost part must come from what has been sold.
1. First general ledger under reports that calculates profit as [Total Sales - Total Purchases & Expenses] wrong concept
exchange purchases with cost ex tax and sales to be ex tax
2. day number/month name is calculated as [Total products revenue(wrong) - products' cost (cost is calculated as per accounting method in system settings)] still wrong concept ( kindly point me to where this is ) - AOAnsweredattached is a sample profit and loss reportAttachments
- MSAnsweredFirst of all let me clear that every business, country and most states are having different rules and requirements. We can't make it compatible with all. This is general purpose software and if anyone need they can modify it as their requirements.
1. Please pay attention on the report, each and every thing is mentioned there, including taxes. You can calculate it as you need or modify the view as you like. If you are not sure, you can hire developer to help. There is no plan to change this section.
2. How wrong? If you are saying concept then I am sorry no plant o change them. If you are saying for any wrong values, please let me know the steps to reproduce it on live demo. - AOAnsweredfrom your own observation where do you apply purchases to come with profit ? when you purchase an item it should update value of your stock by increasing the stock( if your stock value was x then new item will make it xy assuming it was y when you sell you sell the item which has a part of the cost x to get your value of stock it will be x- xpart of cost attached on what has been sold then your profit will be sales of item y without vat - xpart cost without vat Kindly try to understand where i am coming from . what i am saying applies as a standard all over the world without exceptions in any country. Purchases should never appear in any profit and loss unless it is being taken as opening stock less closing stock to get cost of goods sold .
- MSAnsweredIf you don't need to add taxes then take the last section or add your own as you need.
There are 3 sections and calculated as (screenshot attached)
1. Total Sales - Total Purchase
2. Total Sales - Total Sales Taxes - Total Purchase
3. (Total Sales - Total Sales Taxes) - (Total Purchase - Total Purchase Taxes)
If you need any other calculation or whatsoever, you are free to change the page as you need. I can only point you to the view file and that would be `themes/default/admin/views/reports/profit_loss.php`
Thank you - AOAnsweredcan you customise this to my specification even if it means paying for it give me a quote on the same , i need this done [email protected]
- MSAnsweredI am not really clear about the requirements. Are you saying that you only need report to display
`(Sales Revenue - Sales Tax) - Cost of Goods Sold = Gross Profit Gross Profit - Expenses = Net Profit`
The `Sales Revenue` is `products sold price - products taxes`? If yes what about the sales order level taxes/discount etc.
The `Cost of Goods Sold` is the `products' cost - taxes` - AOAnsweredFor more comprehensive deliberation of my answer please read attached word documentAttachments
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