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To view the "Profit Loss Report" expand the "Report" menu from the left sidebar and click on the "Profit Loss Report" menu.
Profit and Loss Report, also known as an Income Statement, is a financial statement that summarizes the revenues, expenses, and resulting profits or losses of a business over a specific period, typically a month or year. The Profit and Loss report provides valuable scenarios into the financial performance of the business.
Revenue: This section of the report lists all the income generated by the business during the reporting period. Revenue sources may include sales of products or services, as well as any other sources of income such as Tax, Delivery/Service, Installment Sale(Delivery Charge + Percentage of Interest), Income, Servicing, Sale Returned etc. earned.
Cost of Sale: This section includes all the direct costs associated with producing or acquiring the products or services sold by the business.
Gross Profit: Gross profit is calculated by subtracting the "Cost of Sale" from the total revenue. It represents the amount of money the business has earned from its core operations after accounting for the direct costs of producing product or delivering services. Gross Profit = Revenue - Cost of Sale.
Other Expenses: This section includes all the indirect costs incurred by the business in its day-to-day operations. The Other Expenses may include expense, salaries, and any other expenses not directly tied to the production of goods or services.
Net Profit: Net profit is the final result after subtracting all Other Expenses from the gross profit. It represents the overall profitability of the business during the reporting period. If the expenses exceed the gross profit, the result is a net profit. Net Profit = Gross Profit - Other Expenses.
Select the option from "Costing Method" field to view the report based on the "Average Costing of last 3 Purchase" or the "Last Purchase Price".
Below snapshot shows a method to calculate "Gross profit" and "Net profit".
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