Profit Period in balance sheet and P&L is not equal.

[Former Member]

Dear Experts,

I have an account named "intermediate products" which is a balance sheet account. this account should have 0 balance,

So I moved the balance to "Cost Of Sales" account which is a P&L account.

but after that the profit period in balance sheet is greater then profit period in P&L

I need to have the same profit period, please help.

Regards,

David

[Former Member · Accepted solution]

Hi,

This could be a Financial template issue. when we move/ add accounts to Chart of Accounts, the Financial report templates are not automatically updated. To check on this, please keep the check box "Show Missing Accounts" checked in the Financials\Financial Report Templates window.

This will highlight any missing accounts when you run the reports and you can add it into the template.

Regards,

Hamsa

[former_member186095]

Hi,

try to read the ees pdf file about that. Here is a brief info from the file:

Differences between the Profit and Loss Statement and the Balance Sheet:
- Differences in the selection criteria for the profit and loss statement and the balance sheet e.g. u2018Accounts with Balance of 0u2019
- Correct criterion not selected e.g. u2018Add Closing Balancesu2019 is not selected when running the balance sheet.
- Use of different templates when running the financial reports. In the selection criteria of the balance Sheet and the Profit and Loss Statement, a user defined template maybe selected in the u2018Templateu2019 field. If all relevant accounts is not included in these templates then differences may occur. 
- A balance may exist on the cost of sales account. This originates from a journal entry posted to a previous financial year which has been closed before the journal was posted.
- The account selected for the u2018Period-End Closing Accountu2019 in u2018period-end closingu2019 (Module Administration --> Utilities --> Period-End Closing) has to be defined as a balance sheet account in the Equity (Capital & Reserves) drawer in the Chart of Accounts rather than as a profit and loss account in the chart of accounts (non-oprating income and expenditure). 
- Rounding in the reports may also cause differences (change in the decimal places)

Rgds,

http://tech.groups.yahoo.com/group/SBO_Knowledge_Village/

[Former Member]

Hi Jimmy,

Can you provide the link to the ees.pdf

I can't find it anywhere.

Regards,

David

[Former Member]

Hi,

Any idea? anyone?

Regards,

David

[former_member583013]

What do you mean by moved.

Without knowing where the intermediate products account is actually used it would hard to comment

[Former Member]

Dear Suda,

The "intermediate product" is an Asset account, the balance should be 0, but somehow it had a balance. so I reclass the balance using Journal Entry and add the balance to "Cost Of Sales" account, so the intermediate product balance now is 0.

Regards,

David

[former_member583013]

David,

It is important to understand which transaction posted to the intermediate product account. Because it this account has been debited some other account should have been credited.

Knowing the details completely is the only way to find out what is going on. Posting a JE to the COGS account to clear the balance might not probably be the correct way to handle this

[Former Member]

Dear Suda,

In G/L account determination "Intermediate products" is defined in WIP inventory account.

The transactions that will posted to "intermediate products" are

-Production order

-Issue for production

-Receipt from production