Profit loss

[Former Member]

Hi ALL,

We created purchase order for the item in which the G/L account is managed by Item Group.

In Item Group -->>Inventory Account is one of the Asset drawer Account.(material and Consumable),then created Invoice.

but when we are generating profit/Loss Statement ,it is not showing how much expenditure we did.against particular item or group ..

why and how to get those values`.

Thanks,

Neetu

[Former Member · Accepted solution]

Hi Neetu,

This is basic accounting concept. An asset account will only affect Balance Sheet but not P&L.

Only COGS accounts can be reflected in P&L reports.

Thanks,

Gordon

[Former Member · Accepted solution]

Please explain COGS accounts .

[former_member186095 · Accepted solution]

Hi,

COGs account is a cost of good solds account. It is in the drawer cost of sales. Cost of sales is one of P&L drawers.

Inventory account is an offiset account for COGS account in the delivery and inversely in the good receipt PO.

Rgds,

[Former Member · Accepted solution]

thank you ,

COGS Account Amount Come from Purchase of perticular Item(Price) or second is BOM i am right.

But my Client want to see How much purchase For a Item group ,this will be Also expenditure in the P & L,

so Show in the P & L.

I Am Right or worng ?

[Former Member · Accepted solution]

If the items are used to produce their product for sales, then they are not normal expenditure but are part of sales cost. Those items should not be an assets.

In other words, they must put them in to COGS account to be reflect on the P&L report.

Thanks,

Gordon

[Former Member]

Hi Neetu

You can use Purchase Account system under Basic Initialization, but only if you have not posted any entries yet. SAP Business One uses a Perpetual Inventory system and not Periodic by default. If you need to track purchases, and don't want to reimplement, you could use 2 freight charges, one for debit and one for credit against 2 G/L accounts to replicate the Purchase Account System.

Let me know if you are interested in setting this up and i will guide you. You can also look at the following thread:

Kind regards

Peter Juby