Profit And Loss report

[Former Member]

Hi To All,

When use Profit And Loss report in Financial Module.

Select Revenue And Expenditure for Profit And Loss report .

But When we goto purchase raw materials From Purchase Order to A/P Invoice then Outgoing payment.

Not show any Amount in the Expenditure side but purchase any material must be side on Expenditure.becouse Item Inventory Account mapped with Asset Drawer with SAP demo database.

So Please help me And What should i do ?

Thanks

[Former Member · Accepted solution]

Hi Neetu

SAP Business One use a continuous (perpetual) inventory system. Under Administration > System Initialization > Company Details > Basic Initialization TAB > Use Perpetual Inventory will be ticked indicating that you are using continuous stock. You also have the option of using the Purchase Accounts system. This allows you to create 2 extra G/L accounts under the Income & Expenditure section to see the purchases expense. These 2 options can only be selected or changed before any transactions are posted.

If you really need the above changed, your only option is to restart with a new database.

Let me know if you need further guidance on the above.

Kind regards

Peter Juby

[msundararaja_perumal]

Hi,

You must know the basic concepts of accounts.You must consult with the accounting person of your client,while setting the G/L determination.

If you buy a item,it is an asset for you.Even though you are spending money to procure the item,you are only having that item.

So as long as it remains with you it is an asset for you.

This is the reason that the inventory account is mapped in the warehouse in the asset drawer.

I hope this gives you a resolution.