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Profit and loss statement

Former Member
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In Profit and loss statement the expenditure shows in minus.Expenditure has debit balance.We have selected in setting as " display credit balance with negative sign".So how come the expenditure shows in minus.

what is the reason for the same.

Accepted Solutions (0)

Answers (2)

Answers (2)

lorna_real
Active Participant
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Hello Praveen,

In the Profit and Loss Statement, the display of the amounts are different from the G/L Account balance. This is the presentation:

Revenue (Cr. Balance) - shown as Positive

Revenue (Dr. Balance) - shown as Negative

Expenses (Dr. Balance) - shown as Negative

Expenses (Cr. Balance) - shown as Positive

This is because in the Profit and Loss, expenses are considered as reductions from the revenues. With the signs inverted, the Net Income that will show positive. If the amount is in negative (in brackets), it is a net loss.

The presentation in the report does not depend on the option Display Credit Balance with Negative Sign option in the Company Details.

Hope the above helps.

Regards,

Lorna Real

former_member186095
Active Contributor
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Praveen,

I think the expenditure could be minus or plus but depends on the transactions in the period.

I've tested and replicated your issue in my database and I've seen that some expenditure is minus in some periods and some others are not.

You could also track the transaction of expenditure accounts using general ledger report.

Anyway, try to develop a report like crystal or reporting service so that the minus sign is not included.

Rgds,

Former Member
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Hi Jimmy,

In my case , even for accounts with debit balance it is showing minus sign in expenditure profit and loss.I believe only accounts with credit balance should be with negative sign as we made the setting 'display credit balance with negative sign'.

Pls confirm why is it so.

former_member186095
Active Contributor
0 Kudos

Hi Praveen,

I quote from this note 904002 that explain about he function of display credit balance with negative sign'. :

Solution

Under Administration->System Initialisation->Company Details and the 'Basic Initialisation' tab you will find the setting 'Display Credit Balance with Negative Sign'. This setting decides how Customer and Supplier balances will be displayed.

NOTE!

When creating a company it is important to know that this setting is irreversible once transactions have been made in the company.

When this box IS checked the following applies:

Customer balances will be displayed as Positive.

Supplier balances will be displayed as Negative.

When this box IS NOT checked the following applies:

Customer balances will be displayed as Negative.

Supplier balances will be displayed as Positive.

This setting also influences the entry of opening balances for the G/L accounts. Depending on this setting, the opening balances must be entered as positive or negative numbers.

By default this box is checked when a new company is created.

so, based on the note, there is no relation with the minus sign in your expenditure account balance

Rgds,