The Profit and Loss report reflects revenue and expenses and allows you to see net profit for the selected period.
In the report, the profit is based on the Shipments, while the losses are derived from the Outgoing Payments (Outgoing Payment, Outgoing Cash Payment) and Write-offs. The report includes the amounts of Outgoing Payments with an accrual date that falls within the selected period.
To view the Profit and Loss report, select Financials → Profit and Loss.
Viewing the report
Use the filters to sort the data you need. Click to save the search parameters. Click
to customize the report.
The following indicators are specified in the report:
- Revenue = Shipment − Returns. The moment of revenue recognition is considered to be the creation of a Shipment, not the receipt of money.
- Cost — the cost of sold products.
- Gross profit = Revenue − Cost.
- Operating expenses — the expenses amount except Product Purchases, Taxes, Transfers, and Returns.
- Operating income = Gross profit − Operating expenses. This is profit before tax. Incomes not related to the company’s core activities are not taken into account.
- Taxes — the total amount of Payments Made, where the expense item Taxes is indicated.
- Net income = Operating income − Taxes.
There are more settings related to the Profit and Loss report you need to know:
- Print the reports in Excel, PDF, Open Office Calc.
- Receive automatic reports by email
Expense Items In the Report
In the Profit and Loss report, the following expense items are considered:
- Expenses for purchases,
- Expenses for returns,
- Taxes,
- Transfers,
- Marketing and Advertising,
- Rent,
- Salary.
The expense items are indicated in the Payments Made — Outgoing Payment and Outgoing Cash Payment. In the Payments Made, the expense item Expenses for purchases is indicated automatically by default and can be changed. If the payment is based on a Return, the expense item Expenses for returns is indicated automatically and cannot be edited.
Expense Item Setup
You can create and configure expense items according to your needs.
You can edit an expense item in the Payments Made (Outgoing Payment, Outgoing Cash Payment). To do this, open the transaction, click the edit icon to the right of the expense item, make the changes, and save them.