Profit and Loss - Revision history

Cyle van Niekerk at 11:21, 2 December 2013

2013-12-02T11:21:33Z

Simon Clive at 02:17, 21 June 2011

2011-06-21T02:17:29Z

Eliza at 23:46, 8 March 2011

2011-03-08T23:46:17Z

Andrew at 19:59, 14 February 2011

2011-02-14T19:59:12Z

Andrew at 19:58, 14 February 2011

2011-02-14T19:58:23Z

Admin: Created page with " More Detail= Account Accounting Concepts Account Types Accounts List Accounts Reports Balance Sheet BAS Report [[BAS R..."

2011-01-21T05:33:01Z

Created page with "<menu name=myMenu align=center> More Detail= Account Accounting Concepts Account Types Accounts List Accounts Reports Balance Sheet BAS Report [[BAS R..."

New page

<menu name=myMenu align=center>
More Detail=
[[Account]]
[[Accounting Concepts]]
[[Account Types]]
[[Accounts List]]
[[Accounts Reports]]
[[Balance Sheet]]
[[BAS Report]]
[[BAS Report List]]
[[Cash Flow Forecast]]
[[Cash Flow Statement]]
[[Dashboard]]
[[Journal Entry]]
[[Journal Entry List]]
[[Profit and Loss]]
[[Retained Earnings]]
[[Summary Sheet]]
[[Transaction Journal]]
[[Trial Balance]]
</menu>

== '''Overview''' ==

@@ Line 31: / Line 31: @@
 Profit = Revenue less Costs
-So monitoring profit also means monitoring and measuring revenue and costs. There are two parts to this:-
+So monitoring profit also means monitoring and measuring revenue and costs. There are two parts to this:
 #Recording financial data. This is the ‘book-keeping’ part of accounting.
@@ Line 50: / Line 50: @@
 This records the money in (revenue) and out (costs) of the business as a result of the business’ ‘trading’ i.e. buying and selling. This might be buying raw materials and selling finished goods; it might be buying goods wholesale and selling them retail. The figure at the end of this section is the Gross Profit.
-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The[[Profit and Loss Account]] proper
+&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The&nbsp;[[Profit and Loss Account]]&nbsp;
 This starts with the Gross Profit and adds to it any further costs and revenues, including overheads. These further costs and revenues are from any other activities not directly related to trading. An example is income received from investments.
@@ Line 56: / Line 56: @@
 Uses of the [[Profit and Loss Report]].
-*The main use is to monitor and measure profit, as discussed above. This assumes that the information recording is accurate. Significant problems can arise if the information is inaccurate, either through incompetence or deliberate fraud.
+*The main use is to monitor and measure profit, as discussed above. This assumes that the information recorded is accurate. Significant problems can arise if the information is inaccurate, either through incompetence or deliberate fraud.
-*Once the profit(loss) has been accurately calculated, this can then be used for comparison i.e. judging how well the business is doing compared to itself in the past, compared to the managers’ plans and compared to other businesses.
+*Once the profit/loss has been accurately calculated, this can then be used for comparison i.e. judging how well the business is doing compared to itself in the past, compared to the managers’ plans and compared to other businesses.
 ==== How to use the Profit and Loss Report  ====
@@ Line 63: / Line 63: @@
 Click on the [[Account]]s Tab
-Select the [[Profit and Loss]] Button and the P&amp;L Report will display.
+Select the [[Profit_and_Loss]] Button and the P&amp;L Report will display.
 ==== Selecting by Department  ====
@@ Line 77: / Line 77: @@
 Three options can be selected using the Radio Buttons to Exclude Tax, Include Tax and Both
-The default setting in ERP is to "Exclude Tax" in the headings each of the columns for each Department and Total Amounts the suffix (EX) is displayed.
+The default setting in ERP is to "Exclude Tax" in the headings so in each of the columns for each Department and Total Amounts the suffix (EX) is displayed.
-Selecting the radio button to "Includes Tax" in the headings each of the columns for each Department and Total Amounts the <br>suffix (INC) is displayed.
+Selecting the radio button to "Includes Tax" ensures that in the headings of each of the columns for each Department and Total Amounts the&nbsp;suffix (INC) is displayed.
-Selecting the radio button for "Both", all of the columns for both (EX) and (INC) is displayed for each Department and the Total Amounts
+Select the radio button for "Both", and all of the columns for both (EX) and (INC) is displayed for each Department and the Total Amounts
 ==== Refresh  ====
 If other Users are creating transactions within ERP you can use the refresh button to update the P&amp;L Report to display <br><br>

@@ Line 42: / Line 42: @@
 #Paid as tax.
-Parts of the [[Profit and Loss]] Report
+Parts of the [[Profit_and_Loss]] Report
-The [[Profit &amp; Loss Report]] aims to monitor profit. It has two parts.
+The [[Profit & Loss Report]] aims to monitor profit. It has two parts.
 &nbsp;&nbsp;&nbsp;&nbsp; 1. The Trading Account.
@@ Line 50: / Line 50: @@
 This records the money in (revenue) and out (costs) of the business as a result of the business’ ‘trading’ i.e. buying and selling. This might be buying raw materials and selling finished goods; it might be buying goods wholesale and selling them retail. The figure at the end of this section is the Gross Profit.
-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The[[ Profit and Loss Account]] proper
+&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The[[Profit and Loss Account]] proper
 This starts with the Gross Profit and adds to it any further costs and revenues, including overheads. These further costs and revenues are from any other activities not directly related to trading. An example is income received from investments.

@@ Line 1: / Line 1: @@
-<menu name=myMenu align=center>
+<menu align="center" name="myMenu">
 More Detail=
 [[Account]]
@@ Line 19: / Line 19: @@
 [[Transaction Journal]]
 [[Trial Balance]]
 </menu>
 == '''Overview'''  ==
@@ Line 42: / Line 42: @@
 #Paid as tax.
-Parts of the Profit and Loss Report
+Parts of the [[Profit and Loss]] Report
-The Profit &amp; Loss Report aims to monitor profit. It has two parts.
+The [[Profit &amp; Loss Report]] aims to monitor profit. It has two parts.
 &nbsp;&nbsp;&nbsp;&nbsp; 1. The Trading Account.
@@ Line 50: / Line 50: @@
 This records the money in (revenue) and out (costs) of the business as a result of the business’ ‘trading’ i.e. buying and selling. This might be buying raw materials and selling finished goods; it might be buying goods wholesale and selling them retail. The figure at the end of this section is the Gross Profit.
-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The Profit and Loss Account proper
+&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The[[ Profit and Loss Account]] proper
 This starts with the Gross Profit and adds to it any further costs and revenues, including overheads. These further costs and revenues are from any other activities not directly related to trading. An example is income received from investments.
-Uses of the Profit and Loss Report.
+Uses of the [[Profit and Loss Report]].
 *The main use is to monitor and measure profit, as discussed above. This assumes that the information recording is accurate. Significant problems can arise if the information is inaccurate, either through incompetence or deliberate fraud.
@@ Line 61: / Line 61: @@
 ==== How to use the Profit and Loss Report  ====
-Click on the Accounts Tab
+Click on the [[Account]]s Tab
-Select the Profit and Loss Button and the P&amp;L Report will display.
+Select the [[Profit and Loss]] Button and the P&amp;L Report will display.
 ==== Selecting by Department  ====
-Set the Profit and Loss Report by Department
+Set the [[Profit and Loss Report]] by Department
 Select the Department required from the drop down menu<br>Select All Departments by ticking the "All" box. You will notice that each department has been added as a separate column to the P&amp;L Report. And the P&amp;L now displays all departments from the drop down list.

@@ Line 23: / Line 23: @@
 == '''Overview'''  ==
-==== '''Introduction to the Profit and Loss (P&amp;L) Report''' ====
+==== '''Introduction to the Profit and Loss (P&amp;L) Report'''  ====
 The Task of Accounting is Measuring and Reporting Profit i.e. being accountable
@@ Line 33: / Line 33: @@
 So monitoring profit also means monitoring and measuring revenue and costs. There are two parts to this:-
 #Recording financial data. This is the ‘book-keeping’ part of accounting.
 #Measuring the result. This is the ‘financial’ part of accounting. If we say ‘profits are high’ this begs the question ‘high compared to what?’ (You can look at this idea in more detail when covering Ratio Analysis)
 Profits are ‘spent’ in three ways.
 #Retained for future investment and growth.
-#Returned to owners eg a ‘dividend’.
+#Returned to owners e.g. a ‘dividend’.
 #Paid as tax.
@@ Line 48: / Line 48: @@
 &nbsp;&nbsp;&nbsp;&nbsp; 1. The Trading Account.
 This records the money in (revenue) and out (costs) of the business as a result of the business’ ‘trading’ i.e. buying and selling. This might be buying raw materials and selling finished goods; it might be buying goods wholesale and selling them retail. The figure at the end of this section is the Gross Profit.
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The Profit and Loss Account proper
@@ Line 56: / Line 56: @@
 Uses of the Profit and Loss Report.
 *The main use is to monitor and measure profit, as discussed above. This assumes that the information recording is accurate. Significant problems can arise if the information is inaccurate, either through incompetence or deliberate fraud.
 *Once the profit(loss) has been accurately calculated, this can then be used for comparison i.e. judging how well the business is doing compared to itself in the past, compared to the managers’ plans and compared to other businesses.

← Older revision		Revision as of 19:58, 14 February 2011
Line 21:		Line 21:
	</menu>		</menu>

−	== '''Overview''' ==	+	== '''Overview''' ==
		+
		+	==== '''Introduction to the Profit and Loss (P&L) Report''' ====
		+
		+	The Task of Accounting is Measuring and Reporting Profit i.e. being accountable
		+
		+	The main task of accounts, is to monitor and measure profits.
		+
		+	Profit = Revenue less Costs
		+
		+	So monitoring profit also means monitoring and measuring revenue and costs. There are two parts to this:-
		+
		+	#Recording financial data. This is the ‘book-keeping’ part of accounting.
		+	#Measuring the result. This is the ‘financial’ part of accounting. If we say ‘profits are high’ this begs the question ‘high compared to what?’ (You can look at this idea in more detail when covering Ratio Analysis)
		+
		+	Profits are ‘spent’ in three ways.
		+
		+	#Retained for future investment and growth.
		+	#Returned to owners eg a ‘dividend’.
		+	#Paid as tax.
		+
		+	Parts of the Profit and Loss Report
		+
		+	The Profit & Loss Report aims to monitor profit. It has two parts.
		+
		+	1. The Trading Account.
		+
		+	This records the money in (revenue) and out (costs) of the business as a result of the business’ ‘trading’ i.e. buying and selling. This might be buying raw materials and selling finished goods; it might be buying goods wholesale and selling them retail. The figure at the end of this section is the Gross Profit.
		+
		+	2. The Profit and Loss Account proper
		+
		+	This starts with the Gross Profit and adds to it any further costs and revenues, including overheads. These further costs and revenues are from any other activities not directly related to trading. An example is income received from investments.
		+
		+	Uses of the Profit and Loss Report.
		+
		+	*The main use is to monitor and measure profit, as discussed above. This assumes that the information recording is accurate. Significant problems can arise if the information is inaccurate, either through incompetence or deliberate fraud.
		+	*Once the profit(loss) has been accurately calculated, this can then be used for comparison i.e. judging how well the business is doing compared to itself in the past, compared to the managers’ plans and compared to other businesses.
		+
		+	==== How to use the Profit and Loss Report ====
		+
		+	Click on the Accounts Tab
		+
		+	Select the Profit and Loss Button and the P&L Report will display.
		+
		+	==== Selecting by Department ====
		+
		+	Set the Profit and Loss Report by Department
		+
		+	Select the Department required from the drop down menu<br>Select All Departments by ticking the "All" box. You will notice that each department has been added as a separate column to the P&L Report. And the P&L now displays all departments from the drop down list.
		+
		+	The Total Amount column will always display regardless of the selection of Departments.
		+
		+	==== Using the Radio Button Options ====
		+
		+	Three options can be selected using the Radio Buttons to Exclude Tax, Include Tax and Both
		+
		+	The default setting in ERP is to "Exclude Tax" in the headings each of the columns for each Department and Total Amounts the suffix (EX) is displayed.
		+
		+	Selecting the radio button to "Includes Tax" in the headings each of the columns for each Department and Total Amounts the <br>suffix (INC) is displayed.
		+
		+	Selecting the radio button for "Both", all of the columns for both (EX) and (INC) is displayed for each Department and the Total Amounts
		+
		+	==== Refresh ====
		+
		+	If other Users are creating transactions within ERP you can use the refresh button to update the P&L Report to display <br><br>