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KellyWei's avatar
KellyWei
Contributing User
5 years ago

Purchase in Profit and Loss statement

Hi Experts   I have run profit and loss statements under both cash and accural methods. The purchase amount shows a big difference. I checked purchase in find transaction, the frigure there is the ...
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  • Steven_M's avatar
    Steven_M
    5 years ago

    Hi KellyWei 


    If you are in the Find Transactions window it will show you the transaction that is recorded, you would be able to click the arrow of that transaction to see the relevant transaction relating to that. If you want additional information into the accounts and amounts involved in that transaction you can recap it (Edit>>Recap transaction) or depending on the transaction view the transaction in the Transaction Journal.

     

    In terms of the Profit and Loss reporting, if it was me I would be looking at running the Account Transactions [Cash] report and comparing that with the Account Transactions [Accrual] report. These reports will show you the individual transactions against each account. If a transaction is not included on the one report but is on the other it is likely the cause of that difference.

     

     

Steven_M's avatar
Steven_M
Former Staff
5 years ago

Hi KellyWei 


The Profit and Loss [Cash] report will show the amount that has been recorded against the Income, Cost of Sales and Expense accounts on a cash basis i.e. when the payment of that transaction occurs. If you run the Reports>>Accounts>>Small Business Entity>>Account Transactions [Cash] report to show the individual transactions that make up those balances.


In terms of a difference between a Profit and Loss [Accrual] and a Profit and Loss [Cash] report, with most situations, these reports will be different. The reason being that there would be transaction recorded in the previous period but paid in the current period. For example, if you recorded a purchase in August but payment was recorded in September, the Profit and Loss [Accrual] will show that amount August but not in September whereas the Profit and Loss [Cash] will show that amount in September. The difference depends on the amount of the transactions and how many there are that would fall into that bucket. 

Whether you mark an item as an inventoried items is not factored into it, as it would be still reported under the same account regardless of the accounting method used to run that report. 

  • KellyWei's avatar
    KellyWei
    Contributing User
    5 years ago

    thanks Steve

     

    Also when I do find a transaction for 5-1000, there are some figures in credit column.

     

    Wondering where are these credit figures from and what stand for? They are not pruchase returns.

     

    thank you

    • Steven_M's avatar
      Steven_M
      Former Staff
      5 years ago

      Hi KellyWei 


      If you are in the Find Transactions window it will show you the transaction that is recorded, you would be able to click the arrow of that transaction to see the relevant transaction relating to that. If you want additional information into the accounts and amounts involved in that transaction you can recap it (Edit>>Recap transaction) or depending on the transaction view the transaction in the Transaction Journal.

       

      In terms of the Profit and Loss reporting, if it was me I would be looking at running the Account Transactions [Cash] report and comparing that with the Account Transactions [Accrual] report. These reports will show you the individual transactions against each account. If a transaction is not included on the one report but is on the other it is likely the cause of that difference.

       

       

      • KellyWei's avatar
        KellyWei
        Contributing User
        5 years ago

        Thanks Steven, that make sense, I will try

         

  • KellyWei's avatar
    KellyWei
    Contributing User
    5 years ago

    thank you Steven.

     

    I can understand P&L statement under cash and accural must look different, just the difference was big (over 200K) and I cannot locate any transaction which may cause this big difference.

     

    Is there any other cause to it?

     

    thank you

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