Profit and Loss Statement

The Profit and Loss Statement answers the owner's question: did the business earn money this period? BRAccount sums the GL Entry rows on every Income and Expense account between From Date and To Date, and Periodicity Monthly gives one column per month so a weak month stands out. The net profit is the starting point for the annual income tax return, so it must be clean before the return is prepared. Balance sheet accounts never appear here, and after a Period Closing Voucher a closed year shows zero unless you filter by that Fiscal Year. Booking cash received as income without an invoice, or expensing a laptop instead of capitalising it, distorts the result.

Net Profit = Total Income - Total Expenses, summed from GL Entry on Income and Expense accounts between From Date and To Date

1. 01Go to Financial Reports > Profit and Loss Statement.
2. 02Set Company, Fiscal Year 2083-2084 and Periodicity Monthly to see one column per month.
3. 03Optionally set Cost Center to Marketing - YFF to see one department only.
4. 04Read Total Income: the demo shows Rs 64,000 of sales under Sale of Goods.
5. 05Read Total Expenses, including Depreciation - Property, Plant and Equipment at Rs 1,235.54 a month.
6. 06Net Profit at the bottom is Income less Expenses; click any figure to drill into the General Ledger.
7. 07Export with Menu > Export and keep it with the monthly close papers for six years.

Open at month end or fiscal year end to answer: did we make a profit this period?

Revenue this year Rs 64,000 against expenses that include monthly depreciation of Rs 1,235.54.