Run the Profit & Loss report
See revenue, expenses and net profit for any date range.
The Profit & Loss report (also called an income statement) shows how much you earned and spent over a period. Open Accounts > Reports > Profit & Loss or go to Profit & Loss. It needs access to Reports.
Steps
- Set From and To. They start as 1 January of this year and today.
- Click Run Report.
What you see
- Three cards: Revenue, Expenses and Net Profit.
- A Revenue table listing each income account (for example 4000 - Sales Revenue) with its amount, and Total Revenue.
- An Expenses table listing each expense account (for example 5000 - Cost of Goods Sold, 5900 - General Expenses) with its amount, and Total Expenses.
Net Profit is Total Revenue minus Total Expenses.
How the numbers are built
- Only posted entries dated between your two dates count. Drafts and voided documents are left out.
- Revenue accounts are shown as credits less debits; expense accounts as debits less credits. An account that nets to zero is not listed.
- Sales Returns (from credit notes) is an income account that works against revenue, so it appears as a negative amount in the Revenue table. Purchase Returns (from debit notes) works against expenses in the same way.
- Revenue is before tax. Tax collected goes to tax payable accounts, which are balance sheet accounts and never appear here.
- Cost of goods sold is booked when an invoice with stock items is posted, using the item's purchase price.
- Expenses and other income you record on the Expenses & Other Income page appear under General Expenses and Uncategorized Income. Manual journal entries to income or expense accounts are included too.
Good to know
- A bill for a stocked item does not reduce profit when you post it. The cost moves into Inventory and reaches the Profit & Loss as cost of goods sold when you sell it. A bill for a service or a custom line goes straight to General Expenses.
- If your role is restricted to certain branches, the figures cover those branches only, and a notice says so.
- The report starts and ends on the dates you choose. It does not need a financial year to be set up.
- To see what is behind a line, open that account's ledger.