Understanding P&L Reports
A Sales Profit and Loss (P&L) Report provides an in-depth view of business profitability by calculating the margin of products added to invoices based on their sales and purchase prices.
All these reports are calculated excluding tax amounts.
1. Sales P&L Report
Overview:
This report calculates the total profit or loss of all products in an invoice by determining the difference between their sales and purchase prices. The calculation excludes taxes and extra discounts.
Key Calculations:
- Profit/Loss Formula: (QTY * (Unit Price after discount - purchase unit price) ) - Discount given on total amount [Extra Discount]
- The “Purchase Price at Sale” refers to the original purchase price when the product was sold.
- Any modifications made to the item in the invoice affect calculations.
Important Notes:
- The report is for informational purposes only.
- Current Purchase Price can be edited from the product page.
2. Sale Items P&L Report
Overview:
This report calculates the profit and loss for each product added to an invoice.
Key Calculations:
- Formula: (QTY * (Unit Price after discount - purchase unit price) )
- Considers discounts applied at the item level.
Important Notes:
- The Purchase Price at Sale remains unchanged unless modified.
- Current Purchase Price is editable.
- Taxes and extra discounts are excluded from calculations.
3. Category-wise P&L Report (Purchase Price)
Overview:
This report organizes net profit and loss by product categories, providing insights into category-based profitability.
Column Descriptions:
- Sale QTY: Quantity of items sold in the selected date range.
- Sale Amount: Total taxable invoice amount for the selected date range.
- Purchase Amount: Purchase cost of sold items (QTY * Purchase Unit Price).
- Net Profit/Loss: (Sale Amount - Purchase Amount)
Important Notes:
- Purchase Price at Sale is fixed unless modified.
- This report is for informational purposes only.
- Taxes and extra discounts are excluded.
4. Customer-wise P&L Report
Overview:
Tracks the number of invoices generated for a specific customer and calculates the net profit/loss across all invoices.
Column Descriptions:
- Total Sale Amount: Total amount paid by the customer.
- Net Profit & Loss: (QTY * (Unit Price with discount - Purchase Unit Price ))
Important Notes:
- Purchase Price at Sale does not change unless modified.
- The report excludes taxes and extra discounts.
5. Item-wise P&L Report (Purchases)
Overview:
Calculates P&L based on stock availability and purchase costs, helping businesses assess stock value and profitability.
Column Descriptions:
- Sale Value: (QTY * Unit Price)
- Purchase Value: (QTY * Unit Price)
- Purchase Return Value: (QTY * Unit Price)
- Sale Return Value: (QTY * Unit Price)
- Average Sale Price: Sales Value / Sales Qty
Average Purchase Price : Purchase Value / Purchase Qty
Average Sale Return Price : Sales Return Value / Sales Return Qty
Average Purchase Return Price : Purchase Return Value / Purchase Return Qty - Margin per Unit: Avg sale price - Average purchase price
- Realized Profit/Loss: Sales Qty * Margin per unit
- Net Profit/Loss: Total Profit/Loss of the item in the selected date range. (Sale Value - Purchase Value - Purchase Return Value + Sale Return Value)
Important Notes:
- Purchase Price at Sale remains unchanged unless modified.
- Current Purchase Price is editable.
- Taxes and extra discounts are excluded.
6. Item-wise P&L Report (Purchase Price)
Overview:
Focuses on profit and loss analysis based on sold quantity and purchase cost.
Column Descriptions:
- Sale QTY: Number of items sold in the date range.
- Sale Amount: Total taxable invoice amount.
- Purchase Amount: Total Purchase amount of the item based on sold qty. [QTY * Purchase Unit Price]
- Net Profit/Loss: Total Profit/Loss of the item in the selected date range. (Sale Amount - Purchase Amount)
Important Notes:
- Purchase Price at Sale remains constant unless modified.
- The report is for informational purposes only.
- Taxes and extra discounts are excluded.