The P&L Statement provides a detailed summary of all business-related transactions, helping you track revenue, expenses, and overall profitability. Below is a breakdown of the key components included in the report:
The results will be displayed based on the selected date range, and all calculations exclude tax amounts.
- Sales & Purchases Overview
-Sales (Excluding Tax) (+) → Total sales amount from all invoices, excluding tax.
-Sales Returns (Excluding Tax) (-) → Total amount of all sales returns, excluding tax.
- Purchases (Excluding Tax) (-) → Total amount spent on all purchase invoices, excluding tax.
- Purchase Returns (Excluding Tax) (+) → Total value of returned purchases, excluding tax.
- Gross Profit Calculation
Formula:
Gross Profit = Sales - Sales Returns - Purchases + Purchase Returns
This gives a direct view of the profit generated before considering other expenses or incomes.
- Indirect Income & Expenses
Indirect Income (Excluding Tax) (+) → Sum of all additional income sources, excluding tax (e.g., rental income, interest earned).
- Indirect Expenses (Excluding Tax) (-) → Sum of all business expenses, excluding tax (e.g., rent, salaries, office expenses).
- Net Profit Calculation
Formula:
Net Profit = Gross Profit - Indirect Expenses + Indirect Income
This represents the final profit after considering indirect income and expenses.
The P&L Statement helps businesses analyze their financial performance, identify profit trends, and make informed financial decisions.
