Why is Current Profit/Loss at Balance Sheet different from Profit/Loss report
Commonly when there is a difference in the P&L and BS this usually indicates that
- Year end closing was not done for a period. (note this may apply to multiple periods)
- Adjustments were made after year end closing was done. ( note this also can apply cross multiple periods)
The guide below show you how to list the year end closing done.
if the issue was cause by Year end closing(YEC) not being done for a FY, you can use the YEC module to do the closing.
The guide below shows you how to check for adjustment
if the FY has adjustments after the YEC was done, you can do the YEC process again to post the adjustments.
Below is a more detailed explanation on the how the report values are taken.
The balance sheet P&L is base follows the date range of the BS module.
this date range is "as at". this mean that the P&L values in the Balance Sheet is using as at.
the P&L module is using a "period" date range. the range of values being looked at is different.
you can review the difference in the date range from the link below.
Related Articles
Year End Closing / Check
Print Report Print the Profit & loss report Location Adjustment > Closings > Year End Closing Action > Click on REPORT > Click on FINANCIAL > Click on PROFIT/LOSS > Enter your period date > Click REFRESH Remark Total Revenue - Total Cost - Total ...
How to do Year End Closing?
Preparation The main purpose of Year End Closing process is to move the Profit/Loss amount incurred over the Financial Year (stored in Expense, Cost & Income accounts) to the Retained Earnings account. Ensure that all previous Financial Periods have ...
Year End Closing / Post
Post the year end closing module Location Adjustment > Closings > Year End Closing Action > Click on POST > Click on YES Remark Note that the system has calculated the amount to b/f to Balance Sheet at “Total (Current Period)” and the “Total ...
Adjustments after Year End Closing
Your auditor might ask you to generate Financial Reports and make audit adjustments post-YEC (Year End Closing). In that case, use Journal Entry and/or Stock Adjustment modules to make adjustments. With adjustments made, there might be outstanding ...
Year End Closing / Verify
Generate the year end closing module VERIFY Location Adjustment > Closings > Year End Closing Action > Click on ADJUSTMENT > Click on CLOSINGS > Click on YEAR END CLOSING > Select the Financial Period for closing. Note that the period for the closing ...