Profit & Loss (Income Statement)

Confirm the period you want to review. Only posted accounting activity contributes.

1. 1
   Open Reports and select Profit & Loss.
2. 2
   Use Filter by date and All Currencies, then click Search.
3. 3
   Compare revenue, cost of goods sold, and expenses.
4. 4
   Open an unusual revenue or expense account in General Ledger and identify the source invoice, shipment, or journal.
5. 5
   Compare the same period with Sales Tax and inventory valuation only where those reports answer the specific question you are investigating.

Gross profit is revenue less cost of goods sold; other expenses then affect the final result. A shipment can recognize cost before its draft invoice is posted.

Fulfillment cost and invoice revenue can occur on different dates. Compare the same cutoff before interpreting gross margin.

WARNING: Do not infer cash flow from profit. Review payments and the cash-flow report separately.

Compare unusual revenue or expense lines with their posted source documents before presenting the result.

Check unposted invoices and shipment timing before treating a low margin as a pricing problem.