How to show Gross Profit?

[Zohair]

Give us a step by step guide to develop a COST OF GOODS SOLD section in our profit and loss statement and make sure that it reflects all below figures:

1. Opening inventory
2. add: Purchases
3. less: Closing Inventory
4. Cost of Goods Sold

Hence, Revenue - cost of goods sold = gross profit

[shahabb]

This was done a few weeks ago but many users had issues with it. Now it shows COGS incurred by each Invoice.
I think Inventory Value Summary report would work.

[eko]

You could also consider changing the Chart of Accounts in settings so it looks as below:

Thus in Chart of Accounts

1. Create a New Group “Income from Sales” (or whatever name you prefer)
2. Create a New Group “Cost of Goods sold” (or whatever name you prefer)
3. Create a Total “Goss Margin/Profit” (or whatever name you prefer)
4. Reorder them using the Arrow screen so that they show as in the screenshot.
5. Assign any relevant Income accounts to Income from Sales Group, for example:
   
   
6. Do the same for Cost of Goods sold. The resulting Chart of Accounts in Settings would look something like:
   
   
7. The summary screen would look like:
   
   
8. In Profit and Loss report: