DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Income and Expenditure


#1

Please can someone help me by explaining me how it is possible to create the Income and Expenditure including purchases as well? Thanks in advance


#2

Just read the Guide.


#3

Sorry but how this is supposed to help me out “Reports tab contains collection of all reports you can print from Manager. Reports will be visible or hidden based on what tabs you have enabled.” This is copied from the Guide as suggested.


#4

There are many, many pages to the Guides, not just what you quoted. I suggest reading more detailed information. Then, if you have a specific question, ask it in as much detail as possible. What you have asked is too broad and too vague for anyone to offer help.


#5

The business financial year is going to end soon and manager can produce in detail all the profits and losses incurred during the year. Although that manager can produce a very detailed analysis, it does not include the purchase invoices as an expense in the statement of profit or loss. This is the major expense for the business and therefore it has to be included in the P&L. I tried out to add it and also I have searched in the forum and also in the Guides but I did not find anything. Please, can you or anyone help me and explain how can I add the purchases in the P&L expenses? Thanks in advance


#6

I believe you misunderstand the use of purchase invoices and the standard accounting reports. A purchase invoice records an obligation to pay a supplier at some time in the future, thus creating an account payable, which is a liability account. In double entry accounting, the offsetting entry goes to some expense account appropriate to the transaction. The expense, therefore, appears in the expense account, not some listing of purchase invoices. A sales invoice does the reverse; that is, a customer owes you money, with an offsetting entry in an income account. Accordingly, neither type of invoice appears in the Profit and Loss Statement.

As an example, suppose a supplier ships you office supplies worth 500 in your currency, on 30 days net terms. They send you an accompanying sales invoice, which you enter as a purchase invoice (sale for them, purchase for you). This is equivalent to the following:

  • Debit Office supplies expense account: 500
  • Credit Accounts payable liability account: 500

The expense account entry would be reflected in the P&L statement. The account payable would be reflected on the balance sheet. If you have not been allocating purchase invoices to expense accounts when you enter them, I suspect you will have a large balance in your Suspense account, which should be zero. Suspense is where Manager places incorrect transactions.

The Guides do not teach double-entry accounting. They only cover how to use the program and assume you know about double-entry accounting. I recommend http://www.accountingcoach.com. Read his basic material on the accounting equation first; then search for your specific topics. And please don’t think of this as a flaw in Manager. Double-entry accounting does not have to be terribly complex, but it is unforgiving. Manager actually helps you avoid many problems, but cannot substitute for basic knowledge.


#7

Thanks for the feed back