Hi, I’m using desktop version 24.7.15.1733. Before upgrading to this version my net profit was 90k but after upgrading, the net profit amount increased to 190k. What caused this sudden change?
Maybe your problem is related to Inventory.
I feel like everything related to Inventory is becoming more complicated to understand.
For new business data, we may need to restructure the proper procedures for working with Inventory. And for legacy business data, we need to trial and error to get the reports the way they should be.
Maybe you need to check this setting
Settings - Obsolete Features - Inventory Automatic Revaluation
No, it is not. I have tried disabling inventory automatic revaluation option, the net profit/loss amount increased to 400k after disabling. So I have enabled it again & the amount came back to 190k which was 90k in the previous version. I have no clue whether to believe anything of this software now.
How can I make decisions if my P&L amount is wrong.
Try this. If not solved by this, then check every sale and expense transaction. Look for any issues.
Like I said before, the new version changed the P&L amount. I have noticed one thing they removed the starting inventory of every inventory item. Probably this has caused the issue.
Go to Journal Entry and check for this transaction. It is automatically created to include all the starting balances. So starting balance isnt an issue here.
You havent provided any detail information just claiming your figures have changed. From your above post looks like you have updated after a few months. You need to furnish more details to help members find origin of issue.
Further i would suggest check history if someone has changed any transaction because this issue is unique to you.
- Is there anything in the Suspense account?
- Net Profit/Loss is a result of Income - Expenses. So what changed there?
I just gave up. I don’t know what is the problem. I think the balances of inventory must have changed. I don’t look at balances of inventory everyday, I think I’m gonna just live with this fact now that this is the new P&L amount.
You should at least ensure that there are no entries in the Suspense Account. See https://www2.manager.io/guides/7106
Specifically:
Any balance in Suspense signals a problem. Never attempt to clear the Suspense account with a journal entry. That only hides problems and usually makes both your Balance Sheet and Profit and Loss Statement inaccurate. Problems that caused transactions to post to Suspense must be identified and corrected.
If this happens to the P/L, it is easier to open two different versions of Manager to compare what account values changed, and then check what transaction caused the change.
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There’s nothing in suspense account.
I don’t remember which version I was using last.
If you were using multiple currencies. Check the currency exchange rate, previously you could just put one base rate for that currency in “foreign currencies” in setting. Now you have to exchange it in “Exchange Rate” tab and select the date of that specific rate of the currency. it will change the revaluation from that selected date (this will affect the P&L if it is not updated).
if this is still not your issue then create a P&L report on monthly bases and analyze where that change has occurred.
I’m pretty sure it is an investment that is now showing in the P&L at a market price that I had entered.
The current implementation of Investments is not usable.
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In the past it tracked the realised gains / losses as well as the unrealised gains / losses (the manual equivalent illustrated here Investments unexpected behaviour - #4 by Patch)
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Now only unrealised gains are shown as realised gains completely obscuring the actual investment transactions a business has made After auto-updating, the hyperlinks in INVESTMENTS section are inactive - #9 by Patch
Currently the only solution is to treat investments as Fixed assets in Manager and manually enter the realised and unrealised gains / losses
The alternative to reverting to using Fixed assets for investments is to use Manager versions after v24.05.10.1523 and before 24.6.8.1635 which does handle realised and unrealised gains/losses.
The only issue with that implementation as most investors would want to minimised realised gains (maximising unrealised gain) to minimise capital gains tax when selling some of the investments. This involves selling the investments purchased at the highest price first. A strategy not supported by Manager atm.
https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/shares-and-similar-investments/keeping-records-of-shares-and-units