P&L Statement is Incorrect

1

Hi,

I have been using Manager for a couple of years now. I have a trading company where we buy and sell commodities.

All was well, but for the last couple of days, I have been noticing some errors in computation of Profit & Loss.

My P&L is currently showing a net loss of, say USD 10K, Which is correct.

Now when I add a purchase invoice and then the corresponding sales invoice, where I make a profit of say USD 1000, instead of net loss reducing to USD 9K, the net loss is increasing to USD 11K.

When I go into the details, and check, the cost of goods is taken as much higher than my purchase cost and when I check the purchase invoice, the value is correct.

I have some inventory. Is Manager using average price of the inventory ? or is there any LIFO concept involved there ?

Thanks.

Regards,
Ajit

2

Inventory is priced using the average purchase price.

LIFO is not used

3

Thanks @Joe91. I just figured it out. I created a few sales invoices to bring inventory to ZERO and final numbers were as it should be.