Hello guys, good day to you all.
I downloaded the evaluation copy of Manager (server edition) for testing, and hoping to buy a license once it sufficiently meets my demand.
I simply tested with a case study below:
Excellence Ltd is a Gas Station that sells only petrol & diesel via pumps. It is assumed the business just commenced, therefore all account balances and inventory balances are zero and all business assets are summed up into Fixed Asset = N45,000,000 and Cash in Bank = N10,000,000.
I setup a purchase order for 33,000 litres of petrol at N135/litre. Haulage and loading fee are N70,000 and N30,000 respectively. That makes my cost price N138.03. I subsequently copied these to purchase invoice and used the ‘Spend Money’ option to pay for the product from a Cash Account I already setup and funded.
Having made payment, I record the stock in the Inventory items using N138.03 as cost price and N150.00 as sales price. Quantity on hand = 33,000 ltrs and Average Cost = N138.03.
Just for testing, I sold off the entire stock using ‘Sales Invoice’ obviously at N150.00 sales price so that Inventory item is now = 0 litre.
Ideally, this simple transaction and operation is supposed to yield a Net Profit of N395,000 (assuming no expenses were incurred), but why are my having a Net Loss of N4,160,000.
Please, can anyone assist with clarification as to why I have this P&L statement reading Net Loss?