Hi… I have a few days back noticed that in summary tax is also included as profit. Lets say my total sales is Rs. 2,500,000/- (including 7.5% Tax), that means my total sales actually is Rs. 2,312,500/-. While my expensis are Rs. 2,100,000/- then the profit should be Rs. 212,500/- (as Manager used to calculate before). But now its showing Rs. 400,000/- as profit which is unsensible. Tax is not profit.
I am sure I am making sense here but this is somehting Manager used to consider. Please let me know how to handle this.
If your sales total of Rs. 2,500,000 includes 7.5% tax, your actual sales income would be 2,325,581, with tax of 174,419. That is because on tax-inclusive sales, Manager calculates what the sale amount would have been so that when the tax is added to it, the total amount is the given figure. In this case, your profit should be 225,581.
On a tax-exclusive sale of 2,312,500, the total amount with tax would be 2,485,937.5. In this case, your profit should be 212,500, as you apparently believe is correct. But your total invoice amount is wrong.
You were not clear in your post as to whether these figures are for a single transaction or many transactions. I assure you, though, that if your entries were made correctly, Manager performs its arithmetic correctly. So to resolve your problem, we need to see the relevant entries.