DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Why retain profit & net profit doesn't show the real amount


#1

i buy the goods at RM1618.39 and i sold at RM1747, but why the retain profit & ner profit still show the RM1747?

i hope you understand what i mean here. Doesn’t the net profit should be RM128.61 reflected on the net profit side?

Thanks.


#2

You have not correctly allocated the purchased goods to an expense account. Review the purchase transaction and make sure it is allocated to an expense account and all fields are completed.


#3

hi tony, sorry i dont understand what u mean? i open the purchase inv and put the account into the purchase column. am i right?


#4

If you can post a screenshot of your full Trial Balance it will help to pinpoint the accounting error.


#5

You have your 1689 as a liability instead of an expense. This is why its not showing your profit correctly. I assume that your purchases account has been setup as a liability account instead of an expense account.

If you are buying and selling goods - is there some reason why you are not using the inventory on hand and sales on inventory accounts as this is a far better way to manage cost of sales and sales on goods.


#6


#7

The account Purchases you are using is a liability account. You need to create an expense account called purchases if you want it to show under expenses.