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Profit and Loss Account
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Last modified on 27/12/2016 23:53 by User.

Profit and Loss Account

There are two basic formats

  • Limited Company
    • Includes section on Taxation, Dividends and Retained profit
  • Partnership.
    • Includes a Profit Share section

The P&L Account is split into six sections. Turnover, Cost Of Sales, Administrative Expenses;  Other Income Other Expenses and for Partnerships, a Profit Share section.

Each Section can be setup to have different costs centre / type of income / type of expenditure. There are two type of entries under each section.

a - User Entered Values (Eg. Opening Stock)

These are shown as the shaded lines and allow the user to enter a value directly into the profit and loss account.

Please note that you should only enter User Values for completed quarters and not the current quarter. The systemwill overwrite with 0 for partial quarters

b - System Generated Values (eg. Delivery Charges)

These are shown without any background shading and are calculated automatically from the income and expenditure information input into the system 

You can configure which entries go into each section as follows:-

The P&L report is split into four quarters, with a Year to date total 

Note: The Year to date figure is the sum of the values for each quarter EXCEPT for Opening and Closing Stock.

The Year to Date Opening stock is the figure in Quarter 1 and the Year to Date Closing Stock is the last Quarter 4 with a value in the Closing Stock cell.

Enter Opening Stock as a Positive Figure and the Closing Stock as a Negative Number

The dates are taken from the Financial Dates settings

 

1. Section 1 (Code PLSECTION1) - Turnover

    Ensure that any Income categories (Parameter Type 15) have their Text Block field set to PLSECTION1. Any income categories that should be excluded from the P&L should have their Text Block field left blank.

1. Section 2 (Code PLSECTION2) - Cost Of Sales

User Entries are set up using the System Parameters Code 45.

If you need to include the Opening & Closing Stock in your P&L, these sections must be the first two entries in this section. 

 

The ID is just a sequential number and must be unique within the Code 45 parameters.

The Sub ID is the code for the User Entry. If you want to have Opening and Closing Stock entries, then these must be PLOPSTOCK and PLCLSTOCK.  For others, they can be anything that makes sense to you. For easy identification, we recommend that they start with PL. Eg. PLINTREC for Interest Received. Again, it must be unique within the Code 45 parameters.

If you set up a User Entry type without entering a Sub ID, then the following message will be displayed when trying to open the Profit and Loss form

Please go to Tools -> Maintain System Parameters and update the Code 45 parameter to add a unique value.

In the image below you might set the Sub ID to PLMISC for example.

System generated entries are set up using the System Parameters Code 16 (Expenditure Cost Centres). Any Cost Centres  that should be excluded from the P&L should have their Text Block field left blank.

 

If you accidentally set up a Cost Centre to be calculated automatically (by updating the Code 16 parameters) and also  set it up as a user manual entry, the following message will be displayed when opening the Profit and Loss screen

Please go to Tools -> Maintain System Parameters and update the Code 45 or the Code 16 parameter to remove it 

In the example shown below,  PAYE has been set up as an automatic and manual entry. Edit the Text Block and Remove PLSECTION3 from the Record Type 16 or Delete the Code 45 record (by pressing CTRL and DEL keys after the row has been highlighted)

3. Section 3 (Code PLSECTION3) - Administrative Expenses

4. Section 4 (Code PLSECTION4) - Other Income

    Eg. Bank Interest Received

5. Section 5 (Code PLSECTION5) - Other Expenses

    Eg. Bank Interest Paid

6. Section 6 (Code PLSECTION6) - Profit Share

    This is only needed for Partnerships

 

Following User Entries (Type 45 Must be present)

1 - Opening Stock

2 - Closing Stock

3- Bank Interest Received

4 - Bank Interest Paid

5 - Depreciation

 

 

Sample SQL to Insert Some user Entries

INSERT INTO [dbo].[Parameter]
           ([ParameterCode]
           ,[ParameterID]
           ,[ParameterSubID]
           ,[ParmChar]
           ,[LastUpdatedTime]
           ,[LastUpdatedUser]
           ,[ParmText])
     VALUES
           (45
           ,'1'
           ,'PLOPSTOCK'
           ,'Opening Stock'
           ,GETDATE()
           ,'Admin'
           ,'PLSECTION2')


           INSERT INTO [dbo].[Parameter]
           ([ParameterCode]
           ,[ParameterID]
           ,[ParameterSubID]
           ,[ParmChar]
           ,[LastUpdatedTime]
           ,[LastUpdatedUser]
           ,[ParmText])
     VALUES
           (45
           ,'2'
           ,'PLCLSTOCK'
           ,'Closing Stock'
           ,GETDATE()
           ,'Admin'
           ,'PLSECTION2')

                  INSERT INTO [dbo].[Parameter]
           ([ParameterCode]
           ,[ParameterID]
           ,[ParameterSubID]
           ,[ParmChar]
           ,[LastUpdatedTime]
           ,[LastUpdatedUser]
           ,[ParmText])
     VALUES
           (45
           ,'3'
           ,'PLINTREC'
           ,'Bank Interest Received'
           ,GETDATE()
           ,'Admin'
           ,'PLSECTION4')

                  INSERT INTO [dbo].[Parameter]
           ([ParameterCode]
           ,[ParameterID]
           ,[ParameterSubID]
           ,[ParmChar]
           ,[LastUpdatedTime]
           ,[LastUpdatedUser]
           ,[ParmText])
     VALUES
           (45
           ,'4'
           ,'PLINTPAID'
           ,'Bank Interest Paid'
           ,GETDATE()
           ,'Admin'
           ,'PLSECTION3')

                  INSERT INTO [dbo].[Parameter]
           ([ParameterCode]
           ,[ParameterID]
           ,[ParameterSubID]
           ,[ParmChar]
           ,[LastUpdatedTime]
           ,[LastUpdatedUser]
           ,[ParmText])
     VALUES
           (45
           ,'5'
           ,'PLDEPREC'
           ,'Depreciation'
           ,GETDATE()
           ,'Admin'
           ,'PLSECTION3')