Does QF allow the ability to categorise an income or expense as below the line income/expense i.e. an income or expense which do not affect core profitability? I checked out the nominal ledger setup and the P&L report which only shows Turnover, Costs of Sales and Expenses.
Thanks in advance
I’m not sure what you mean by this?
Do you have an example?
Where would you want it show on the report?
Thanks for this and yes, the example is that my existing system allows 5 areas in the P&L: 1) Turnover2) Cost of Sales (giving Gross Profit) and then 3) Expenses (giving net Ordinary Income) followed by two further areas 4) Other Income 5) Other Expenses (giving Net Other Income) followed by a final Net Income figure. The Chart of Accounts facility allows one to allocate nominal ledger numbers for those and indeed for sub-categories in the same way as QF does for its major areas.
In case my explanation is not clear the following may work:
Below the line refers to line items in the income statement that do not directly impact a firm’s reported profits. A firm may classify certain expenditures as being capital expenditures, thereby pushing them below the line by shifting them from the income statement to the balance sheet.19 Feb 2022
Below the line definition - AccountingTools
https://www.accountingtools.com › articles › belo
What are above the line items?
Definition: The “line” generally refers to gross profit. Above that line on the income statement, typically, are sales and COGS (cost of goods sold) or COS (cost of sales or cost of services). Below the line are operating expenses, interest, and taxes.
Above the Line, Below the Line Financial Concept
We do not currently offer this in QuickFile but we can look into it.
I have marked this post as a Feature Request so other users can vote on it.
If possible can you post an example image for me to pass on to the development team.
(example only please do not post sensitive information).
Thanks for this and I’ll look to produce an anodyne sample in the next day or so.
Thought that if I didn’t do it quickly I would never so here it is
Total Income 100
Cost of Goods Sold
Total COGS 50
Gross Profit 50
Total Expense 10
Net Ordinary Income 40
Other Income 15
Total Other Income 15
Other Expenses 10
Total Other Expenses 10
Net Other Income 5
Net Income 35
Accrual Basis April 2021 through March 2022