Differences between purchases and deducted expenses

[JoePearce]

Hi,

When I carry out a report to show my profit for the year it states a certain amount for expenses but when I select purchases during the same time period it is more than what has been deducted from the income. Just wondering why that is?

Thanks.

Joe

[Glenn]

If you’re referring to the Profit and Loss report, this breaks down all outgoing by “Cost of Sales” and “Expenses”, this is dependent on the nominal code. A purchase invoice can post to either a Cost of Sale code or Expense code, are you including the cost of sales when comparing against the total of all purchase invoices?

Also are you including any journals, you can journal to any of these codes without posting to an invoice?

[JoePearce]

Hi,

Yes when I do a profit loss report the cost of sales and expenses don’t add up to the same amount of purchases for the same time period. No I’m not using any journals. Could you tell me why this would be the case?

Thanks

[ian_roberts]

If any of your purchases were assigned to one of the “[Asset]” nominal codes such as office equipment then those will go onto the balance sheet rather than the P&L.

[Glenn]

As @ian_roberts mentions you can also post purchases to asset codes (0-2999), these wouldn’t appear on the P&L at all but on the balance sheet.

That said I just had a quick look at your account, I set the date range as follows on both the P&L and the purchase list and they both matched to the penny.

06/04/2014 to 05/04/2015