‘Cost of sales’ in profit and loss statement versus ‘cost of sales’ in MIS

A2000 ONLINE SUPPORT DEPARTMENT

KNOWLEDGE BASE

 Question: In Profit and loss statement, cost of sales versus cost of sales MIS analysis is not tie in a month, why?

Answer:

There are several reasons ‘cost of sales’ on both reports, do not tie because:

• Recalculation on product cost is not executed,
• There are GJ passed on cost of sales [GL listing],
• If you are using the transaction types = CY, CU and CI
• Please note that this is not "system error", when the basis for comparison is not relevant.

Scenario 1: When a CY is entered on June 2022 and related CI is entered on July 2022.

In this scenario, Profit and loss statement vs MIS Sales Analysis:

The cost of sales from CY reflects on profit and loss on  JUNE 2022. But not in MIS SALES ANALYSIS REPORT.

Note, in mis sales analysis  report, the cost of sales will reflect until the related CI is entered /sales , which will reflect as of  JULY 2022. 

When posted CY on JUNE 2022:

DR Cost of sales

    CR     Stocks

then when posted CI (Invoice) on JULY 2022 :

DR Trade Debtors

      CR  Sales  

So that is where your profit becomes relevant (Sales - Cost of Sales ), to be compared against the MIS Sales Analysis.

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