SALES ANALYSIS & COGS A/C NOT TYING

Created by Agatha Adolfo, Modified on Thu, 14 Nov, 2024 at 10:21 AM by Agatha Adolfo

A2000 ONLINE SUPPORT DEPARTMENT

KNOWLEDGE BASE

DESCRIPTION Why is it that the Sales A/c & COGS A/c Numbers Are Not Tied to the Values in Sales Analysis?

1. IS IT MANDATORY FOR THESE 2 FIGURES TO TIE?

No, it is NOT MANDATORY. The Sales Analysis picks up only sales transactions that are created in the Sales Module; where these sales transactions perform auto-post to the GL – Sales A/c and Cost of Goods Sold A/c.

Theoretically they should tie, but due to many other channels where numbers can be posted into the GL (these 2 accounts), they may not be so. However it is a good cross-checking tool to ensure the P&L (Gross Profit) numbers are congruent with the Sales Analysis numbers.

2. WHAT ARE THE POSSIBLE CAUSES?

Besides the auto-posting from Sales transactions, the following are also likely causes:-

Some Service products may be mapped to an Expense A/c instead of the COGS A/c. When transacted in the Sales Modules, they do not auto-post to the COGS A/c but flow to the expense item. It will be picked up in the Sales Analysis but not in the COGS A/c.

The Journal Voucher, Cash Book, Payables & Receivables modules may have direct entries passed into the COGS A/c or Sales A/c. As such it gets picked up in the GL side, but not in the Sales Analysis.

Stock Adjustments made (receipts or issues) can be mapped to a COGS A/c and these transactions made were not picked up in the Sales Analysis. However it manifests in the GL ledger and this discrepancy shows.

Other control accounts (like Sales or Purchase Discounts at the global level) may have been mapped to the COGS A/c and as such these values reflect in the GL but were not picked up at the Sales Analysis.

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