Why is the Departmental Profit Report different if you look at ledger transactions vs the profit report

Introduction

This page is dedicated to explaining why the Departmental Profit Reports might have different totals if you look at the ledger transactions versus the profit report.

Ledger Transactions vs Profit Report

They produce the same result however are affected by date.

Profit Report

The managers profit report and reports similar were originally designed to be used by a “sales manager” type staff member. From their point of view the important thing is how much money each sale made them, over all. They do not care about dates or months. This report looks at the date of the delivery only.

Ledger Transactions

This version of the Departmental profit report looks at anything in the ledger between the selected dates (month). If there are costs on stock from previous/after months these won’t be included in the report.

See the example below:

Cost added on stock -

Departmental Profit Report run with the Ledger as the data source -

Departmental Profit Report run with the Profit Report as the data source -

Downloadable Document

Please feel free to download the above information in the downloadable PDF document below:

Why is the Departmental Profit Report different if you look at ledger transactions vs the profit report.pdf