This report is a summary by category listing of the gross profit and loss sustained by your business during the financial year. It is derived in Phoenix by analysing the change in the Physical and Asset accounts, and using all categories listed except those assigned to the Equity group.
The equity group is a pre-defined group established within Phoenix for you to assign all personal or non-business related categories. It is the only decision that needs to be made during the set up phase to ensure an accurate profit and loss report.
The purpose of the Phoenix Profit & Loss report is to determine the profitability of the whole or part of the business being reported on. This is evident by the fact that parts of the business activities can be included or excluded from the report
We need to consider the handling of transactions when individual accounts or enterprises are included or excluded from the report
For an accurate Profit and loss report, all accounts should be included. The report includes incomes & expenses from the reconciled accounts, depreciation or appreciation in the asset accounts, and trading profit or loss in the physical accounts. Any transaction which is a link or transfer is simply moving a balance from one place to another, and hence will not be seen for the purposes of a profit and loss report. See also Profit & Loss Detail.
There is an option of using the taxation values in the Profit and Loss report. See Taxation Values in Profit and Loss for information on this.
To view more detail of a particular amount on the report, move the mouse over the transaction until the mouse pointer changes to a magnifying glass. While the pointer is still a magnifying glass click on the transaction. This produces another report showing which transactions make up the amount on the report.
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