Accumulative Profit Definition

General Ledger Module > Configuration > general Ledger Accounts

The accumulative profit account is an internal account which works out the profit from the previous year and accumulative years into one figure.

This is automatically done per year end on Reports.

All figures that are Income statement items are rolled into the accumulative profit account.

 

Parent account where all sub accounts are rolled into at year end.

The difference between report GL Report No1 and GL Report No2.

GL Report 1 is an auditors report and the correct report to be used.

This report restricts you to only run the report for a financial year,

All income statement accounts are zeroed at the beginning of each year and figures are added for each month until the end period of the report. Maximum 1 year or end of financial period of that year.

GL Report 2 is a useful report when looking at all accounts without zeroing Income statement accounts for the year.

It just shows all transactions throughout all financial years. This is helpful for a manager who wants to know what the accumulative expense was for ALL financial years. (Managers report NOT Accounting)

Various ways of looking at the Accumulative profit.

Run the report called Summary Income Report per year and total up the net profit. Remember you will have to do this from the first year.

Also need to look if there was a balance journal inserted on take on from year 1 in Accumulative Profit (sub account - this is an account and normally only used to take on a balance).

 

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Profit and Loss by Period Report

GL Module > Report List > Profit and Loss by Period Report 

 

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Balance sheet / Financial Position report

Look at the balance sheet and go down on your last level. – GL Module >Reports >Balance sheet

 

 

Retained Income is your income from the previous year OR and including other previous years.

Net income is your current financial year, which equals your income statement year to date on current period

Run the balance sheet for each year end and see how the accumulative profit is rolled up. If there is a problem in the Accumulative profit, it is because there is entries in the Income statement type accounts.