Profit and Loss Reports

Hi all,

Can someone explain please if profit and loss reports are purely based on the expenses? I was expecting this to work without raising a separate expense. Instead take a difference from sold price and cost price of the product.

Our products do have cost prices provided but report still comes back as NIL (as there is no expenses)

We use Purchase Orders and we are also using ‘Add to Inventory’ option, but this still doesn’t recognise the cost associated with buying an item.

Many thanks in advance


That’s correct, the P&L report combines expenses and payments to determine the profit amount.

Hi @hillel

Thanks for your reply.

The issue I am having is that I’ll have to raise multiple expenses per one invoice in order to record correct amounts. For instance if invoice has 10 product lines from 5 different vendors, then this will take forever to enter for every invoice. Online ecommerce shops usually raise a PO first to buy goods in order to sell it.

The way system works now is you have to sell first and then ideally raise a po for exact quantities and then record an expense. Otherwise you won’t know profit margins per sale.

I wish Expense per each order (invoice) would be recorded automatically in accordance with Purchase Order with an option at invoice stage to remove sold items from stock but create an expense based on the cost price provided.

If P&L report is based on expenses and payments, then surely every Purchase Order needs to be converted into Expense manually?
If this is the case P&L won’t be accurate unless you start recording overheads, bills, transport etc which can be set up as recurring expense.

I am curious how stock levels are taken into consideration when generating D&L report? If you record every purchase as an expense, than D&L will show loss where in fact you have stock left at the end of each year. This what is confusing.

I’ve noticed that system is fully able to calculate entire stock value by selling and cost price, which is ideal for product stock counts etc Stock amount can be added onto either profit or loss.

Surely everyone would like to know how much profit they are making per sale, especially when system has all the cost prices, even for the shipping etc


When a PO is accepted it will automatically add to the inventory level, there’s also an option to convert a PO to an expense.

Note: another way to track profit is to enable the product cost field on Settings > Product Settings.

If you’d like to see this feature changed feel free to create an issue:

In my case I have to select Add to Inventory option manually after PO has been approved. Otherwise status will not change to Received.
I can confirm that product cost option has been enabled in settings from the beginning. The system still doesn’t take that into account. I’d like to see how this should work.

Considering how user friendly most aspects of software are, recording an expense seems the most difficult and ridiculous part.

Just to name a couple of issues…

System creates expenses per either vendor or customer, meaning multiple expenses needs to be filled per order (multiple lines). This doesn’t work for online retail.

Also, items we have in stock from previous financial year needs all corresponding vendors added onto the system, even if you are not going to buy from them anymore.

Understood, I agree this can be improved. We use the forum to provide support for bugs/issues, if you’d like to see the software improved I suggest creating issues for the changes you’d like made.

Note: in the desktop/mobile app you can use the invoice item report to see the profit of each product sold, @david this may need to be added to the web app.

There is certainly an issue, can you explain how product cost price should record profit as this has been enabled in settings. System has a cost price provided, but it’s only using it for calculating stock nothing else.

As much as I would like to see software improving at this point I am trying to understand what is most convenient way of doing this.

Report per product item is different and will not show as per invoice bases and won’t include shipping costs etc

I need to find solution immediately, as we purposely started using software from the beginning of this month which is start of our financial year.

I’d certainly raise this as a feature request but just need to understand what options I have in order to make it work for now. Otherwise all the effort starting form the beginning of financial year will go to waste.

If you use the invoice item report in the desktop or mobile app you can add a ‘Profit’ column which shows the difference between the product’s cost and price.

I’m afraid I do not have Profit option in the drop down menu when trying to add new column.

iOS app is updated to the latest software.

Not sure… which version of the iOS are you using? You may want to try the desktop app.

We are on macOS Monterey version 12.6.1. This is the only desktop we use.

I meant which version of the iOS app are you using?

You can also try the macOS app or the old web app:

Sorry I should of said macOS instead iOS. We are currently on Enterprise one user license, using macOS app.

We will be buying 10 user license if we can confirm that system does profit and loss to suit our requirements.

I’ve just checked and there is no profit option to be added, same as per macOS app.

Are you checking the invoice item report?

Got the option now, thanks!

I was selecting invoice instead of invoice item. However system seems to show incorrect amounts, here is a screenshot

For example 7 items at £0.33 each costing £0.10 each, should have profit of £1.61

I see a problem with the reports. It looks like the cost for the profit is using the product’s cost rather than the cost set in the line item. This would cause an issue if the product’s cost was changed after it was invoiced. We’ll correct this in the next release.

If you could do that it will be great. The example I provided above was for a product that had no price or cost price changed after invoicing. It was also never purchased via PO number as this was item in stock from our previous financial year.

To summarise it, I have the following question. If you had an ecommerce shop, how would you record your expenses?

Would you have it set up like this…

  1. All Recurring Expenses set up for overheads, phones, utility bills etc.
  2. Add all non-recurring Expenses based on your purchases (fuel, parking fees etc.)
  3. PO number raised for every stock item purchased and then converted into Expenses.
  4. Run yearly P&L reports to get correct amount, use this formula

Payments - Expenses* = P&L + Stock Price (at cost)

*Hopefully expense amount includes Expenses and Recurring Expenses as well

That sounds right.

Note: recurring expenses generate standard expenses which are included in the reports.

Great, thanks for your help :+1: