Why are the Sales Figures different. in Different Reports ? with Logics ?
Finance for Non-Finance People
What is the logic behind this ? What is the Truth Reason ? What should I learn ?
Different Sales Figures in Finsys ERP .. How to Handle. Which figure is ok ?
Answers
Different reports are made for different users, and for different information needs
So, the reports are created on different software SQL commands, taking data from different sources
Some reasons are as follows
Due to Sales returns / debit note from customer
These are Entered in accounts by reducing sales, ( so P & L is net figure)
But online “live” status report are from the pure invoicing .
Most of the reports from the Sales and Marketing menu are also – invoice based reports
Most of the reports from the GST menu are also – invoice based reports
Both are a fact, and both are required.
And Hence this should be reconciled internally
Sales of capital goods
This is not a normal thing.. only a few transactions a year
Sale of an old machines
Sale of Old Car / Truck
Sale of old EOT Crane
Sale of scrap of old furniture
In case of sale of capital goods,
Invoice is made = yes ..
It will come in Sales auto emails = yes,
it will come in all invoice based reports. yes
But is this is sale ? = no
So, these are NOT Entered in accounts, ( so P & L is pure goods sales figure)
But online status report and most of the invoice based reports are from the pure invoicing
Both are a fact, and both are required.
And Hence this should be reconciled internally
Sales invoice for “Purchase Return”
As per GST law, & Practical reasons, it is good to make a GST invoice for purchase return
Note, in GST, it will be a part of the total
But, in accounts, it will be credited to Purchase account / purchase return account
Hence
NOT Entered in accounts in Sales, ( so P & L is pure goods sales figure)
But online status report and most of the invoice based reports are from the pure invoicing
So, some reports are made taking all these
And some other are made without these Purchase return invoices
Both are a fact, and both are required.
Any Debit note to customer ( additional income )
In case, if any debit note is entered on the customer
Entered in accounts, ( so P & L is added to sales figure)
But online status report is from the invoicing ( it is pure basic value from the invoices )
Both are a fact, and both are required.
Humbly submitted please
Debit to party for cartage, freight, insurance packing, in the Invoice
If this is taken in the invoice as an additional charge, please note that it is debited to party and sometimes credited so “other income”. ( we will prefer .. they go into Normal Sales, as per Finsys SOP )
So, in case you take it to other income, then, NOT Entered in accounts in Sales , ( so in P & L it comes separately, as other income )
But online status report and many Sales reports are GROSS from the invoicing ( it is GROSS basic value from the invoices )
Reports may have different formats
Some of these reports required and given are
Basic only
Basic of 100% invoices
Basic of Sales invoices only ( exclude the Purchase return invoices )
Export only
Domestic only ( all )
Selected series – say trading invoice only
For GST purposes
Basic + GST of 100% invoices
Basic + GST of Sales invoices only ( exclude the Purchase return invoices )
Other combinations
Show the other charges or not ?
Some reports will show all other charges / add-on’s upto transport charges, insurance, etc
And some will not
Reason = different needs
Show the Sales data for selected Group parties only ?
Facility available
Obviously, report will be for that 16xx series only
Can there is one single “best report” for Sales for Accounts people ?
Yes, the Sales register, in accounts, on landscape format, extra-wide on fools-scape paper is the best one.
If your company can ask all users to use this only, that will be great
(( this is a internal company decision ))
However this will not be The “best” for Despatch team or marketing team. They can select their own “best report”
Inter Plant Billings – peculiarities under GST laws
Whenever you bill, inter plant,
Say from your Noida plant to Manesar plant , or
plant 2 to plant 3,
for GST, it is a “Sale”, so invoice is made
for one plant’s Balance sheet / P & L , it is a sale
for 2nd plant’s Balance sheet / P & L , it is a Purchase
for consolidated BS / P & L, it is a contra entry ( to be cancelled against each other )
Inter Plant Billings – peculiarities if the purchase contra entry is not made
Note that, a Sale of first plant is purchase of 2nd plant
But this cannot be automatic
The goods must also be linked to a MRR of the 2nd plant
( there has to be a physical counting and QC of these goods at 2nd plant )
Thus, Note that if the 2nd plant does not pass the Purchase voucher of this MRR
Sale bill is reflected in the ERP immediately
But the Purchase side is not reflected in the ERP till the PV is passed
Hence some temporary differences can be there
Inter Plant Billings – peculiarities under GST laws
if there is a inter-state( UP to Haryana Plant), it is a sale / branch tfr of type A with GST
if there is a within state of UP, it is a sale / branch tfr of type B .. without GST Delivery challan
so, different reports need to take these differently
Sale Bills of FOC goods
For GST, they are a turnover, GST is to be paid
But they are removed / treated separately for the customer account
Hence again , different reports need to take these differently
Final submission
All the above are a fact, and all combinations are required.
And Hence should be respected
and should be reconciled internally.
Thus, Finsys team submission is that, accounts is the final repository of all financial data.
And the final report given by P & L Account or Trial balance is the best report
And that must be considered, and given best credence.
Why are the Sales Figures different. in Different Reports. What is the logic behind this ? What is the Truth Reason ? What should I learn ?
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