on 07-30-2013 7:52 AM
Dear All,
How to display of change in inventories in Profit and Loss Statement which is the difference between opening stock and closing stock as per the format of schedule VI.
Anil
Hi Anil
It is shown under expenses after consumption of materials.
3 Total revenue (1+2)
4 Expenses
(a) Cost of materials consumed
(b) Purchases of stock-in-trade
(c) Changes in inventories of finished goods, work-in-progress and stock-in trade
(d) Employee benefits expense
(e) Finance costs
(f) Depreciation and amortisation expense
(g) Other expenses
Total expenses
5 Profit / (Loss) before exceptional and extraordinary items and tax (3 – 4)
You can check link for more clarity.
Regads
Dipak
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Dear Anil,
When preparing P/L and B/s using FSE2 Financial Statement Version please assign all GL codes like under:-
COGM A/c
COGS A/c
Stock Difference A/c
Scrapping A/c
Inventory Diff A/c
Gain/Loss A/c
Price diff on stock transfer A/c
Sub Contract change in Stock A/c
Any other GL code which affects changes in inventory of Finished Goods also should be assigned to this group of GL codes whoose total indicate Accretion/Decretion of Stock in P/L statement.
Regards,
Alok
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Hi Alok,
Many thanks for your reply.
I maintained all this settings in Financial statement as per schedule VI, But client requirement to show Opening/Closing stock in P&L
In this case, how to give better suggestion to them. I already explained the process of COGM/COGS. and the differences in inventory.
Can you tell me any other better way to approach with client.
Anil
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