A statement of operations summarizes an organization's financial operations during a specified period. This report shows income and expenses as well as payment of earnings and additions to reserves. The Statement of Operations in Agvance is found at Accounting Reports / General Ledger / Financial Reports. Setup must be completed prior to running the report.
Each section of the report has a Setup button. This allows General Ledger Account Classifications to be selected for the particular area.
- Operating Expenses – This includes the operating expenses of the business. One or more Account Classifications may be selected. The Classification name displays as a subheading with a total of all the accounts in that Classification.
- Gain (Loss) on Sale of Assets – This shows the total gain or loss of all accounts from the Classifications selected.
- Other Income (Expense) – This includes the other income and expenses of the business. One or more Account Classifications may be selected. The Classification name displays as a subheading with a total for all the accounts in that Classification.
- Additional Inc/Exp After Local Net Loss – The selected Classifications display with a total for the accounts that are included.
- Provision (Credit) for Income Taxes – This totals all accounts in the single Account Classification selected.
- GL Sales Account and Cost of Sales Account – This is optionally used to include subdivisions for the Sales and Cost of Sales totals displayed.
About the Statement of Operations
- Sales, at the top of the report, is a total of all Direct Income accounts. Cost of Sales is the total of all Direct Expense accounts. These totals may include subdivisions if the GL Sales Account and Cost of Sales option is selected.
- When the GL Sales Account and Cost of Sales option is selected, optionally choose specific Profit Centers, include a Profit Center breakdown, print a new page per Profit Center, and include a Consolidated report.
- The Show Detail option may be used to display the General Ledger Accounts included in the Classifications selected for the Operating Expenses and Other Income (Expense) sections of the report. The Group/Subtotal checkboxes may be used to subtotal those accounts listed.
- The Top of Page Message and Bottom of Page Message display on each page of the report.
- The Load Set and Save Set buttons are used to retain the setup of the classifications.
- Formulas:
- Gross Margin = Sales – Cost of Sales
- Income (Loss) from Operations = Gross Margin – Total Operating Expenses – Gain (Loss) on Sale of Assets
- Local Net Gain (Loss) = Income (Loss) from Operations + Net debit and credits for the Other Income (Expense) classifications. This amount should be equal to the Net Income on the Income Statement.
- Net Savings (Loss) Before Income Taxes = Local Net Gain (Loss) + Additional Inc/Exp After Local Net Loss
- Net Savings (Loss) = Net Savings (Loss) Before Income Taxes + Provision (Credit) for Income Taxes
Example
Troubleshooting Tips
If comparing to a prior year and some of the information is not displaying, review the Classification name in both datasets to verify they match. The Classification names must match exactly for the report to pull the correct information.
