# Profit and Loss Statement

Use the **Profit and Loss Statement** to review income, expenses, and the resulting profit or loss for a selected period. This report supports month-end review, management reporting, trend analysis, and investigation of unexpected movements.

This guide explains how to select the reporting period, compare monthly or quarterly results, open supporting transactions, complete review checks, export the report, and resolve common problems.

## Before you start

Make sure that:

* you have access to the **Profit and Loss Statement** and the company that you need to review;
* transactions for the reporting period are submitted, because draft transactions do not affect the report;
* sales, purchases, stock movements, payroll, depreciation, tax entries, accruals, and other month-end adjustments are recorded up to the reporting date;
* you know whether your organisation uses a **Finance Book**, **Cost Center**, **Project**, or another accounting dimension for separate reporting; and
* you use the same company, period, currency, and scope filters when you compare this report with another financial report.

If you prepare reports for formal filing, lending, or audit, ask your accountant to review the final figures.

## 1. Open the report


1. Open **Accounting**.
2. In **Financial Statements**, select **Profit and Loss Statement**.
3. Select the required **Company**.

Always review the filters before you use or export the figures.

## 2. Select the reporting period

Use **Filter Based On** to choose one of these options:

* **Fiscal Year**: select a **Start Year** and an **End Year**. Use this option for standard financial-year reporting or comparison across financial years.
* **Date Range**: select a **Start Date** and an **End Date**. Use this option for a specific month, quarter, or custom reporting period.

Then select **Periodicity**:

| Option | Use it for |
|--------|------------|
| **Monthly** | Monthly management reporting and trend review |
| **Quarterly** | Quarterly comparisons |
| **Half-Yearly** | Six-month comparisons |
| **Yearly** | Annual reporting or comparison across years |

For one month's result, select that month with **Date Range**. For a month-by-month trend, select a wider period and use **Monthly**. For annual comparison, select the required financial years and use **Yearly**.

## 3. Set the remaining filters

Use only the filters that apply to your review. An extra scope filter can cause the report to differ from another financial report.

| Filter | What it controls |
|--------|------------------|
| **Company** | The organisation, chart of accounts, and default reporting currency |
| **Finance Book** | Entries assigned to one finance book |
| **Currency** | The currency used to display the report |
| **Cost Center** | Income and expenses assigned to one or more selected cost centres |
| **Project** | Income and expenses assigned to one or more selected projects |
| **Select View** | **Report View** shows values, **Growth View** shows period-to-period percentage change, and **Margin View** shows each line as a percentage of total income |
| **Accumulated Values** | When selected, each period includes the values from earlier periods in the selected range. When cleared, each period shows its own activity. |
| **Include Default FB Entries** | When a **Finance Book** is selected, include entries that use the default finance book. |
| **Show zero values** | Include account rows that have no value in the selected scope. |

Your site can show additional accounting-dimension filters. Apply them only when you intend to report on that part of the organisation.

The label **Cost Center** uses the spelling that appears in NexWave.

For a normal period review, use **Report View**. Keep **Accumulated Values** cleared when you want each month or quarter to show its own activity. Select it when you want a running result across the selected periods.

 ![Profit and Loss Statement filters, summary, chart, and account groups](https://docs.nexwaveapp.com/api/files.get?sig=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJrZXkiOiJ1cGxvYWRzL2YxMTg5ZTEzLTdlMTQtNDA1ZC04MDI1LWMxZmI0Y2Y2MTg0ZC8xZGFkOGZiOC1hNGI4LTQ0Y2EtYjI1Ni1mMjliYzVjZDUxZGUvMDEtcGwtZmlsdGVycy5wbmciLCJ0eXBlIjoiYXR0YWNobWVudCIsImlhdCI6MTc5MjYyMDkwMCwiZXhwIjoxNzkyNzA3MzAwfQ.YdmgcJRbLZGy087SyF8IKf1t_mW2aZfGJjRHm6Vhxag)

## 4. Read the report

The summary cards show total income, total expenses, and the resulting profit or loss. The labels can change with the selected period, for example **Total Income This Year**, **Total Expense This Year**, and **Profit This Year** for a single annual view.

The chart shows the same high-level result across the selected periods. Use it to identify significant changes, then review the account rows below it.

The account table contains these main sections:

* **Income**: income accounts and their group totals;
* **Expense**: expense accounts and their group totals; and
* **Profit for the year**: total income less total expenses for the selected scope.

Use the arrows beside account groups to expand or collapse the report. Start with the high-level groups, then open the accounts that explain a material movement.

A negative value is not automatically an error. It can result from a credit note, refund, reversal, correction, or posting that is opposite to the normal balance of the account.

## 5. Compare periods and percentages


1. Select the full period that you want to compare.
2. Select **Monthly**, **Quarterly**, **Half-Yearly**, or **Yearly**.
3. Clear **Accumulated Values** to compare each period's activity.
4. Review material movements in income, direct costs, overheads, and profit.
5. Use **Growth View** when you need the percentage change from one period to the next.
6. Use **Margin View** when you need each line as a percentage of total income.

The first period in **Growth View** can show *NA* because there is no earlier period in the selected range. In **Margin View**, review the percentage together with the underlying amount so a small-value movement is not overstated.

Select **Accumulated Values** when you need a running year-to-date result. Each later column then includes the earlier periods in the selected range.

 ![Monthly Profit and Loss Statement comparison](https://docs.nexwaveapp.com/api/files.get?sig=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJrZXkiOiJ1cGxvYWRzL2YxMTg5ZTEzLTdlMTQtNDA1ZC04MDI1LWMxZmI0Y2Y2MTg0ZC85MzI5ZmY4Ni1mYmI4LTQ1NGItOTMxOC01Y2QwMDJhNzc1MDYvMDItcGwtbW9udGhseS5wbmciLCJ0eXBlIjoiYXR0YWNobWVudCIsImlhdCI6MTc5MjYyMDkwMCwiZXhwIjoxNzkyNzA3MzAwfQ.dB5PD9spt7fPZ4Ruuc5IbYko0HQI45_rSNZ8jcoDHbg)

## 6. Open the supporting transactions

Select an account row to open the **General Ledger** with the report's company, date, project, cost centre, and other supported dimension filters.

In the supporting report:


1. confirm that the company and dates match the Profit and Loss Statement;
2. check whether a **Finance Book**, **Cost Center**, **Project**, or another accounting dimension is applied;
3. review the posting date, voucher type, voucher number, debit, credit, and balance; and
4. open the source transaction when you need more detail.

Return to the Profit and Loss Statement after the review. Keep the same filters so the figures remain comparable.

## 7. Complete the month-end review

Use these checks before you approve or export the report:

* **Income completeness**: confirm that invoices, credit notes, other income, and period cut-off entries are complete.
* **Direct costs and stock**: review cost of sales, stock adjustments, landed costs, and backdated stock movements.
* **Operating expenses**: check supplier invoices, payroll, subscriptions, rent, and other recurring costs for missing or duplicate postings.
* **Accruals and prepayments**: confirm that period adjustments are posted to the correct dates and accounts.
* **Depreciation**: confirm that scheduled depreciation entries are posted for the period.
* **Tax**: review tax expense and other period tax adjustments with the applicable tax report.
* **Foreign exchange**: review realised and unrealised exchange gains or losses where applicable.
* **Accounting dimensions**: investigate income or expense that is missing a required cost centre, project, or other dimension.
* **Unusual movements**: compare with prior periods and investigate significant changes, negative values, or unexpected zero balances.
* **Profit result**: compare the final result with the related Balance Sheet, Trial Balance, and management reporting for the same scope.

Use the same company, dates, currency, finance book, and accounting dimensions across all reports. Mismatched filters are a common cause of apparent differences.

## 8. Compare actual results with a budget

The standard **Profit and Loss Statement** reports actual ledger values. It does not add budget columns.

Use the applicable budget variance report when you need actual-versus-budget analysis. Keep the company, period, account structure, cost centre, project, and other dimensions consistent with the Profit and Loss Statement before you compare the figures.

If your organisation uses a configured management P&L with budget, gross profit, or other custom measures, follow that report's approved process. Do not assume its filters or calculations are identical to the standard report.

## 9. Export the reviewed report

After you finish the checks:


1. confirm the report filters one final time;
2. expand or collapse the account groups to the required level;
3. use the available export option under **Actions**; and
4. record the reporting period and filters with the exported file.

Do not use an export that was prepared before the final month-end entries were submitted. Run and export the report again after any correction.

## Correct a figure

Do not post a manual entry only to force the report to match an expected total.


1. Select the affected account to open its supporting transactions.
2. Find the incorrect or missing source transaction.
3. Confirm the correct posting date, company, account, party, currency, and accounting dimensions.
4. Correct the source through its approved cancellation, amendment, invoice, stock, asset, payroll, or journal process.
5. Submit the correction.
6. Run the Profit and Loss Statement and the related financial reports again with identical filters.

Ask your finance lead or accountant to approve adjustments that affect a closed or filed period.

## Final review checklist

- [ ] The company and reporting period are correct.
- [ ] Optional scope filters are intentional and match related reports.
- [ ] **Accumulated Values** matches the intended period or running view.
- [ ] Significant income, expense, and profit movements were investigated.
- [ ] Draft or missing source transactions were resolved.
- [ ] Month-end accruals, depreciation, tax, stock, and payroll entries are complete.
- [ ] The result agrees with related financial reports for the same scope.
- [ ] The final report was rerun after corrections and before export.

## Troubleshooting

| Issue | Likely cause | What to do |
|-------|--------------|------------|
| An account is missing | The account has no value in the selected scope, the source transaction is not submitted, or a date, finance book, cost centre, project, currency, or other dimension excludes it | Select **Show zero values** when you need zero rows, then compare the account and source transaction with every report filter |
| A draft transaction is missing | Draft transactions do not post to the ledger | Complete the review and submit the transaction, then run the report again |
| The report uses the wrong dates | **Filter Based On** is set to the wrong option, or the selected fiscal years or date range do not match the review period | Select **Fiscal Year** or **Date Range**, then confirm every start and end value |
| Monthly or quarterly columns are not as expected | **Periodicity** or **Accumulated Values** does not match the intended comparison | Select the required periodicity and clear **Accumulated Values** for separate period activity |
| Growth values show *NA* | There is no earlier comparison period, or the prior value cannot produce a meaningful percentage | Widen the selected period and review the underlying values in **Report View** |
| Margin percentages look unusual | The value is being shown as a percentage of total income, or total income is small or negative | Return to **Report View** and review the amount and total income before using the percentage |
| The report differs when a Finance Book is selected | Entries use another finance book or the default finance book | Confirm **Finance Book** and **Include Default FB Entries**, then run the related reports with the same settings |
| A cost centre or project view is incomplete | Some transactions use another dimension value or no value | Open the supporting transactions and review the assigned dimension before correcting the source document |
| The Profit and Loss Statement differs from the Trial Balance | The reports use different scope filters, or the comparison uses Trial Balance grand totals instead of its income and expense accounts | Match all filters and compare the income and expense sections for the same period |
| Budget values are missing | The standard report does not show budget columns | Use the applicable budget variance report with matching scope filters |
| Export is unavailable or does not start | Your role can view the report but lacks the required export permission, or the browser is blocking the download | Confirm your report and export permissions with a NexWave administrator, then allow the expected download and try again |
| A value has the opposite sign | A credit note, refund, reversal, or incorrect account can produce a contra balance | Open the supporting transactions and confirm the source before making a correction |

## Related documentation

* [Complete a Month-End Close in NexWave](/doc/f1cd54ec-a904-493a-beca-5267ebf23099): complete the wider monthly close and reconciliation workflow.
* [Balance Sheet Report](/doc/c1f91d73-8344-47e5-b3fd-a92127a82091): review assets, liabilities, equity, and the current result at a selected date.
* [Trial Balance Report](/doc/4695ddf6-a7e8-41b7-b87f-e1aa8cf04564): review debit and credit balances across the chart of accounts.
* [Create and Enforce a Budget](/doc/2d0d3f93-67c4-467a-afb1-499cd995463d): create a budget and review actual-versus-budget results.
* [Accounting](/doc/85b00666-859d-4e2b-9bac-6c1dd3848464): understand the wider financial reporting and accounting module.