Skip to main content

Reconcile gross profit and financial result by business line

Procedure​

  1. Create or select Lines of business and inspect the explicit sales/revenue/expense allocation rules.
  2. Define filters and allocation base for a small set of business lines; check overlapping-rule priority and the actual company/department/item/customer references.
  3. In Sales Profitability Assessment, identify whether cost is an estimate from cost registers or a standard price type. Compare per-document and monthly modes.
  4. Complete the required cost, revenue and expense-allocation operations for the reporting period before interpreting final profitability.
  5. Generate Gross Profit and Income and Expenses/Financial Results with the same period, company and currency, grouped by business line or the intended segment.
  6. Drill into revenue, cost of sales and allocated expenses, then reconcile line totals to the company total.
  7. Test assignment/deal/manager stock segmentation separately before declaring that one segment can or cannot consume another segment’s goods.

See also: Create expense items and record a classified expense, Run preliminary and final cost calculation and investigate errors.