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Gregory West(R)

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Manitoba Canada,
18.10.2016, 21:52
 

Balancesheet 'Current Earnings' <> Income Statement (General)

I run both the Income Statement for 2015-05-01 to 2016-04-30 and Balance Sheet up to 2016-04-30. The problem is I get different numbers for the net profit/loss, on the income statement, and the current earnings on the balance sheet. Over the months the spread gets wider between these two reports. Any idea as to why / how this is happening?

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Gregory A. West
DB&W Systems Limited

DavidJ(R)

20.10.2016, 07:09

@ Gregory West

Balancesheet 'Current Earnings' <> Income Statement

I run both the Income Statement for 2015-05-01 to 2016-04-30 and Balance
Sheet up to 2016-04-30. The problem is I get different numbers for the net
profit/loss, on the income statement, and the current earnings on the
balance sheet. Over the months the spread gets wider between these two
reports. Any idea as to why / how this is happening?

Different concepts.
Net profit in Income Statement is in respect of a slice of time. In your case, 366 days.
Retained earnings in Balance Sheet is from the beginning of time to balance date.
In some rare circumstances (or by coincidence) these *might* be the same.
Accounting 101
HTH

Gregory West(R)

E-mail

Manitoba Canada,
20.10.2016, 13:12

@ DavidJ

Balancesheet 'Current Earnings' <> Income Statement

Different concepts.
Net profit in Income Statement is in respect of a slice of time. In your
case, 366 days.
Retained earnings in Balance Sheet is from the beginning of time to balance
date.
In some rare circumstances (or by coincidence) these *might* be the same.
Accounting 101
HTH

I do understand the Retained Earnings vs Current Earnings. I am having issues with the Current earnings, not Retained.

Here is something odd, I found a Year End issue. That has been fixed, but I still have a problem. When I run my income statement for 2015-05-01 to 2015-05-31 and the balance sheet as of 2015-05-31 the two 'current income' amounts are off by $757. At the end of June the difference says at $757. July the amount jumps to $12,951.67 and stays that was through out the rest of the year. How is this possible? I can understand if the Current Income is a carry forward amount. But why would it jump from one month to the next. There are no other transactions being entered. What I would expect is if the Balance Sheet 'current earnings' was off by X after the first month, it would remain off by X until year end. Where can the extra amounts be coming from.

Further investigation shows that the error of $756.67 comes on May 1st, 2015. On that day there are three I/E entries.
#1 Income of $1,390.00 10 service sales got a total of $1390.00
#2 Part Sale of $250.00
#3 Expense of $4,344
Total Income for the day is $ -2,704.00 Which is the amount shown on the Income statement. The Balance Sheet for May 1st, 2015 shows a current earnings of $-1,947.33. Deference of $756.67. It looks like the numbers for the income statement care correct, but I am not sure how I can find out what is going into the calculation for the Current Earnings. Is there a query or something that is being run to generate the Current Earnings. If so could I run it against my database to see what numbers SQL Ledger is using to calculate the Current Earnings?

---
Gregory A. West
DB&W Systems Limited

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