Reports shows total revenue not net income

classic Classic list List threaded Threaded
2 messages Options
Reply | Threaded
Open this post in threaded view
|

Reports shows total revenue not net income

Martijn Heuts
Good morning,
All reports shows total revenue vs net income. Is there a way that a report can show the net income.
When I printed out my reports and compared it to the total bank deposits I was off and I figured out that my total bank income was less that what the reporting showed. 
I figured it's because I had some open balances (Client's paid 50% of invoice at time of order) and I guess even though they are open balances, the total charges are included in any of the reports.
So is there a way to get a net income (not the open balances included, only the posted payments) so the report and the bank statement will match?
Thanks so much I really appreciate it. Have a great rest of the week!
[hidden email]
_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|

Re: Reports shows total revenue not net income

Adrien Monteleone
Martijn,

Not sure what you mean by ‘all reports’ as there are plenty of reports which don’t show either.

If you mean the P&L or Income Statement, then yes, total revenue and total expenses will be shown, with the net profit or loss listed at the bottom.

It seems though your question is more geared toward timing of posted entries.

One principle of accounting is the matching principle. It advises that revenue is earned when you transfer ownership of goods (usually by possession, but not always) to a customer or when a service for a customer is actually performed, NOT when you receive payment.

The same goes for expenses. You incur expenses when you use a good or service, not when you pay for them.

The principle also advises that expenses should be incurred in the same period they were used to earn particular revenue. This way, revenue and expenses are ‘matched.’

What you describe is something closer to cash flow, and there is a report for that.

However, you bring up the topic of bank statement reconciliation. That is something different entirely. You don’t use either the cash flow or income statement reports for this. (Those reports and your bank statement will most likely never match.)

You use the reconciliation function in GnuCash.

Take a few minutes to read over these sections in the Tutorial and Concepts Guide:
5.4. Reconciling Your Accounts <https://www.gnucash.org/docs/v2.6/C/gnucash-guide/cbook-reconacct1.html>
4.4. Reconciliation <https://www.gnucash.org/docs/v2.6/C/gnucash-guide/txns-reconcile1.html>

Hope that helps,

Adrien

> On May 16, 2017, at 8:48 AM, Martijn Heuts <[hidden email]> wrote:
>
> Good morning,
> All reports shows total revenue vs net income. Is there a way that a report can show the net income.
> When I printed out my reports and compared it to the total bank deposits I was off and I figured out that my total bank income was less that what the reporting showed.
> I figured it's because I had some open balances (Client's paid 50% of invoice at time of order) and I guess even though they are open balances, the total charges are included in any of the reports.
> So is there a way to get a net income (not the open balances included, only the posted payments) so the report and the bank statement will match?
> Thanks so much I really appreciate it. Have a great rest of the week!
> [hidden email]
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

_______________________________________________
gnucash-user mailing list
[hidden email]
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.