The Profit and Loss statement and the Actual vs Theoretical Analysis report are not intended to tie back to each other, but even further, the amounts on these reports may have a bigger variance due to the following reasons:
- Item Locations are not used. This means that the Location-specific costs are not pulled for the reports.
- The AvT report does not include non-itemized transactions. Costs may not be accurate for the AvT report when Paid Outs, Bank Expenses, and Invoices are not itemized.
- Item Categories do not align perfectly with Cost Accounts. This makes the two reports difficult to reconcile.
- Accounts are not assigned correctly on Item records. Navigate to the Items grid to verify that Inventory Accounts are not used in place of Cost Accounts and vice versa.
How to Better Align Reports
There is a way, however, that you can get these reports more closely aligned. To do so, follow the guidelines below:
- Turn on Item Locations for Location-specific costing on reports
- Enter in itemized transactions for transactions that were entered by account for Paid Outs, Bank Expenses, and/or AP Invoices entered by account rather than by item. Entering these transactions by item will ensure that items related to these types of transactions will be included on the AvT report. Here's an example of itemizing a Paid Out for further guidance
- Use the same naming convention for Item Categories as you do for Cost Accounts. For example, if you have a FOOD COST account then create a FOOD Item Category 1, so that the Cost Account matches the Category name. This will help in comparing reports
- Ensure accounts are assigned correctly by opening the Items grid and verifying that no Inventory Accounts are listed in the 'Cost Account' Column and that no Cost Accounts are listed in the 'Inventory Accounts' column
- Select these AvT Report Parameters when running the report:
- Actual Dollar Usage - Select 'Transaction Cost'
- Items to Display - Select 'All Items'