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P&L by products and services

I need a P&L by Products and Services report with detailed expenses by product/services, not have them all in COGS.  When I run P&L by P&S and filter by P&S group, all expenses are in COGS under each product, with the detailed expense line in "unspecified" column.  Does anyone have a work-around for this?  in set up there is only an option for one expense account.     I've experimented many ways.  HELP!!

9 Comments
Established Member

Re: P&L by products and services

P&L is an accounting report. Are you asking for a Sales or Profit or Purchases report from the things you Buy and Sell or Charge? That is a different perspective. In other words, you only need one COGS account, because the P&L is not based on the other details. It is based on Accounts, not Products.

Established Member

Re: P&L by products and services

If you are using QB Desktop, you can setup Jobs = each product and each service you provide and then if you code all cost and revenue to these projects, can run P&L by Job which will be like a matrix, meaning the P&L accounts will go down the left side same as now, but you will have a column for each Job going across the top with a P&L for each Job (product/service) side-by-side. Keep the costs in COGS as you have them as they will now be split into the different columns by Job. This summarizes the mechanical process but for the report to be meaningful, you will need to have every cost in a Job column so that total costs are under one job or another. This will require allocating indirect (shared) costs between Jobs, which you would need a method for how to allocate those costs, ideally on a causal-benefical basis so the allocation makes sense and I can help you with this if needed. 

Established Member

Re: P&L by products and services

The use of the termonology "Product/Service" is used for QB Online. It is the parallel to QB Desktop Items.

Established Member

Re: P&L by products and services

So are you saying that Jobs or Classes or Accounts would not work for what he is trying to do?  

If not, why not?  Do they not provide a way to split those costs?

Member

Re: P&L by products and services

You can go to Reports Menu, Custom Reports, Summary.  Then customize the report to display columns by item detail, and the rows by income statement.

 

Travis Bart

President of TSS Accounting

Established Member

Re: P&L by products and services

"So are you saying that Jobs"

 

The function of Job is like Subcustomer (that's what it is called in QB Online) and that is the Name or Buyer's info. Products and Services are what you make, do, sell, charge, buy, or buy and sell and list on Purchase and Sales transactions with Names on them. So Job might be Smith:Main House and Products might be Paint and Services might be Painting. Job profit (sales and costs) are a different perspective than Product and Services' perspective.

 

"or Classes"

 

Class and Location (in QB Online) tracking provides for divisional reporting, such as Buying Paint and charging for Paint and Painting labor to Class = Residential, Class = Commercial, and/or Location = Which of your Offices or Divisions (remodel vs new construction) made that purchase and/or that sale.

 

"or Accounts would not ork for what he is trying to do?"

 

The Accounts will be like the P&L already beingrun: "not have them all in COGS"

 

Products and Services are used to flow data to accounts, and that is why you only really need one Income account and one COGS account, to match the tax form(s) you file. The Financial reports are not the reports to analyze the data. The Product and Service perspectives are from Sales and Purchases.

 

Examples: Reports > All Reports, Review Sales (also in Manager Products and Inventory), Sales by Product/Service Summary shows costs and prices from purchases and sales of that same Product and Service.

 

And instead of "Job" you would run Income by Customer Summary, to see Net or "Profitability" with Customers as Rows.

 

For Costs, you run the Purchases by Product/Service Detail report found in Manager Products and Inventory. This allows you to see cost, no matter Which Accounts the products and services are linked to. That's the point of this perspective = show me my Products and Services data, not my Financial data. Products and Services are your Operational activities. Financial data should always be simpler, as it simply is the Financial perspective, similar to what you report for taxes.

 

Please see my two images. There is a Sample QB Online file you can use to learn from and explore these functions.

 

 

Product ProfitabilityProduct ProfitabilityPurchase Details of Products and ServicesPurchase Details of Products and Services

Established Member

Re: P&L by products and services

Thanks for sharing.  I hope this is helpful to the QB user who asked about this since that is goal here.

Since my clients are all GovCon and most smalls are services businesses I do not usually see products on QB clients. I am familiar with the P&L by Job in QBDT and QBO subcustomer as well as with Classes and Accounts. But when we are looking, we need to see financial info by project/ job/ contract, etc. and must be able to have accounts setup to  reconcile to total cost on Trial Balance. Unfortunately, too many calculations must be computed and maintained outside of QB and then have to be manually re-typed back into QB for job cost reports to be complete as required, which increases the risk of mis-calculation and data entry entry errors, which I see all the time, so I do not usually recommend QB for a long-term solution for any GovCon clients with cost-type contracts since functions that take just minutes in proper project cost accounting system, can take hours of manual steps, requiring owner to waste time & effort on non-value added tasks trying to manipulating QB data vs. critical tasks such as Bus Development. 

Established Member

Re: P&L by products and services

Good to know.  Never used Items much in QBDT except for my own hourly billing rates.

Established Member

Re: P&L by products and services

Items (products and services) are a powerful function for any QB program, since it allows you to use Quantity and to associate a Purchase to a Charge for that same "thing" you just set up and named. They are used for Scope on Estimates, and you might have heard the term Inputs or Resources required; that = Items in QB. Along with Job Tracking (project or subcustomer, for whatever matters to you), they provide the additional Management, Activity and Oeprational functions for Managing the business and reporting on Activities. This is much more than just "doing some bookkeeping."