Use case.
Please find below details for your reference.
I would like to understand the following:
- Sales Revenue Oct’23 – 220,671.60 and Cost of Sales -382,183.79
- As per my understanding, the ledger will be affected only after the sales invoices are approved by the Finance dept.
- If so, below the Cost of Sales against the revenue of 220,671.60?
Analysis Output
Please review the following observations derived from the initial analysis of the provided screenshot and accompanying details.
As per the standard NetSuite process, the sales revenue is posted based on the invoice generated after item fulfillment. One potential reason for the cost of sales being higher than the sales revenue may be that only item fulfillment has occurred, and the invoice creation is pending.
Another factor contributing to the cost of sale surpassing sales revenue may be the inclusion of an approval process in the workflow. In such cases, only approved transactions impact sales revenue in the general ledger
Upon examining the attached file in the email, it is observed that the gross profit is accurately displayed. The calculation
Gross Profit=$220,671.60−$382,183.79=−$167,190.06 is correct, indicating that the cost of sale exceeds the sales revenue.
In the second screenshot, it is noted that the gross profit is presented as a negative value without any corresponding account balance effects.
Specifically, in the provided screenshot, the gross profit $946,007.96−$939,929.59=−$6,078.09. However, the reason for this negative gross profit cannot be determined solely from this screenshot. A more detailed NetSuite account analysis is required for a clearer understanding.