Sales Analysis report does not match Cost of Sales Account

Question

My client is running SAP B1 8.81 PL 6.  He has set all items to standard costing method.  He has discovered that the difference between the Sales Amount and the Gross Profit amount on the Sales Analysis report, which should equal the Cost of Sales for the Items, does not match the Cost of Sales G/L account on the P&L report.  If you look at a sample of rows, the above difference divided by the quantity equals the standard cost of the item.  There are no manual journal entries that affect the COS account for the posting period that is being analyzed.  I cannot see any mathmatical difference or problem with the above analysis, nor can I find the problem.  There is about an $85K difference between the reports.  The Sales Amount on the Sales Analysis report matches the revenue account on the P&L to the penny.  Has anyone ever compared these 2 reports?  Thank you for your help.
Bill Turek

Answer 1

If you right click on an Invoice and choose "Gross Profit" it will give you a setting on how you want to calculate the Gross Profit for that invoice.
In the accounting point of view the "Base Price" should be "Item Cost" so that the Gross Profit will be (Net Selling Price - Item Cost = Gross Profit). This will give you the same Gross Profit amount between P and L and Sales Analysis Report.
However, SAP B1 gives the user the ability to select a different base price other than the Item Cost.
This gives the user the flexibility for the Sales Report. Example (Net Sales Price - Vendor Sales Price = Gross Profit). People do this sometimes because  the item's cost fluctuates if you use FIFO or average cost and they want a uniform cost to calculate their Gross Profit.
In summary if the Base Price is not set to "Item Cost" then there will be difference in the Gross Profit between the P and L and Sales Analysis Report.
See screenshot:
-Eric Alo-
B1 Financial Consultant