What is profit and loss statement in SAP FI - Financial Accounting?

SAP Term: profit and loss statement

• Component: FI

• Component Name: Financial Accounting

• Description: A comparison of revenue and expense within a certain period. The purpose of the profit and loss statement is the establishing of profit made by an organization and the sources thereof. It is a compulsory part of year-end closing.

Smart SAP Assistant

• Key Concepts: 
  A profit and loss statement (P&L) is a financial statement used in the FI Financial Accounting component of SAP that summarizes the revenues, costs, and expenses incurred during a specific period of time. It is used to measure the performance of a business and to assess its financial health. 
  
  How to use it: 
  The P&L statement can be accessed in SAP by navigating to the Financial Accounting module and selecting the “Profit and Loss Statement” option. This will open up a window where you can enter the desired time period for which you want to view the P&L statement. Once you have entered the desired time period, you can view the P&L statement for that period. 
  
  Tips & Tricks: 
  When viewing the P&L statement, it is important to pay attention to the net income or loss for the period. This figure will give you an indication of how well your business is performing financially. Additionally, it is important to compare your current P&L statement with previous ones in order to identify any trends or changes in your business’s financial performance. 
  
  Related Information: 
  The P&L statement is closely related to other financial statements such as the balance sheet and cash flow statement. It is important to understand how these statements are related in order to get a comprehensive view of your business’s financial health. Additionally, understanding how these statements interact with each other can help you make better decisions about your business’s finances.