When running the Profitability report there are categories showing large values that do not make sense.
The Profitability report will be generated with attention to the ledger numbers that do not meet our expected profitability numbers. Most businesses have margins for each of their category lines, if the margins do not fall within the expected margin range then the profitability numbers will need to be investigated.
To investigate profiability, run the Profitability report and check for the cost or income ledger numbers that are out of the expected range. Use the List Transactions by G/L number report to list the Cost or Income ledgers for the date the profitability report was generated. The List Transactions by G/L report will show the invoice numbers which we can use to investiate the invoices further.
The video below will demonstrate using the techniques mentioned above to investigate Profitability anomalies.