Topic: GL account setup profit/loss retained earnings
I am running in serious trouble for the GL setup, checked in previous posts but do not solve the problem.
We are under OHADA accounting system (almost like french type COA). P&L and retained earnings account in our system are under "assets type" and cannot set it in the system, neither retained earning (still an asset account) as a balance account? please enlight me I do not understand (maybe my english is so bad...)
What is the rationale in FA for P&L? for retained earnings?
Our Procedure in calculating profit and loss has 9 steps:
1. Margin on goods = income - expense +/- stock variation
2. Margin on components = income - expense +/- stock variation
3. Added value = (Margin on goods + Margin on components + extra income + grants + other income) - (stocked components and supplies purchase) - other purchases - packaging purchase +/- stock variation extra supplies - shipping - services (ie bank charges etc...) - taxes
4. surplus = added value - personnel charges
5. P&L = Surplus + extra stuff
6. financial income
7. ordinary activity income = P&L- financial income
8. extraordinary income
9.fiscal result = ordinary activity income + extraordinary income - income tax
Now, how can I integrate it?
Even if i go manual and dont use this i cannot set the other accounts because of these two so exchange rate loss cannot be set etc...
How can be calculated income tax (35% yearly)?