Your largest customer and your most profitable customer are often different people, and the gap is usually the discount you gave to win the volume.
Big accounts negotiate: a rate down here, freight absorbed there, longer credit than everyone else. Each concession is small and reasonable, and together they can turn the customer who buys the most into the one who earns the least.
Profit by party puts the two side by side. It is the report that decides where a rate should be revisited, which account is worth protecting when a competitor circles, and which "important customer" is important only in turnover.
So the cost and the sale meet on each document.
From the purchases behind the items.
Over a period long enough to be fair.
Revisit rates; protect the accounts that earn.
The money side of the business: what has been billed, what has been collected, what is still owed, and what the tax on all of it comes to. Party ledgers sit at the centre — every bill and every payment lands on somebody’s khata, and the balance there is the number you act on.
Most of this area runs on its own once bills are being raised: ledgers update as you bill, reminders go out on their due dates, and the GST reports are built from what is already recorded.
The other cuts of the same question.
Party-wise profit and loss · Bill-wise profit · Item-wise profit and loss
Every feature, by plan →The cost carried on the items sold, the same basis as bill-wise profit.
Yes — if a party is billed at an agreed rate, that is the rate the profit is calculated from.
Long enough to cover the seasonality of your trade; a single month can flatter or punish an account unfairly.
The biggest account is not always the one worth protecting.
