The Korean profit and loss statement can be created on the basis of cost of goods sold. You can use the Financial Information System to create the profit and loss statement according to Korean GAAP. A sample report can be found in the report tree FIGL_INFO. The Selling and General Administrative Expenses is distinguished by Sales Costs, General Administration Costs and R&D Costs.

Enter the year under review and the name of the company code.

The structure of the sample profit and loss statement is as follows:

1. Sales
2. Cost of Goods Sold

3. Gross Profit........................ (1 + 2.2 + 2.3 + 2.4 + 2.5 -2.1)
4. Sales Costs
5. General Administrative Costs
6. Research and Development Costs
7. Operating Income........................ (3 - 4 - 5 - 6)
8. Non-Operation Result
9. Ordinary Income...........................(7+8)
10. Extraordinary Gains
11. Extraordinary Losses
12. Income before Income Taxes......... (9 +10 - 11)
13. Income Taxes
14. Net Income......................... (12 - 13)

The line items 2.1. (Beginning Inventory) and 2.5 (Ending Inventory) display the inventory of

• Merchandise
• Finished goods
• Semi-finished goods
• Goods in transit

To separate production costs, sales costs, general administrative costs and research and development costs, the functional areas are used. In the pre-configuration 4 functional areas have been created which you can interprete as following:

• 0001 Sales
• 0002 Administration
• 0003 Production
• 0004 R&D

The line item Cost of goods sold reads the costs caused by the functional area 0003 and the line item Sales cost reads the expenses caused by the functional area 0001 and so on.