I'm new to managing a P&L and currently have a document like this...
Revenue/Gains/Top-Line --Sales on Product 1: 10,000 --Sales on Product 2: 20,000 --Returns on Investment 1: 10,000 --Returns on Investment 2: -5,000 --Total Revenue: 35,000 Expenses/Losses --Headcount costs: 50,000 --Investment 2: 15,000 --Total Expense: 65,000 Net Income/Bottom-Line --30,000 loss
The thing I'm unsure about is how to treat "Investment 2". It's a loss in the sense that the investment lost 5,000 value over the accounting period, and also a loss in the sense that I invested 15,000 into it.
I don't want to simply categorise it as a 20,000 combined loss in the "Expenses/Losses" section because they're fundamentally different.
Am I potentially confusing the meaning of Revenue/Gains by including negative values in there? Should I just have 2 line items in Expenses/Losses? The problem with that in my mind is that for each investment I'd need a line item in both Revenue/Gains and Expenses/Losses since month-by-month I may earn or lose money.