P&L (Profit & Loss)
Profit and Loss (P&L) is a financial statement used in procurement to indicate the financial performance of an organization over a specified period of time. It is calculated by subtracting the total expenses of the business from its total income, resulting in either a profit or loss. P&L statements provide organizations with insights into how their cost-management strategies are impacting their revenues, helping them to make more strategic decisions when it comes to procurement. By understanding their P&L statements and making changes accordingly, businesses can better manage profits, losses, and cash flow.
