Two set of Profit & Loss and Balance Sheets

Is it possible to create two set of Profit & Loss and Balance Sheet?

This is to support Theory of Constraints (TOC) adoption for our client.

We want our client to follow Throughput Accounting for internal decision making and Financial Accounting for external reporting as it needs to follow GAAP.

The changes in Throughput Accounting are at Gross Margin (Throughput as per TOC) and Inventory Valuation.

Throughput is defined as Net Sales minus Truly Variable Cost (TVC).

Truly Variable Cost includes the Direct Material Cost of the Bill of Material, subcontracting cost. It does NOT include any labor cost or factory overhead cost.

Inventory Valuation of SFG and FG is at Raw Material Cost without any overhead allocation.

This has significant impact on how P&L and Balance sheet is presented.

We want to produce P&L and Balance Sheet every week rather than every month.

Yes you can make another P&L and Balance Sheet. Duplicate the original one and rename it. Modify it according to your requirements. Make sure you do all these in a custom app. We had done something similar for client who wanted P&L as of any date of his selection which could be mid of the month against month end which is standard.

Thanks Muzzammil. What changes we will have to make in the Chart of Accounts to get Throughput Accounting perspective to be achieved?