P&L Flux Analysis — June 2026 vs. May 2026 (v2)

★CFO Summary — the month in 20 seconds

June 2026: Net income $694.0K, +13.0% MoM — real growth of ~+10% after stripping two one-time items.

Two documents distort the month. A $130.3K rent-coded vendor bill (ACME INV-2024-1848) inflated OpEx +64%; a $100.4K undocumented inventory adjustment (IA49) credited COGS and inflated gross margin to 68.8%. Normalized GM is ~59.6% and normalized operating income ~$674K (+9.8%).
All revenue growth came from new products. Price/volume/mix decomposition: new SKUs +$81.6K (HUM100CTP/CTG), existing-product volume −$12.1K, price −$3.2K. Core volume contracted ~2% — growth quality depends on the new-product pipeline.
Four customers churned an identical ~$38.0K each (~$152K/month, ~$1.8M annualized at risk) — the identical magnitude points to one lapsed recurring order type; a targeted win-back is high-leverage.
The G&A “savings” are an allocation artifact, not cuts. All ~25 discretionary accounts declined exactly −19.4% because they are booked by topside allocation journals (no vendor bills, no departments) using a single ratio. Real cash OpEx discipline is unproven.
The business step-changed in May 2026. Revenue ran $500–640K/month for ten months, then jumped to $1.35M in May (+118%) with GM up ~17 pts. June extends that new plateau (+4.6%); this flux compares two post-shift months.

P1 — before close: Validate ACME bill INV-2024-1848 ($130,294) coding to 6610 Rent. The “INV-2024” numbering on a June 2026 bill is itself anomalous. Open bill →

P1 — before close: Document inventory adjustment IA49 ($100,449 credit to 5070). It moves gross margin ~7 pts alone; June GM is provisional until resolved. Open adjustment →

1Executive Summary — Reported vs. Normalized

The comparative P&L is shown twice: as reported, and normalized to remove the incremental effect of the two flagged one-time items (ACME rent bill beyond its May comparable; 5070 inventory-adjustment credits beyond May’s level).

Revenue

$1.411M

▲ +$61.7K (+4.6%)

Gross Margin (rep.)

68.8%

normalized: 59.6%

OpEx (rep.)

$277.2K

normalized: $166.9K

Net Income (rep.)

$694.0K

▲ +13.0%

Net Income (norm.)

$675.8K

▲ +10.0% like-for-like

	Jun 2026 Reported	Jun 2026 Normalized	May 2026	Δ Reported	Δ Normalized	Jun 2025 (YoY)
Revenue (net)	1,410,539	1,410,539	1,348,861	+61,678 (+4.6%)	+61,678 (+4.6%)	632,539
Cost of Goods Sold	440,603	569,182	566,173	−125,570	+3,009 (+0.5%)	317,805
Gross Profit	969,936	841,357	782,688	+187,248	+58,669 (+7.5%)	314,734
Gross Margin %	68.8%	59.6%	58.0%	+10.7 pts	+1.6 pts	49.8%
Operating Expenses	277,209	166,915	168,642	+108,568	−1,727 (−1.0%)	129,048
Operating Income	692,727	674,442	614,046	+78,681 (+12.8%)	+60,396 (+9.8%)	185,686
Other Income / (Exp.), net	1,312	1,312	382	+930	+930	(1,287)
Net Income	694,038	675,754	614,428	+79,610 (+13.0%)	+61,326 (+10.0%)	184,399

Normalization removes the incremental effect vs. May of: ACME rent bill ($130,294 − $20,000 May comparable = $110,294 OpEx) and 5070 inventory-adjustment credits ($174,445 − $45,866 = $128,579 COGS credit). May is presented as reported; its own $45.9K of 5070 credits and $20K ACME bill are treated as run-rate. Tax effects not modeled.

2Trailing-12-Month Trend — the May 2026 step-change

The trend view reveals what a two-month flux cannot: the business operated at a stable $500–640K/month for ten consecutive months, then step-changed in May 2026 to a ~$1.4M plateau with structurally higher gross margin. June is the second month of the new regime.

Finding (new in v2): The May 2026 step-change (+118% revenue MoM, +17 GM pts) coincides with the appearance of a stable ~$150K/month journal-posted revenue block and a set of large, identically-quantified (12 units/month) big-ticket catalog items present in both May and June. This pattern is consistent with a new business line, channel, or entity coming online in May — management should confirm the source so the new plateau can be forecast with confidence. Other income also flipped from a stable −$5.9K/month to positive in May.

3Net Income Bridge — May → June 2026

The waterfall decomposes the +$79.6K net-income change. Amber denotes the inventory-adjustment swing flagged for documentation review.

4Revenue Quality — Price / Volume / Mix Bridge

Line-level decomposition of the +$69.0K gross revenue change (account 4110, 111 item groups). The result reframes the growth story: new products contributed +$81.6K while the existing portfolio contracted.

Interpretation: Headline +5.1% revenue growth is entirely attributable to the HUM100-series launch. The existing catalog declined −1.1% ($15.4K) on softer volume (−0.9%) and slightly lower realized rates (−0.2%). No items were fully discontinued (lost-item effect $0). Combined with June’s first-ever sales discounts ($8.2K) and 10× wider purchase-price variance on the new assemblies, the quality of growth warrants attention: sustaining the plateau requires either core-volume stabilization or continued new-SKU velocity.

Revenue movement by customer (top 15 by absolute change)

5Key Variance Drivers — Transaction-Level Evidence

Click any driver header to expand/collapse. Source-document links open the record in NetSuite.

Driver 1 · Rent Expense (6610) — one-time vendor bill [−]

Unfavorable −$110,961

Rent expense jumped from $31.3K to $142.3K (+354%). Segmentation by transaction type isolates it precisely: journal-posted rent was stable ($7.3K → $8.0K) while vendor-bill rent went from $24.0K to $134.3K — all of it one document: ACME Industries bill INV-2024-1848, 6/10/2026, $130,294, 6.5× the comparable May bill. Possible explanations: annual CAM/escalation true-up, prepaid-rent misclassification, or coding error. The “INV-2024-” numbering on a 2026 bill is independently anomalous.

Period	Type	Document	Entity	Amount
Jun	Vendor Bill	INV-2024-1848 (6/10)	ACME Industries	130,294.00
Jun	Journal	47 (6/1)	—	6,000.00
Jun	Vendor Bill	1758655909 (6/1)	Landlord Ltd.	4,000.00
Jun	Journal	JE87 (6/1)	—	2,000.00
May	Vendor Bill	(no doc #) (5/10)	ACME Industries	20,000.00
May	Journal + bills	46, JE86, 1758655917	Various	11,333.33

Driver 2 · COGS – Finished Goods (5070) — inventory adjustment credits [−]

Favorable — quality flag +$128,579

Account 5070 carried a net credit of $174.4K in June vs. $45.9K in May — entirely from inventory adjustments, not trading. June posted three large same-day (6/1) adjustments: IA49 ($100,449), IA02 ($40,000), IA10 ($25,746); IA49 alone exceeds all of May’s activity. These credits reduce reported COGS and account for the entire GM jump to 68.8%. Core trading COGS (5010 Purchases, 5,671 lines) was flat at +0.3% — underlying unit margins did not improve. Until IA49 is documented, June margin should not be treated as a new baseline.

Period	Document	Date	Credit to COGS
Jun	IA49	6/1	100,449.00
Jun	IA02	6/1	40,000.00
Jun	IA10	6/1	25,745.60
Jun	IA40, IA45, IA41	6/15–6/20	8,250.00
May	IA01	5/1	40,000.00
May	IA50, IA52	5/10–5/24	5,866.00

Driver 3 · Revenue (4110) — new-SKU-driven growth over a contracting core [−]

Favorable +$69,024

Gross revenue grew +5.1% across 5,027 invoice lines. The PVM bridge (Section 4) shows the composition: new SKUs +$81.6K (HUM100CTP/CTG, 200 units each at $205.80), journal/non-item revenue +$2.8K, existing-item volume −$12.1K, price −$3.3K. By customer: Oozz Incorporated (+$68.0K), Nightingale Senior Center (+$65.9K), Meetz inc. (+$50.1K) led; $80.7K of entirely new revenue from Photolist Foundation, Snaptags Consulting, Realpoint Co. Offsetting: four accounts each dropped an identical ~$37,990 (Keller PR, Oyope, Tincidunt, Phasellus Vitae Mauris) — one lapsed recurring order type, specific and recoverable.

Driver 4 · G&A “discipline” — RESOLVED: topside allocation artifact [−]

Explained +$6.6K

v1 flagged the uniform −19.4% decline across ~25 discretionary G&A accounts as a hypothesis. Dimensional segmentation now confirms it: every affected account is booked exclusively via journal entries with no department, vendor, or bill attached — a monthly topside allocation set, with one ratio (×0.8056) applied uniformly in June. No vendor-bill activity exists in these accounts in either month. Implications: (1) the “savings” reflect an allocation-model input change, not cash cost reduction; (2) forecasting these lines requires knowing the allocation driver; (3) only depreciation (68xx) carries department coding (Marketing, Operations, Administration, Products, Engineering) — expense departmentalization is otherwise absent from the ledger.

Driver 5 · Sales Discounts (4130) [−]

Unfavorable −$8,232

Discounting appeared for the first time in June — 20 GL lines vs. zero in May, concurrent with the new-logo wins. Individually immaterial; monitor as a leading indicator of pricing pressure on the new revenue plateau.

Driver 6 · Bad Debt (6691/6692) [−]

Unfavorable −$4,000 net

June recorded a $5,000 write-off via customer credit to 6691 vs. $1,000 in May to 6692. Write-offs in consecutive months merit a collections-process check, especially as the customer base scales post-step-change.

Driver 7 · Purchase Price Variance (5071) [−]

Unfavorable −$3,388

PPV widened 10× ($337 → $3,726 across 72 lines), consistent with input-cost pressure on the HUM100-series builds that drove all of June’s revenue growth. Refresh standard costs after the first full production cycle — the growth engine’s true margin is currently understated by stale standards.

Driver 8 · Operating leverage (YoY) [−]

Favorable Structural

Vs. June 2025, revenue is 2.2× ($632.5K → $1,410.5K) while salaries are flat and normalized OpEx grew only ~29% ($129.0K → $166.9K). Normalized operating margin expanded from ~29% to ~48% YoY — substantial operating leverage, assuming the May step-change revenue is durable.

6Recommended Actions

P1 · Close

Validate ACME Industries bill INV-2024-1848 ($130,294) before period close

Confirm the GL coding to 6610 Rent. If an annual true-up, consider reclassing to prepaid and amortizing; if miscoded, correct in-period. Largest single-document risk in the month (moves OpEx 64% alone). Reconcile the anomalous “INV-2024” numbering on a June 2026 bill. Open bill →

Owner: AP / Controller · Impact: $110.3K OpEx · Evidence: Driver 1

P1 · Close

Obtain supporting documentation for inventory adjustment IA49 ($100,449)

IA49 credits COGS and moves gross margin ~7 pts by itself. Determine whether it is a cycle-count true-up, standard-cost revaluation, or error correction — and whether the three same-day 6/1 adjustments (IA49, IA02, IA10, $166K combined) are related. Do not communicate 68.8% GM externally until resolved; use normalized 59.6%. Open adjustment →

Owner: Cost Accounting / Inventory Control · Impact: $128.6K COGS, 10.7 GM pts · Evidence: Driver 2

P2 · 2 wks

Confirm the source and durability of the May 2026 revenue step-change

Revenue jumped +118% in May after ten stable months, carried by a ~$150K/month journal-posted revenue block and a set of large fixed-quantity catalog items. Identify the underlying business event (new channel, entity, contract, or integration go-live) and validate that the journal-posted revenue has proper support — the entire FY26 forecast hinges on this plateau being real and recurring.

Owner: CFO / FP&A · Impact: ~$780K/month revenue base · Evidence: Section 2

P2 · 2 wks

Sales win-back on four lapsed ~$38.0K accounts

Keller PR, Oyope Industries, Tincidunt Ltd, and Phasellus Vitae Mauris each dropped an identical ~$37,990 — almost certainly the same lapsed recurring order type. Combined annualized revenue at risk: ~$1.8M. Especially important given core volume is already contracting (Section 4).

Owner: Sales leadership · Impact: $152K/month at risk · Evidence: Drivers 3, Section 4

P2 · 2 wks

Set discounting policy before the practice hardens

June introduced $8.2K of sales discounts (from zero), concurrent with new-logo wins. Establish approval thresholds now and track discount % of gross revenue as a standing KPI.

Owner: Sales Ops / CFO · Evidence: Driver 5

P3 · Month

Refresh HUM100-series standard costs; document the G&A allocation model

PPV widened 10× alongside the HUM100 launch — refresh standards after the first full production cycle so the new products’ true margin is visible. Separately, document the topside G&A allocation model (driver, ratio source, owner) now confirmed as the sole mechanism behind the −19.4% pattern, and consider department-coding operating expenses to enable dimensional reporting (only depreciation is departmentalized today).

Owner: Cost Accounting / FP&A · Evidence: Drivers 4, 7

7Appendix A — Complete Account-Level Flux (49 accounts)

Expenses shown as positive costs; parentheses denote net credit balances. Variance colors reflect direction of effect on net income. n/m = not meaningful (zero base).

Show flagged & >$1K variances only Click a column header to sort.

Acct	Account	Jun 2026	May 2026	Variance	%	GL Lines
Income
4110	Sales : Revenue	1,418,302	1,349,278	+69,024	+5.1%	5,027
4120	Sales Returns & Allowances	469	(417)	+886	n/m	5
4130	Sales Discounts	(8,232)	0	−8,232	n/m	20
Cost of Goods Sold
5000	Cost of Goods Sold (parent)	(2,236)	(1,518)	−718	+47.3%	28
5010	Purchases	610,287	608,558	+1,729	+0.3%	5,671
5020	Direct Labor & Overtime	4,764	4,677	+87	+1.9%	4
5030	Inventory Variance	(508)	0	−508	n/m	24
5040	Purchases Returns & Allowances	15	(15)	+31	n/m	2
5070	COGS – Finished Goods ⚑	(174,445)	(45,866)	−128,579	+280.3%	11
5071	Purchase Price Variance	3,726	337	+3,388	+1004%	72
5077	Manufacturing WIP	(1,000)	0	−1,000	n/m	1
Operating Expenses
6060	Advertising	4,338	5,385	−1,047	−19.4%	4
6070	Commission Expense	24,444	24,000	+444	+1.9%	4
6210	Salaries & Wages	57,743	57,743	0	0.0%	4
6230	Payroll Expenses	3,550	3,496	+53	+1.5%	6
6240	Supplies Expense	694	862	−168	−19.4%	4
6250	Automobile Expense	781	969	−188	−19.4%	4
6260	Training Expense	2,169	2,692	−524	−19.4%	4
6311	Insurance – Liability	1,735	2,154	−419	−19.4%	4
6312	Insurance – Workers’ Comp	723	897	−175	−19.4%	4
6320	Dues & Subscriptions	607	754	−147	−19.4%	4
6330	Bank Service Charges	434	538	−105	−19.4%	4
6340	Postage & Delivery	954	1,185	−230	−19.4%	4
6360	Miscellaneous Expense	(15)	0	−15	n/m	1
6370	Legal Fees	390	485	−94	−19.4%	4
6410	Business Meals & Entertainment	463	574	−112	−19.4%	4
6420	T&E – Accommodations	1,446	1,795	−349	−19.4%	4
6430	T&E – Airfare	2,314	2,872	−558	−19.4%	4
6440	T&E – Meals, Employees	1,157	1,436	−279	−19.4%	4
6450	T&E – Parking & Tolls	58	72	−14	−19.4%	4
6460	T&E – Taxi & Car Rental	347	431	−84	−19.4%	4
6470	Professional Fees	2,169	2,692	−524	−19.4%	4
6480	Outside Services	477	592	−115	−19.4%	4
6610	Rent Expense ⚑	142,294	31,333	+110,961	+354.1%	9
6620	Equipment Rental	289	359	−70	−19.4%	4
6630	Repairs & Maintenance	434	538	−105	−19.4%	4
6640	Utilities	723	897	−175	−19.4%	4
6655	Computer – Office Expense	1,735	2,154	−419	−19.4%	4
6671	Telephone – Regular Service	1,446	1,795	−349	−19.4%	4
6672	Telephone – Internet	868	1,077	−209	−19.4%	4
6673	Telephone – Cellular	578	718	−140	−19.4%	4
6674	Telephone – Online Fees	1,157	1,436	−279	−19.4%	4
6691	Bad Debt – Advertising Charge	5,000	0	+5,000	n/m	2
6692	Bad Debt – Damaged	0	1,000	−1,000	−100%	1
6820	Depr – Furniture & Fixtures	3,750	3,750	0	0.0%	4
6830	Depr – Automotive	1,667	1,667	0	0.0%	4
6870	Depr – Leasehold Improvements	10,292	10,292	0	0.0%	8
Other Income / (Expense)
7000	Other Income	8,862	7,882	+980	+12.4%	335
7500	Gain (Loss) on Sale of Assets	(7,550)	(7,500)	−50	+0.7%	5

⚑ = flagged item discussed in Section 5. A machine-readable CSV of this table accompanies the report (pl-flux-jun-vs-may-2026.csv).

8Appendix B — Flagged-Document Evidence Register

Every document cited in this report, with a direct link into the NetSuite record for one-click review. Links require an active NetSuite session with permission to view the record.

Document	Type	Date	Entity	Account	Amount	Relevance
INV-2024-1848	Vendor Bill	6/10/26	ACME Industries	6610 Rent	130,294.00	P1 One-time rent spike; anomalous doc numbering
IA49	Inventory Adj.	6/1/26	—	5070 COGS-FG	100,449.00 cr	P1 Undocumented; drives GM +7 pts
IA02	Inventory Adj.	6/1/26	—	5070 COGS-FG	40,000.00 cr	Same-day cluster with IA49/IA10
IA10	Inventory Adj.	6/1/26	—	5070 COGS-FG	25,745.60 cr	Same-day cluster with IA49/IA02
IA01	Inventory Adj.	5/1/26	—	5070 COGS-FG	40,000.00 cr	May comparable; monthly $40K pattern with IA02
IA40 / IA41 / IA45	Inventory Adj.	6/15–20	—	5070 COGS-FG	8,250.00 cr	Minor June adjustments
IA50 / IA52	Inventory Adj.	5/10–24	—	5070 COGS-FG	5,866.00 cr	Minor May adjustments
1758655909	Vendor Bill	6/1/26	Landlord Ltd.	6610 Rent	4,000.00	Recurring monthly rent (normal)
1758655917	Vendor Bill	5/1/26	Landlord Ltd.	6610 Rent	4,000.00	Recurring monthly rent (normal)
47 / JE87	Journals	6/1/26	—	6610 Rent	8,000.00	Journal-posted rent (stable)
46 / JE86	Journals	5/1/26	—	6610 Rent	7,333.33	Journal-posted rent (stable)

9Methodology & Limitations

Scope & data source

Flux census: 100% of posting GL lines (transaction.posting = 'T') in periods May 2026 (id 212) and Jun 2026 (id 213), restricted to P&L account types (Income, OthIncome, COGS, Expense, OthExpense): 11,352 GL lines, 49 accounts. A census, not a sample.
Trend context: monthly P&L totals by account type for the trailing 12 months (Jul 2025–Jun 2026), same posting filter.
Source tables: transactionaccountingline joined to transaction, account, transactionline + item (product/quantity), entity (customer/vendor), and department (dimensional segmentation), queried live via SuiteQL on July 28, 2026.
Sign convention: GL amounts negated (-amount) so income credits are positive; expenses presented as positive costs; net credits in cost accounts shown in parentheses.

Analytical definitions

Materiality threshold: $5,000 absolute account-level variance for document-level drill-down; all 49 accounts reported regardless.
Normalization: removes from June only the incremental effect vs. May of the two flagged items (ACME bill $110,294 beyond May comparable; 5070 credits $128,579 beyond May level). May is treated as run-rate. Tax effects not modeled.
Price/volume/mix: per item group with activity in both months — volume = Δquantity × May average rate; price = Δaverage rate × June quantity. Items with no May activity classified as “new”; no June activity as “lost”; non-item GL revenue (journals) shown separately. Components reconcile exactly to the +$69,024 account-4110 variance.
Favorable / unfavorable refers to direction of impact on net income, not on the account balance.

Known limitations

Open periods. Both comparison periods are not yet closed. Late journals, accruals, or reclasses will change these figures; re-run at close.
Undocumented inventory adjustments. IA49 ($100.4K) carries no memo; its accounting substance cannot be confirmed from GL data alone. June's reported 68.8% GM is provisional — use normalized 59.6% for decision-making until resolved.
May 2026 step-change unexplained in-ledger. The T12M trend identifies when the business changed but not why; the ~$150K/month journal revenue block and fixed-quantity catalog items lack in-ledger business context. Management confirmation required (P2 action).
Sparse dimensional coding. Department segmentation was performed, but only depreciation accounts carry department values; all other OpEx is booked topside without dimensions. Class/location segmentation would likewise return mostly null. This is a data-coding limitation of the ledger, not of the analysis.
Consolidated, ledger-currency view. No FX decomposition; if multiple subsidiaries/currencies contribute, part of the variance could be translation-driven.
Header-level entity attribution. Customer attribution uses the transaction-header entity; journal revenue (~$150K/month, stable) is unattributed in the customer tornado. PVM quantity uses ABS(quantity), so returns net against sales within an item.
AI-generated narrative. Driver explanations are analytical inferences from transaction patterns (e.g., “lapsed recurring order” from four identical $37,990 declines; “allocation model” from uniform ratios on department-less journals). They are evidence-based hypotheses to be validated with process owners. All figures, however, are deterministic ledger computations.

Reproducibility

All figures derive from deterministic SuiteQL aggregations over transactionaccountingline. Re-running the same queries against the same ledger state reproduces every number. Account-level extract: pl-flux-jun-vs-may-2026.csv. The PVM decomposition reconciles to the GL variance to the cent.