Question

My P and L report is cash basis but is showing mostly invoices and few deposits

Forum|Forum|5 years ago
May 16, 2021
5 replies
52 views

This is my Quickbooks Desktop work flow...

1. When a customer payment is recevied, I go to the invoice and select Receive Payment.

2. I then go to Record Deposit, find the related Invoice and record the check number and date of deposit.

I have two issues.... When I run a Standard P & L Report using Cash Basis why does it list (each line of) the invoice instead of the just the total deposit amount? See screen shot. Next, sometimes I see a deposit listed in the report AND the invoice items which all add up to the deposit amount which is also listed in the same P & L report which means the income is being double counted in the P & L report.

QuickBooks Desktop

S

ShiellaGraceA

Level 9

Thanks for coming by, @OceanDeep.

I'll share some information about the cash versus accrual accounting method in the report. The cash basis method takes place when you had the money in hand. Take note that this doesn't take into any A/R or A/P accounts. That said, it applies to payments from clients whether in the form of cash, checks, or credit card receipts. Thus, in your Transaction Detail report, you'll see invoices where payment is received on that period.

Learn more about this method in the articles below:

About the double deposit, you'll want to verify if this isn't a duplicate entry. You can just click on the transaction to check. From there, you can delete the duplicate record.

Otherwise, follow the steps to re-sort your accounts. This helps fix the odd behavior of your Chart of Accounts. It makes your lists go back to their default order. So if you have manually changed the order of your list, re-sorting will undo these changes.

Here's how:

From the Lists menu, go to Chart of Accounts.
Scroll down towards the Account drop-down.
Select Re-sort List. See the image below.
Click OK when prompted.

If you need help with other report tasks, browse this link to go to our general report topics with articles. Look for responses that fit your concern.

Leave a reply anytime if you still have questions or concerns with Profit and Loss reports. I'm just a comment away. Take care and have a fantastic week ahead.

O

OceanDeepAuthor

Thank you SheillaGrace for the reply. I am famliar with the difference between cost and accrual basis. My question is if I'm running a report in cash basis why are invoices AND deposits appearing? Why aren't the Deposit totals OR just the Invoices listed (assuming they've been paid on the listed date)?

BigRedConsulting

Level 15

@OceanDeep

RE: My question is if I'm running a report in cash basis why are invoices AND deposits appearing?

Based on your original description of what you do, "I then go to Record Deposit, find the related Invoice and record the check number and date of deposit.", I think the reason is that you're coding deposits using an income account. After receiving a payment and applying it to an invoice, the deposit should be linked to that payment, and when it does it will be associated with the Undeposited Funds account - an asset - and not an income account. Such deposits won't appear anywhere on your P&L, either on a cash or accrual basis.

When creating a deposit after receiving a payment, the Payments to Deposit window should appear automatically, making it easy to pick the payment(s) you are depositing. If not, then click the Payments button at the top of the window and it'll appear.

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