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urbanyardology
August 16, 2023
Question

Sales overstated on P&L

  • August 16, 2023
  • 1 reply
  • 0 views

Help. It looks like my sales are overstated on my P&L. When I click on sales and get to the transaction drill down report, it looks like it is counting my accounts receivable Sales, and my Sales from bank transactions. We use cash based accounting. It seems like I should not have accounts receivable included in Sales but I am not sure how to fix that. 

1 reply

S
SirielJeaBModerator
Moderator
August 16, 2023

Hello there! We're glad to see you again and appreciate you reaching out to us with your detailed concern, urbanyardology. We're more than happy to assist you in resolving the overstated sales in your Profit and Loss report. 

 

It's possible that you add the transactions in the Banking page instead of matching them to the payments, resulting in the Accounts Receivables shown in your Profit and Loss. Remember to receive payment for your invoices once funds have been received from your customers and match them to the corresponding bank transactions. 

 

To resolve the issue:

 

  1. Go to the Banking menu, then select the Categorized tab.
  2. Find the transactions in question.
  3. Select Undo in the ACTION column.
  4. Go back to the For Review page, then click Match.

 

Feel free to visit these articles for your reference in handling bank transactions moving forward:

 

 

Moreover, you can also personalize the data of your report and memorize it to save its current customization settings.

 

The Community is always here to assist you with any QuickBooks concerns, urbanyardology. You're always welcome to drop by again by clicking the Reply button below or post in our forum again. Take care, and have a nice day ahead!

U
urbanyardologyAuthor
August 16, 2023

Thank you. They have all been matched and not added. Is there a way to exclude accounts receivable from sales, and from the P&L?

JenoP
JenoPQuickBooks Team
QuickBooks Team
August 16, 2023

Jumping in to provide assistance and ensure that you have accurate information while generating reports, urbanyardology.

 

Accounts receivable is typically displayed on your Balance Sheet as it is classified as an asset. However, transactions recorded under this account might also appear in your Profit and Loss under the Sales section if your accounting method is set to Accrual.

 

Given that you're employing cash-based accounting, let's return to your Profit and Loss statement and ensure that "cash" is chosen in the Accounting method section. By doing so, you'll exclude unpaid invoices and other transactions utilizing accounts receivable from your report.

 

 

Alternatively, you can also customize the report to remove certain details from it. Here's how:

 

  1. Go back to your Profit and Loss report.
  2. Click Customize in the upper-right hand corner.
  3. Scroll-down to the Filters section.
  4. Check the box for Distribution account, then select all accounts that you only want to be part of the report.
  5. Click Run report.

 

Further details regarding this alternative approach are elaborated in this article: Customize Reports in QuickBooks Online.

 

To provide you with extra resources while dealing with Accounts Receivable and financial reports, I'll also share these articles as well:

 

 

I'll be keeping an eye out for any additional questions you might have while customizing the report. Feel free to return to the forum if you require further assistance or have any other needs.

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