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cuawithya
Level 1

How do I create expense types such as 'entertaining' under 'other expenses' so that the basic P&L report shows my taxable profit? It appears that new fields are blocked

I'm trying to separate out any expenses that cannot be offset against corporation tax so that this can be more easily deduced from the P&L report
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Best answer February 24, 2020

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GeorgiaC
QuickBooks Team

How do I create expense types such as 'entertaining' under 'other expenses' so that the basic P&L report shows my taxable profit? It appears that new fields are blocked

Hello cuawithya, 

 

 

As long as the accounts have the same account type, e.g. Other expense, you can create sub-accounts under the parent category.

 

To create a sub account, go to Accounting > Chart of Accounts > Select the drop-down beside the account you wish to make a sub-account > Select Edit > Tick the check-box beside 'Is sub-account' and select the parent account on the drop-down. 

 

If you have an existing category for entertaining under a different account type, e.g. 'Expenses', you can change this to 'Other Expenses' to allow you to create sub accounts under this category.

 

Thanks

 

 

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5 REPLIES 5
GeorgiaC
QuickBooks Team

How do I create expense types such as 'entertaining' under 'other expenses' so that the basic P&L report shows my taxable profit? It appears that new fields are blocked

Hello cuawithya, 

 

 

As long as the accounts have the same account type, e.g. Other expense, you can create sub-accounts under the parent category.

 

To create a sub account, go to Accounting > Chart of Accounts > Select the drop-down beside the account you wish to make a sub-account > Select Edit > Tick the check-box beside 'Is sub-account' and select the parent account on the drop-down. 

 

If you have an existing category for entertaining under a different account type, e.g. 'Expenses', you can change this to 'Other Expenses' to allow you to create sub accounts under this category.

 

Thanks

 

 

cuawithya
Level 1

How do I create expense types such as 'entertaining' under 'other expenses' so that the basic P&L report shows my taxable profit? It appears that new fields are blocked

Hi,

 

Thank you for the feedback. I have an existing category (account type 'Expense').  Using your method I have changed this to 'Other Expense' however the options for 'Detail Type' are far more limited. 

 

I was using 'Promotional Meals' but under 'Other Expense' this option is not available and eve using sub-account I can see how to create an option in this field. I simply want to move this and corporation tax out of expenses as it will give me a clearer view of my tax liability for the year.

MirriamM
Moderator

How do I create expense types such as 'entertaining' under 'other expenses' so that the basic P&L report shows my taxable profit? It appears that new fields are blocked

Welcome back, cuawithya.

 

When creating an account, each Account Type has it's own list for the Detail Type.

 

You're correct that the Entertainment (Detail Type) falls on the Expenses (Account Type). Since each business has a unique structure, and it's the same with the accounts used when tracking transactions. That said, I suggest consulting an Accountant or a Tax professional. They can help you select for the specific account to set up.

 

To learn more about creating an account, check these articles:

If you have additional questions, just leave a comment below. I'm always here for you. Have a wonderful day ahead!

cuawithya
Level 1

How do I create expense types such as 'entertaining' under 'other expenses' so that the basic P&L report shows my taxable profit? It appears that new fields are blocked

So the information that I really need is how to create new 'detail types' under other expenses as the ones currently set up do not provide me with the resolution that I require to manage my accounts.

 

I think that it would be really beneficial to be able to align financial reporting with UK taxation requirements. It would reduce the reliance on accountants which would help to offset the cost of having a package such as QuickBooks. Otherwise this package offers little benefit other than VAT compliance with making tax digital. 

John C
QuickBooks Team

How do I create expense types such as 'entertaining' under 'other expenses' so that the basic P&L report shows my taxable profit? It appears that new fields are blocked

Hi n cuawithya

 

It is not possible to amend or create new 'detail type' options. Our product is constantly evolving and to assist us meet your requirements, and hopefully get them implemented, we encourage you to leave feedback from within the product, we will also submit a product enhancement request.

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