Why is shipping not included in gross sales? On my profit and loss sheet it lists it as part of gross income but it is subtracted from the gross income when it shouldn't

Hi there, @earthenescapes.

You'll want to use an expense account as the income account of your shipping item to post its income to your gross sales.

1. Go to Sales.
2. Select Product and Services.
3. Find your shipping item.
4. Under ACTION, select Edit.
5. On the Income account menu, select your preferred expense account.
6. Click Save and close.

I'm adding a reference here about grouping your products and services into different categories for more organized data when you run reports.

Let me know if you need anything else. Thanks!

When new transactions are uploaded they are not broken down by individual products. It's a lump sum that is transferred. I'm not sure I understand how to do this. 

Thanks for following up with us, @earthenescapes. 

To best assist, are you meaning when you bring your bank transactions in they are coming in as a lump sum instead of individual transactions? Do you mind providing a screenshot for a visual reference?

When bringing in bank transactions as a lump sum, you'd need to record these transactions first manually into QuickBooks then match them to the bank transactions using the radio button. Below I've included the steps on how you can do this to the already recorded transactions in QuickBooks. 

1. Click the transaction to expand the view of it. 
2. Look over the Records found. 
3. Review the Deposit to field on the forms then select Match. 

You can check out: Match and categorize bank transactions in QuickBooks Online for more details about matching your bank transactions to already recorded transactions in QuickBooks. 

I'll be sure to keep a lookout for your response. Please let me know if you have further questions or concerns. Take care and enjoy the day! 

I guess I was trying to say that I don't have individual shipping products. When a lump sum shipping transaction comes through (USPS) I categorized it under the shipping (cost of Goods sold). So I'm not sure how to apply the first set of instructions given to me about clicking on Sales etc...

Thank you for adding a reply, @earthenescapes.

The steps provided by JonpriL above is for the transactions that are manually added to QuickBooks.

For now, you need to check the type of transactions that are imported to QuickBooks. Also, this will depend on what type of account you categorize the shipping. Make sure to use an expense account or COGS account so this will be reported in the Profit and Loss correctly.

I'm always here to help if you have any other questions. Just add a comment below. Have a great day ahead!

Is there a way to change it for transactions that have already been uploaded?

Thank you for your comment, @earthenescapes.

Yes, you’re correct that you have to categorize the shipping under the cost of goods sold. It's not included in your gross sales because the shipping fee is a payment from your provider and it's an expense on your business.

Also, you can review and change the reporting period and accounting method of your Profit and Loss report to see your Cost of Goods Sold account. You may check to the screenshot below for your reference.

You can also save your report after customizing it: Customize Report.

Looking forward to your future comment if you need any other help. Have a nice day!