Why profit and loss report is showing higher income due to QB counting paid Invoices, Sales Receipts, and Deposits and separate income?

Hello stage1srvs-gmail,

Welcome to the QuickBooks Community! I want to verify the process you are using to record the transaction. Usually, the process is set up this way, as listed below:
 

1. Records an invoice or a sales receipt
2. Assigns transaction to Undeposited Funds
3. Creates a deposit using what's in Undeposited Funds.

If all three transactions go to the bank register, that would explain why the income is so high. Please let me know if this is the case. I will be here if you have further questions! See you soon. 

Hi Sasha. The bank register is showing correct transactions. No duplicates. My actual bank balance and register match. 
My Undeposited Funds account is zero. 
for each deposit, in the Undeposited Funds account, I see a deposit and a payment. If that helps. 

Hi Sasha. Actual bank balance and QB register balances match. I have a zero balance in the Undeposited Funds.  

Let's find out the causes for the higher expected sales via the profit and loss report in QuickBooks Online, Stage1srvs.

Firstly, we need to review your company's accounting method, as report balances vary based on your chosen accounting method.

Alternatively, let's generate the Sales by Product/Services Summary and Profit and Loss reports to compare balances and verify the service items' accounts. Ensure to review and compare the accounts associated with the service items configured in the system.

Here's how:

1. Go to the Reports menu.
2. Select the Profit and Loss report.
3. Choose All Dates under the Report period field (adjust the date range if necessary).
4. Click the amount in your Total income to show the details of each transaction recorded to your QuickBooks account.

On the other hand, open the Sales by Product/Services Summary.

1. Go to the Reports menu.
2. Select the Sales by Product/Services Summary report.
3. Choose All Dates under the Report period field (adjust the date range if necessary).
4. Click the Customize button and navigate to the Rows/Columns. Put a checkmark on the Transaction Type, Account.

We can export the report to Excel for comparison. If you identify service items that have been allocated to the income account, I recommend adjusting them to "Sales of Product Income" to avoid duplicating the total sales amount.

Here's how to change the account of your service items.

1. Go to the Gear Icon.
2. Click the Products and Services. Locate the items
3. Press the Edit, scroll down to the Income Account beside the Sales price/rate.
4. Choose an account from the dropdown and Save and Close.

Additionally, here's and article for customizing the report to get the specific categories you need. You can also memorize it to save its current customization settings. 

We are one post away if you need more guidance about sales transaction reports in QuickBooks Online. Keep us notified in the comment section.