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usertreasurer3
Level 1

On the QBO Common Issues section, I see "Uncategorized Income" 31 transactions. What does this mean?

I'm new to QBO and am setting up a nonprofit youth center. I began entering transactions manually for the start of the July fiscal year, since we're switching from Quicken. I entered some donations made online, for which there are processing fees, as sales receipts, then subtracted the processing fee on the deposit to the bank account. The first time I did about 8 of these donations, I used the delivered "Services" sales item on the receipt, which was assigned to the wrong account. After realizing this, I tried to fix it by creating an adjusting journal entry to assign the donations to the "4100 Individual Contributions" revenue account I created. I later realized that I needed to create a new 'Individual Contributions' sales item and link it to the 4100 Individual Contributions revenue account I'd created. I then updated the sales receipts replacing the 'Services' item with the 'Individual Contributions' item. I also reversed the adjusting journal entry. The bank account balance is what it should be as of the date I've entered transactions for, and the "4100 Individual Contributions" account is showing the donations. But on the QBO Overview page Common Issues section, it shows 31 transactions under "Uncategorized Income". What does this mean?
7 Comments 7
SarahannC
Moderator

On the QBO Common Issues section, I see "Uncategorized Income" 31 transactions. What does this mean?

Hello there, usertreasurer3.

 

It's nice to hear from you, and I'd be glad to provide further details about your concern.

 

Let's go back to the Overviewmenu and look for the COMMON ISSUES list. Then, click the Uncategorized Income link. Then, open the transaction and correct the account from Uncategorized Income to the correct one.
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In case you're experiencing Uncategorized Income from Banking page, you can go ahead and select the right category for this transaction. Here's how:

 

  1. Go to the Banking or Transaction menu on the left panel.
  2. In the For Review tab, find the transaction assigned to Uncategorized Income. Then, click on the  transaction to view the details.
  3. Click the Category drop-down arrow to select the correct account.
  4. Then, click Add to categorize them.

 

Also, utilize the Find Math option to apply the payment to an invoice you have already entered in QuickBooks. Then, tick all the associated transactions to have the same total amount, and click Save.

 

You can use these articles as an additional reference when categorizing transactions and reconciling account in QBO:
 

 

Let me know if you have other questions with QuickBooks. I'd be glad to help you anytime. Take care and stay safe always.

usertreasurer3
Level 1

On the QBO Common Issues section, I see "Uncategorized Income" 31 transactions. What does this mean?

Thanks for the suggestion. 

 

I tried that.  In the Banking > Transactions, for the bank account I deposited these donations to, I don't have any uncategorized transactions.

ReymondO
QuickBooks Team

On the QBO Common Issues section, I see "Uncategorized Income" 31 transactions. What does this mean?

Hey there, @usertreasurer3.

 

Thanks for following the steps recommended by my colleague above. Let me share more insights on why you're getting this info in the COMMON ISSUES list.

 

It could be that you've got a sales item that was categorized under Uncategorized Income. Once you create a transaction and select this item, it will automatically to the Uncategorized Income list. 

 

To check, you can open each affected sales transactions and review the product or services that you're using. This way, we can trace what item is under the Uncategorized Income account.

 

Let me show you how:

 

  1. Go back to the Overview menu and look for the COMMON ISSUES list.
  2. Click the Uncategorized Income link to show the breakdown.
  3. Open each transaction and check the product/service that was used.

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Once you find the item, change its income account to correct your records. You can use this article for more info: Change the account for a product/service item.

income account1.PNG
Additionally, you can run the Sales by Product/Service Summary report in QuickBooks. This will show your total sales for each product or service. This also includes the quantity, amount, % of sales, and average price. Just go to the Reports menu and open the Sales by Product/Service Summary report to access it.

Should you have any follow-up questions or concerns, don't hesitate to post again here in the Community or leave a comment on this thread. I'll take care of it. Have a great day ahead.

usertreasurer3
Level 1

On the QBO Common Issues section, I see "Uncategorized Income" 31 transactions. What does this mean?

Thanks, ReymondO,

 

The current Chart Of Account Detail type for my 4100 Individual Contributions, 4200 Corporate Contributions and 4300 Foundation Grants accounts is Non-Profit Revenue.  If I understand correctly, those should all change to Sales of Product Income if I use Sales Receipts to record donations.  Is that correct?  If so, when would I use the Non-Profit Revenue type?

usertreasurer3
Level 1

On the QBO Common Issues section, I see "Uncategorized Income" 31 transactions. What does this mean?

As a follow-up, I went ahead and changed the Chart of Account detail type for my 4100, 4200 and 4300 contributions accounts, which are linked to non-inventory sales items, from Non-Profit Revenue to Sales of Product Revenue which is what the article ReymondO referenced seemed to suggest was necessary.  But the review still shows 32 uncategorized income transactions, so this issue isn't solved yet.  I've attached a series of screen shots to help show the current setup.  Uncategorized Income Screen Shots.png

 

JonpriL
Moderator

On the QBO Common Issues section, I see "Uncategorized Income" 31 transactions. What does this mean?

Hello @usertreasurer3,

 

Good work, you're on the right track in changing the detail type of your account in your chart of accounts.

 

However, it is recommended to consult an accountant for advice and help you understand the correct category of your account. If you haven't yet, here's a useful link you can follow so you can find one near you: Find an accountant or bookkeeper.

 

On top of that, I've also included this reference for a compilation of articles you can use while working with us: Know where you stand financially.

 

If you have any other questions, please let me know by leaving any comments below. I'll be here to lend a hand.

usertreasurer3
Level 1

On the QBO Common Issues section, I see "Uncategorized Income" 31 transactions. What does this mean?

Consulting with an accountant is definitely good advice...but in this case, I figured it out myself, with the help of the Audit Log.  In short, when I started setting up my chart of accounts, I took an existing account I thought I didn't need and renamed it for my own purposes.  The account I renamed was the "Uncategorized Revenue" account, and I renamed it to "4100 Individual Contributions", which perfectly explains why I couldn't find any uncategorized income transactions.  In any case, I renamed the account and create a new 4100 Individual Contributions account, updated the accounting for all sales receipts for the Individual Contributions service and deposits and the uncategorized income report is now empty.

 

I suggest that QB consider making it impossible to edit accounts that are essential to basic QBO functions, like Uncategorized Revenue.

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