Okay, so I have recently started using the Projects feature on QB Online. I love that I am able to see how much I have in each construction project. Now I am wanting to see complete profit. How my construction company works, like most, is I take out a construction loan. I then receive draws. Is there a way to show these loans in my projects?
I currently have the loans set up in my COA as a Loan Payable. In order to show the profit, should I just wait until the end when the home is sold and create a customer for that specific project?
I'm glad to hear you're enjoying the Projects feature in QuickBooks Online. I'd like to help point you in the right direction concerning the construction loan.
While you can manage invoices, payments, expenses, estimates, time, and bills in Projects, there currently isn't a way to track loans specifically. To see loan management added to Projects, I invite you to send a message to the Product Development Team and let them know you'd like to see this added. This can be done directly through your account by clicking the Gear icon in the top right corner, the Feedback. I'll be sure to pass this info along as well.
One option to consider would be to create a loan payable account for each project. Some customers also create bank accounts for the draws you receive. I would speak with your accountant about this to make sure this would work for you.
As far as showing the profit, you're on the right track. Waiting until the home is sold and creating a customer for the project will be the best option for accuracy.
This is good insight and it definitely makes sense to be able to see Liabilities against a set of current projects. As @MorganB mentioned, the Projects Center module itself is instrumented so you can tag individual transactions (Invoices and Expenses), but not entire asset or liability accounts.
Even if you try to include an asset account as a "distribution" account and customize the report, it won't show up on the Profitability Report.
While it's a bit of a manual lift, you could create a series of liability sub-accounts under a parent "Project Loans" account. Name each sub-account after your various projects and distribute the money accordingly (remembering that the parent is an aggregate of all your loans). When you run your Profitability Report from the Projects Center, go into your Chart of Accounts and subtract the total of that associated sub-account from the project's profitability. While not an ideal solve, it should give you the data you need.