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taze83
Level 1

Labor costs showing negative on P&L

Hello - I have a created labor item to give us better understanding of true costs and margin on our projects, but we just noticed that the labor is hitting as a negative on the P&L when we close out build orders.  I have experimented with a couple different labor set ups, and it is either decreasing our expenses, or decreasing our COGS, when I believe it should be increasing as it is a true cost.  We are using QB Desktop, and operate with on a cash basis.

1 Comment 1
BettyJaneB
QuickBooks Team

Labor costs showing negative on P&L

Glad to see you again here in the Community, @taze83.

 

I'm here to help identify why the labor cost is showing as negative on your P&L report in QuickBooks Desktop.

 

To get this matter sorted out, I suggest reviewing the labor costs transactions on your P&L reports. This way, you'll be able to verify the reason behind the negative amount that's showing up on your end.

 

It'd be best to open the Transaction Journal of the entry to see if the debit and credit amounts are correct. To do that, just refer to the Reports section of the entry and choose Transaction Journal. Please see the sample snip attached: 

 

If the transaction is correct and the problem continues, I recommend reaching out to your accountant to help determine the root cause of this issue. This way, they'll be able to provide the best course of action for your business. 

 

You can also look for an accountant from our site: Find an accountant or bookkeeper who loves your business as much as you do.

 

Lastly, I'm sharing this article below to guide you in tracking your job costs in the system: Tracking job costs in QuickBooks Desktop.

 

If you have any more questions or concerns, please don't hesitate to comment below. Have a safe and productive weekend ahead!

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