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emmettcobb
Level 1

The Cash Basis Profit and Loss erroneously records certain transactions as Commission Income. There is no Commission Income. The Accrual Basis P&L is correct.

 
1 Comment 1
Rea_M
Moderator

The Cash Basis Profit and Loss erroneously records certain transactions as Commission Income. There is no Commission Income. The Accrual Basis P&L is correct.

Hello there, @emmettcobb. I've come to share a few insights about how the Cash and Accrual accounting methods record transactions on your financial reports and show you how you can correct them in QuickBooks Online (QBO).

 

The Cash and Accrual accounting methods report your income and expenses in your Profit and Loss (P&L) report differently. When you change your accounting method from one to the other, accounts and balances might also show up in an unlikely manner.

 

For more details about using Cash and Accrual accounting methods in your reports in QBO, please see this article: Choose between cash and accrual accounting methods in QuickBooks Online.

 

Based on your description, you may have a product or service item that's categorized under Commission Income. That's why certain transactions are recorded to that account. With this, I'd recommend double-checking the transactions recorded to the said category. 

 

To do this, you need to pull up the P&L report again and double-click the affected transactions under the Commission Income category to open their details. From there, examine the product or service item(s) on the said transactions. 

 

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Then, manually open each of the product or service items' information (go to the Products and Services page) to check if they're categorized under Commission Income. Then, correct them from there if necessary. You can refer to the screenshot below for reference.

 

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Also, you may want to visit one of our Help pages as your reference in creating and managing reports in QBO: Reports for QuickBooks Online. It includes topics about running inventory and financial reports and customizing them accordingly.

 

Please don't hesitate to keep me posted on how it goes. I'm all ears if you have other reporting concerns or questions about managing income and expense transactions in QBO. You can drop a comment below, and I'll gladly help. Take care, and have a great day, @emmettcobb.

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