Problem updating item accounts - not showing on Reports
I tried updating the revenue accounts for the products and services but the accounts don't reflect the same on the invoices.
Just a brief background - the company is a training center and provides various language courses etc. We started new quickbooks in Jan 2019. At this point, all the revenue for the company was recognized under one revenue account.
Come march 2019, owners decided they wanted to identify the revenue stream for two different types of courses. Therefore, I added two sub-accounts to the revenue and updated each item to its relevant account as to have two identifiable revenue streams and that was okay.
Now the problem is if I run a report for these two revenue accounts from the COA, it appears fine but it does not appear correctly on the profit and loss and other reports. Turns out, all the invoices issued in the first two months (before we divided the revenue) are still incorrectly showing in their original account and not under the revenue sub-account and this is showing massive difference on the profit and loss statement. I have come to think that the account update only applied to the invoices issued after we created tow revenue accounts and any invoices issued before that are still the same in the system.
Any suggestions on how this can be fixed. I am in a rut as the owners want to see the breakdown of the revenues and I cant seem to fix it.
You're right in thinking that changes you make on accounts in your COA are applied moving forward.
For you to fix those transactions created before you made changes in your COA, you'll have to recreate them. Ensure that all info is the same, including the dates so your books remain accurate. With this, your Profit and Loss report will also show correct figures for the sub-accounts you created.