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sw1222
Level 2

accounts receivables

I currently have automatic bank feeds.  When i receive a payment through QuickBooks, I match it up to the invoice.  Once that is done, the payment is now automatically recorded as accounts receivables.

Is there another step I should be doing so that it gets recorded as income?

I noticed it comes up in my P&L report (cash not accrual) as accounts receivables.

Please help.

Thank you!

2 Comments 2
jenop2
QuickBooks Team

accounts receivables

This can happen if the product or service you're selling is tied up to an Accounts Receivables account. I'll guide you through the necessary steps to ensure that payments are correctly allocated to an income account.

 

Here's what you need to do:

 

  1. Go to the Gear icon and select Products and services.
  2. Look for an item that is used in the invoices, then click Edit.
  3. Scroll down a little bit and look for the Income account.
  4. Click the drop-down list beside it and change it to an income account.
  5. Click Save and close.

 

After that, go back to the Profit and Loss report and check if the transactions are now posted under the correct income account.

 

Let me also share these articles for additional guidance when running Profit and Loss reports in QBO:

 

 

Please feel free to visit the forum if you require any further assistance or have follow-up questions about running reports. We're here to help you maximize your experience with QuickBooks. 

Rainflurry
Level 14

accounts receivables

@sw1222 

 

The response provided by @jenop2 is nonsense.  As a QB employee, they should know that QB won't allow you to assign A/R to a product or service  

 

To confirm, you're not seeing A/R on your P&L, you're seeing it as the split account on an item of income, correct?  If so, that's normal.  Even though you're on cash basis, when you receive a payment on an invoice, A/R is reduced in QB and shows it as the split account.  

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