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Adrienne20
Level 1

Paid Invoice and P&L

I created invoices linked to items. Each item is linked to the specific income account appropriate to that item. The amount of outstanding invoices shows in a Quickbook created A/R account. When I mark the or part of the invoice as paid the A/R account balance goes down as expected and the balance due on the invoice reduces as expected. I then make a deposit to the banking account and that all goes as expected. What I can't figure out is why the payment does not show in the income account for the item that was paid for or on a P&L. I have checked the item set-up and it is linked to the correct income account and not a bank account. The transaction is all happening in the same month so I don't think it is an issue of accrual vs cash. Is there some setting I am missing?

1 Comment 1
JessT
Moderator

Paid Invoice and P&L

Hi Adrienne20,

 

Checking the income account of the items, the transaction dates, and the accounting method are correct. I can tell you are very familiar with how QuickBooks works. Let's find out why the income isn't reported in the P&L.

 

Have you checked the account type of the income accounts assigned to the items? I have experienced a client saying they assigned an income account, but when we checked the type in the Chart of Accounts, they are not income. They named the account as Sales Income, but its account type is Other Current Asset, which is a Balance Sheet account.

 

If the assigned accounts are really an Income type, we can say that this is a data issue. We run the Verify and Rebuild utilities so that QuickBooks can identify corrupted data and fix it. Here's an article for your reference: Verify and rebuild data in QuickBooks Desktop for Mac.

 

Deleting and recreating the affected transactions is also a way to correct issues like this.

 

Feel free to share some news or comment below if you have questions along the way. We'll continue to help you.

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