Carry Over Balance

Create an income account and call it Balance Forward, Prior balance or whatever you want to distinguish this account.  It should be listed as the first income account in the chart of the accounts.  Create a journal entry and debt the TOTAL for all classes.  Do not include a class on this line.  Then add a line for each class and record positive balances as a credit and negative amounts as a debit.  Include a class on each line.  This will then show up when you run the profit and loss by class, but show up as a zero when you run a standard P&L.  You have to do this at the beginning of each year.  

Thanks,  I will give it a shot.

Hello QBsguru,

When you say create an Income Acount, are you referring toan Income account in the Charts of Accounts level? I am overseeing the budget for a non-profit. We start the fiscal year with a new budget (ex: general operating budget. When we build our budget in QB, we have the budgeted amount indicated, Then we report on our income and expense. Lets say we have budgeted $1,000 for a Fundraiser. Then we collect Income of $5,000 and our Expenses are $2,000. We have a Net Income of $4,000. However QBO, when I run a P&L (or the Budget v Actuals), it will show the $5,000 Income and the $2,000 Expense and a Net Income of only $3,000. QBO will not add the budgeted $1,000 as the starting Income. How can I factor this in so that QBO P&L will show the Net Income in totality (using the a budgeted amount, Income and Expenses)?  I do not want to rely on memory (oh..we have this Income plus $1000) or track this manually.