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ralva
Level 1

Negative Net Ordinary Income

Hello all,

I have a question, 

I pulled a P & L  Report and it shows a negative net ordinary income. Why does it show a negative?  Does this mean I entered something incorrectly? How do I resolve this issue?

Thank you,

R

2 Comments
Pabz_L
QuickBooks Team

Negative Net Ordinary Income

Let me share some insights, @ralva.

 

Net income is also referred to as the net profit and appears as the final item on your company’s income statement. It is also the amount of profit a business has left over after paying off all of its expenses.

 

If the net income becomes negative, meaning there is a possibility that expenses are higher than sales or there are Expense transactions (or perhaps Journal Entries) either crediting an expense account or debiting it for a negative value. Here's how you can verify this:

 

  1.  In QuickBooks Desktop, navigate to the Reports tab. Then, select the Profit and Loss report.
  2. On the line with the negative or strange value, click the number to open a Transaction Report detailing the items feeding that amount.
  3. From this report, you can open and review any transaction by clicking on it.

 

From there, you'll be able to identify what's feeding the amounts listed there and why it appears negative on your P&L report. 

 

I'm adding an article to have additional reading about net income in QuickBooks: What is net income?.

 

Please don't hesitate to tag me here if you have any additional questions or concerns. I want to make sure that this will get resolved. Keep safe.

BigRedConsulting
Community Champion

Negative Net Ordinary Income

It means your expenses are more than your income.  Based on the data entered in QB, you're losing money.

 

If you think this is wrong, you can double-click on each number that looks wrong to you on the P&L to see the details behind it.  If you find things that are wrong, change them to be right and the report will update.

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