Matched deposits not reporting on P&L

Yes, there's a way to make your report accurate and match those payments to the deposit, @rbutz. The information below can guide you through the process while ensuring transactions are reflected in the Profit and Loss statement.

To ensure accurate reporting on your Profit & Loss (P&L) statement, reviewing the items listed on your invoice is essential. Verify that the income category assigned to each product or service is correctly linked to the appropriate income account. Here's how:

1. Click Sales in the navigation panel.

2. Under Products & services, select the item listed on your invoices.

3. Click Edit under the Action column.

4. Make sure to choose the correct category in the Income account tab.

This step is essential since the P&L statement is designed to track income and expenses, and any misalignment could result in inaccurate financial reporting.

In addition, when recording deposits, ensure they're linked directly to the appropriate income accounts. Then, verify that the accounting preferences in QuickBooks Online are set up to recognize these matched transactions as income.

Moreover, you can generate the profit and loss report to review all income and expense transactions.

Feel free to read these articles to consistently review your accounts in QuickBooks to verify that they align with your bank and credit card statements:

• Categorize online bank transactions.
• Match online bank transactions. 
• Learn the reconciliation workflow.

The Community is always available to provide further assistance whenever you require support managing your bank transactions. Just leave a comment below. Best regards!

I checked and the items in the product and services all have the correct income account. How do I check if the deposits are linked directly to the correct income accounts? I match them to the payments that are entered through received payments. 

@rbutz 

"Once I do this it doesn't report as income on the P & L. I am not even sure where this deposit ends up. Why would it not show as income when I am matching the payments to the deposits? We also don't want to change any of the categories as they use it to track COGS and Inventory. Is there a way to make it report correctly and still match those payments to the deposit?"

In this case, the deposits are unrelated to income because the income was either reported when they received payment on the invoice (if you're on cash basis) or when the invoice was created (if you're on accrual basis).  All you're doing is matching the deposit to income already recorded.    

I'm glad to step in and help you further with your QuickBooks Online inquiry, rbutz. Thank you for providing more details about your situation. I understand you've already verified the items in your products and services have the correct income accounts. Let's dive into why this is happening and how we can ensure your reports are accurate.

When you match deposits to received payments, you're not directly linking to income accounts. Instead, you're clearing out the Undeposited Funds account. I agree with  @Rainflurry's suggestion income recognition occurs earlier in the process, either when the invoice is created (for accrual basis accounting) or when the payment is received (for cash basis accounting).

Matching deposits to payments doesn't create new income. Rather, it tracks the movement of already recognized income. This is why it doesn't affect the Profit and Loss statement (P&L). As you correctly pointed out, you're matching income already recorded in the system.

For a comprehensive understanding of managing your accounts in QuickBooks and ensuring they align with your bank and credit card statements, refer to these articles:

• Categorize online bank transactions
• Reconcile an account in QuickBooks Online

Thank you for your continued trust in our services. Your commitment to maintaining accurate financial records is commendable, and I'm here to help you achieve that goal. If you have any more questions or concerns, please don't hesitate to reach out. We're here to lend a hand.

I understand what you mean about the income being recognized somewhere else and that matching it doesn't cause an increase of income but there is no income reporting at all. When I run a profit and loss report there is no income reported. Everything seems to be marked in the correct way so I am not sure why nothing is reporting from anywhere.

I understand how challenging it must be not to see any income reported, despite everything being marked correctly, rbutz. I'll ensure we can troubleshoot this together so you can go back to business.

First, please check if the reporting period is set correctly. Sometimes, discrepancies can occur if the dates are not aligned with the period you want to analyze.

Next, let's verify that all income transactions have been properly categorized and that no filters have been applied that might be excluding income categories from the report.

If the above steps don't resolve the issue, I would recommend contacting our QuickBooks Support team so they can delve deeper into this problem and conduct an investigation when necessary.

Here are the steps to contact our support:

1. Go to the Help menu at the upper right.
2. Click the Search tab.
3. Press Contact Us at the bottom part. 
4. In the What can we help you with?, select a topic to connect with the right expert.
5. Tell us what's on your mind in the box provided.
6. Click Continue.
7. Select Chat with us or Have us call you.

I'm adding these resources for further information on managing bank transactions in QuickBooks Online:

• Categorize and match online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

You can always get back to the Community space if there's anything else you need to know about matching deposits and other bank-related tasks. I'm here to help all the time, rbutz.

@rbutz 

Pull up an invoice that you think isn't being reported as income on the P&L when it should.  At the bottom of the invoice, click More > Transaction journal.  On that Transaction Journal report, click 'Columns' in the upper-right and check the box next to 'Account type'.  That will show you whether or not that invoice is crediting an income account.  If it is, then you need to determine why it's not showing as income on your P&L.  Does the date range on the P&L include this invoice?  Are you running the P&L on accrual basis or cash basis?  If cash basis, are you certain the invoice is showing paid?  If the invoice is not crediting an income account, then the invoice items are not posting to an income account and that's the issue.

If that doesn't resolve it, post screenshots of the Transaction Journal report and the income section of the P&L where the invoice should be.