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Rosalinda
Level 1

Why are invoices showing up on the Profit and Loss statement as a credot?

 
Solved
Best answer October 15, 2017

Best Answers
qbteachmt
Level 15

Why are invoices showing up on the Profit and Loss statement as a credot?

When you list a charge item on the Sales Forms (invoice or sales receipt), this is a Credit to the account to which that charge item is linked.

 

On Invoices (unpaid sale) this is Debit AR and Credit Income. Then, the payment you receive will be Debit Banking and Credit AR, by your use of Receive Payment and applying that to one or more Invoices.

 

If you are asking why they show when they are still not Paid, then you control running your reports on Cash Basis or Accrual Basis.

 

Cash Basis = only if paid, and Income for that date of payment and not the date of the invoice.

 

Acrrual Basis = shows as income for the date on the invoice, even if you Never get paid.

View solution in original post

3 Comments
qbteachmt
Level 15

Why are invoices showing up on the Profit and Loss statement as a credot?

When you list a charge item on the Sales Forms (invoice or sales receipt), this is a Credit to the account to which that charge item is linked.

 

On Invoices (unpaid sale) this is Debit AR and Credit Income. Then, the payment you receive will be Debit Banking and Credit AR, by your use of Receive Payment and applying that to one or more Invoices.

 

If you are asking why they show when they are still not Paid, then you control running your reports on Cash Basis or Accrual Basis.

 

Cash Basis = only if paid, and Income for that date of payment and not the date of the invoice.

 

Acrrual Basis = shows as income for the date on the invoice, even if you Never get paid.

View solution in original post

CPetty
Level 1

Why are invoices showing up on the Profit and Loss statement as a credot?

Hi!

I am running a cash basis system and the invoice items are showing up in the Contracting Revenue vs. the actual payments.  How do I fix it?  The number on my P&L for Revenue is drastically off of what was actually received.  (The number is significantly lower than what we actually received).

 

Anonymous
Not applicable

Why are invoices showing up on the Profit and Loss statement as a credot?

@CPetty, what account do you have the items for sale that show up on your invoices and payments depositing into? 

 

For your items...

Screenshot (265).png

 

 

And for your received payments...receive.PNG

 

 

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