Why does the Profit and Loss issue vendor credits in increments?

Hi there! 

I'm here to share some insights into why you have different data in your Profit and Loss report.

The data reflect in your Profit and Loss report depends on your accounting method. The amount may be incorrect if you're on a cash basis since COGS is affected if you have inventory received and paid in the future with one or multiple payments. 

Let's perform some troubleshooting procedures. You may encounter some cache issues if you run on an accrual basis. Let's access QuickBooks Online (QBO) using a private or incognito window. 

Here's how:

• Google Chrome: Ctrl + Shift + N 
• Firefox: Ctrl + Shift + P 
• Safari: Command + Shift + N 

Then go back and try to match the bills. If it works, we can clear your browser's cache to delete those temporarily stored files and free some space on your browser's data.

You can read our rundown and learn how tracking inventory impacts your reports: Impacts of inventory tracking on Balance Sheet and Profit & Loss reports.

You might want to check out these articles for more detailed information about the Profit and Loss report:

• Run a Profit and Loss report by bank account in QuickBooks Online
• Run a Profit and Loss Comparison Report

Leave a comment below if you have any other questions. I'm a post away from helping. Have a great day!

Thank you for the feedback.  We are a cash basis company. We recently converted from Quickbooks desktop Pro to Online and I think this is part of the problem.   We are an auto repair shop, so every part we purchase is for immediate resale to the customer.  We do not use quickbooks to inventory parts. With Quickbooks desktop, each purchase was categorized as a Cost of Good.  I did not have to mark it billable and bill it to individual customers.   When we converted to Quickbooks Online, our cost of goods accounts were transferred over and we continue to use them as we have in the past.  But from I'm reading, Quickbooks online treats cost of goods as inventory items.  Which effects our standard reports.   Is this accurate and what can I do to fix this?

Let me shed some light on your concern.

When you switch from QuickBooks Desktop (QBDT) to QuickBooks Online (QBO), the online program recalculates your inventory using the First-In, First-Out method and shows the highest gross profit and final inventory value on the balance sheet. For more in-depth information, you can browse this article: Learn how features and data move from QuickBooks Desktop to QuickBooks Online.

Furthermore, the Cost of Goods Sold (COGS) account tracks all costs involved with the things you sell and allowing you to accurately determine gross profits. The account will give the total underlying costs on your Profit & Loss reports. You can go over these resources to learn more  about inventory assets and COGS:

• Understand inventory assets and cost of goods sold tracking
• How to calculate and record COGS

I suggest speaking with an accountant for advice on how to track the components of your inventory. They can advise you on how to handle the items and transactions in QuickBooks correctly. Reaching out to them ensures the accuracy of your records.

You can go over the links below to get acclimated to the features and processes in the online program:

• Online tutorials
• Self-help articles

Keep me posted below if you have other QuickBooks concerns or questions about reports and inventory tracking. I'll get back to help make sure you're taken of. Enjoy the rest of the day.