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a1stove
May 1, 2024
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Creating a bank deposit slip adds to the income side of Profit & Loss. How do I prevent this?

  • May 1, 2024
  • 1 reply
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Best answer by IrizA

When I create a bank deposit slip, I want only the slip. I don't want the deposit slip amount to show on my Profit and Loss report because it is overstating my income. What am I doing when I create a bank deposit slip that I shouldn't be doing?  How do I prevent this? thank you


Thank you for providing a screenshot of your concern, a1stove. Let's place your deposit slip amount on the right report. 

 

In QuickBooks Online (QBO), creating a bank deposit doesn't affect the Profit and Loss (P&L) report since this only impacts the Balance Sheet. However, since you've mentioned that it's showing in your P&L report, the Bank Deposit account seems to be miscategorized in the Income account instead of its appropriate category.  

 

To resolve this and prevent it from happening again, ensure that the Bank Deposit account is categorized correctly. To do this, I recommend consulting your accountant for advice on the appropriate category. 

 

Additionally, you can use this material whenever you're ready to reconcile your books:  Reconcile an account in QuickBooks Online.

 

I'm still here to help whenever you have more questions regarding deposits and the reports affected by them. Just keep me notified by leaving a comment below. 

1 reply

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DebSheenD
May 1, 2024

Let me share some information about Profit and Loss and creating bank deposit slips in QuickBooks Online (QBO), @a1stove.

 

Creating a bank deposit in QBO does not directly affect the Profit & Loss statement. The deposit transaction is recorded in the balance sheet, not the income statement.

 

Moreover, you can browse these articles to learn how to get the most out of your financial data: Customize reports in QuickBooks Online. 

 

Feel free to let me know if you have any other questions about Profit and Loss. Remember, we're here to help.

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a1stoveAuthor
May 2, 2024

Thank you for the response, my issue is that when I create a bank deposit it is directly affecting the profit and loss statement.  The deposit transaction is being automatically recorded on the profit and loss statement. How do I change this? It is making the profit side to the statement larger than it should be.

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MirriamM
May 3, 2024

It's great to hear from you again, a1stove. I would be happy to assist you with your query regarding the transaction reflected on the Profit and Loss Statement report. 

 

In QuickBooks Online (QBO), if a deposit impacts your income account, it will appear on the Profit and Loss Statement report. 

 

To confirm this, you can click on the deposit amount on the report, which will take you to the Transaction report, where you can check the account used.

 

If you categorized the deposit incorrectly, I recommend editing it to the appropriate account so it won't affect the income to your Profit and loss report.

 

  1. Open the bank deposit.
  2. In the Add funds to this deposit section, go to the Account column and change the associated account. 
  3. Click Save and close.

 

In case some transactions can't be found on the report, you can check out this article as a guide on what to do: Find the missing income and expense transactions in your Profit and Loss report.

 

To help you with the account reconciliation process, I suggest checking out this article: Reconcile an account in QuickBooks Online. It provides best practices to follow during reconciliation and also offers solutions to the challenges that you may face during the process. It's a great resource to keep handy for future reference.

 

If you have further questions about your Profit and Loss Statement report, let me know by commenting below, a1stove. I'll be here to answer them for you.

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