There are deposits showing up in my sales number on the P/L. How can I get them where they should be?

Hi lisa-block12-com,

You need to determine why your deposits are categorized as income so you can decide whether to leave them as is or not. I'll share a scenario to explain this further.

Normally, you enter a sales transaction, receive a payment, and deposit that payment. Then, sales are reflected in the Profit and Loss, and deposits are reflected in the Balance Sheet.

In QBO, a user can directly enter and categorize deposits as income without entering sales transactions. With this method, deposits are directly posted to both the Profit and Loss and Balance reports. This process is usually done on historical bank transactions.

On the other hand, a user can mistakenly enter a separate bank deposit instead of depositing payment transactions.

Right now, you'll want to open those deposit transactions, click More, and then choose Audit history to know who created them. If they are posted by mistake, you can delete them, or change their categories. If they were added from the Banking page, you can categorize them, or undo them to be matched to invoices or other transactions.

You can watch the video clip in this article so you'll be guided in handling your deposits: Record and make bank deposits in QuickBooks Online.

Please feel free to reach back out if you have more questions.