How can i reflect mortgage principle payment in P&L?

Thanks for dropping by the Community space, bsubbiah23.

Let me address your concern about mortgage principle payment in the profit and loss report (P&L) in QuickBooks Online (QBO).

The mortgage principal payment will not show in the P&L report. Thus, we can only see the transactions coded to income and expense. Once you record the loan repayment, the liability account will be affected. That said, you'll see it in the balance sheet report.

Instead of capital repayment, you'll only see interest expense from the P&L report.

You can consult your accountant on the best process to handle these transactions. This way, we can ensure the accuracy of your accounts. You can utilize our accountant to look for one in your area.

To learn more about recording loans in QBO, you can visit this article: Set up a loan in QuickBooks Online.

To keep track of your business expenses and other transactions in QBO, I have this resource for you to review: Customize reports in QuickBooks Online.

I'm all ears if you need more help setting up loans or with any QBO-related concerns you may have. Stay safe, and more power to your business.

@bsubbiah23-gmail  RE: Now principal is not appearing in P&L but only in Balance Sheet .
How to have mortgage principal show in P&L

You can't. Payments to principal aren't an expense.

Generally, when something impacts only balance sheet accounts it will not impact the P&L, and shouldn't.