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LManS2024
October 20, 2024
Question

P/L report

  • October 20, 2024
  • 1 reply
  • 0 views

I'm very green when it comes to accounting, this software, etc. However, I think I understand the concept of the relationship between income, expense, and profit/loss. 

 

When I run a P/L report in QB, it reports total income of $203k.

 

When I run a sales report by Product/Service, it reports sales of $386k.

 

Why are all of the sales note being accounted for as income in the P/L report?

 

Thanks to all who can provide information!!!

 

[Removed]

Land Management Solutions

1 reply

I
Ivan_G
October 20, 2024

Several factors can affect how income is shown on both P/L and Sales by Product/Service reports, LManS2024. I'm delighted to provide clarifications regarding this matter.

 

A sales report provides a complete view of your sales transactions, such as sales receipts, invoices, refunds, and credit memos. Meanwhile, the P&L report shows all transactions that are coded for are visible to the profit and loss account (income and expenses).

 

 

If you see any discrepancies between your sales and P&L report, here are some factors that cause this matter to occur:

 

  • The Reporting period of the reports doesn't match.
  • The accounting methods (Cash, Accrual) don't match.
  • Sales items are associated with incorrect sales accounts.
  • The P&L report includes data that doesn't use items. They are as follows:
    1. Expenses
    2. Bills
    3. Journal entries

 

These procedures should help resolve the difference between your P&L and Sales report:

 

Step 1: Verify and ensure the reports have the same periods and basis:

 

  1. Open each report and modify the Report period. Both reports should be in the same period.
  2. Configure the Accounting method to Accrual.
  3. Double-check the reports.
  4. If the discrepancies persist, proceed to Step 2.

 

Step 2: Ensure the items are tied to accurate accounts:

 

  1. Go to the Reports menu.
  2. Enter and select the Product/Service List in the Find report by name search bar.
  3. Click the Columns option and enable the Sales account full name columns.
  4. Review the associating accounts for each item.
  5. Correct all items with inaccurate accounts by clicking on the item and choosing the correct one.
  6. Double-check the reports.

 

If you still have issues with both reports' total amounts, I recommend following Step 3 of this link to review transactions with no items used: Profit and Loss report does not match a sales report.

 

Moreover, if you need further assistance handling your transactions in the program, you can also consider seeking advice from an accounting professional. They can help secure accurate entries and guide you with the proper categorization of your business transactions.

 

Finally, you may also use your reports in QuickBooks to track your cash flow in a given period. It helps provide a complete view of your current or future business finances.

 

I'm still here whenever needed. Just tag me on this thread if you have more questions about how your data are treated or reflected in your reports. I'll ensure to take care of you every step of the way.

L
LManS2024Author
October 21, 2024

Ok, here's a for instance:

 

I have a specific product that isn't being tracked as sales on the P/L (I can tell after looking at the detailed report). That product in particular accounts for $136k in income. How would I go about making sure that it is included as income on the P/L? Can you walk me through the steps?

 

Thank you.

L
LouiseG12
October 21, 2024

Yes, LManS2024. To ensure a specific product appears on the Profit and Loss (P/L) report in QuickBooks Online (QBO), here are the detailed steps for you.

If your specific product isn’t reflected as sales on the P/L report, one possible reason could be the accounting method—either Cash or Accrual—applied to both your P/L and Sales reports. It's essential to understand that this significantly affects when sales are recognized in your reports.

For additional details on how cash and accrual basis impact reports, you can visit this link: Choose between Cash and Accrual Accounting Methods in QuickBooks Online.

On the other hand, ensure that all income generated from products and services should be recorded in a designated Income-Sales or Expense account so that it appears in the Profit and Loss report. 

When generating both your P/L and Sales reports, apply the same filters to ensure the numbers align correctly.

Here’s how to do it:

1. Navigate to Reports in the left sidebar.
2. Choose your desired report.
3. In the Accounting method section, select either Cash or Accrual for both reports.
4. Click on Run report.

After pulling up the report, it should appear as shown in the attached sample screenshot below.

 

 


To learn more about personalizing your reports in QBO, you can visit to this article: Customize reports in QuickBooks Online.

Feel free to hit that Reply button if you have any additional questions about viewing your reports' data in QBO. We'll be here to lend a hand.

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