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M
matthewcramer-lc
September 20, 2024
Question

Sales receipts included as income within Profit & Loss report

  • September 20, 2024
  • 2 replies
  • 0 views

My profit loss report includes sales receipts I issue to clients. 

I do not want this to happen: it causes my income to be increased improperly.  It is a redundancy. 

How can set things up so my sales receipts are ** NOT ** counted as income?

 

Thank-you,

[full name removed]

2 replies

C
CamelleT
September 20, 2024

The Profit and Loss (P&L) report is a crucial financial document for any business. Let's figure out why sales receipts are creating a redundancy in your data, Matt.

 

Before proceeding, may I know which account your sales receipts and invoices are recorded in? This will help me understand where the duplication is happening.

 

Payment receipts being real-time transactions are recorded in an income account. They are also generally included in P&L reports as they represent income received at the time of sale.

 

Effectively managing how sales receipts are recorded and presented in the P&L report can ensure accurate financial reporting, avoid redundancy, and gain valuable insights. Additional details are highly appreciated so I can offer an accurate solution. If you have additional questions about running or customizing reports in QBO, feel free to post a reply, Matt. The Community and I are always around to extend help.

M
matthewcramer-lcAuthor
September 21, 2024

Thank-you,

So the sales receipts were deposited into a Business account...and yes: QuikBooks seemed to be treating them as income.

That said: I don't want QuikBooks to treat them as income. I'm not charging clients through QuikBooks, I'm charging them using an alternate application, and using QuikBooks to create and email the sales receipts.

 

This other application sends me the income from the charges--which QuikBooks records because it is synched with my bank. 

I am guessing I need to select a different "Deposit to" category for these sales receipts. The only one that appears possible is "Uncategorized Assets."

 

Please share any feedback!

Thank-you,

(removed)

R
RogelioL
September 21, 2024

Thank you for sharing further details about what happened with your sales receipt, Matt. Allow me to join this thread and provide clarification on why QuickBooks treated your sales receipt as income and how we can prevent your income from increasing.

 

To begin with, you don't need to choose a different category when creating a sales receipt. Regardless of the category you select, sales receipts are automatically recorded as income and categorized in an income account because they represent a point of sale.

 

The possible reason why your profit and loss increases is that you haven't matched the bank transactions from the application you're using and the sales receipt you've created in QuickBooks Online.

 

This being said, we'll need to match your bank transactions and sales receipt so we can resolve your concern:

  1. Go to the Banking menu and select the For Review tab.
  2. Find the bank transaction that matches the sales receipt.
  3. Click on the transaction to expand it and select the Find Match button.
  4. Select the sales receipt that matches the bank transaction.
  5. Click on Save to complete the match.

 

Additionally, you may want to check out this article to learn how to personalize your profit and loss report: Customize reports in QuickBooks Online.

 

Let me know if you have further concerns about managing your sales receipt. I'll be glad to assist you. Keep safe.

BigRedConsulting
BigRedConsulting
September 20, 2024

A sales receipt is a record of a cash sale, of a sale where payment is received at the point of sale - of income. How is counting it as income improper?

 

 

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