linking income and expenses

Welcome to the Community space, @chocolady9. Let me help share information on linking income and expense to your product and services. That way, you can see the profits it's made for your non-inventory items.

In QuickBooks Online, it’s easy to track how much you make and spend on each product or service. To keep track of your sales and spending, you need to set up your non-inventory item and choose the Income and Expense account. 

Here's how:

1. Go to the Sales menu, then select Products & Services.
2. Select New and choose Non-inventory.
3. Enter a Name for the product or service and a SKU, if you track them.
4. From the Category ▼ dropdown, select the category that best describes your product or service. Learn more about item categories.
5. If you sell the item, confirm the checkbox is selected for I sell this product/service to my customers. 
6. In the Description on sales forms field, enter a description. This is what your customers will see on their sales form.
7. Enter an amount in the Sales price/rate field.
8. Select the Income account ▼ dropdown and the account you want to use to track the sale. Tip: You can use an income account QuickBooks already set up for you, or select + Add new to create a new income account. Learn more about adding accounts to your chart of accounts.
9. In the Sales tax section, sales tax is applied by default based on location. 
10. Select I purchase this product/service from a vendor.
11. Add a description. This shows on bills, purchase orders, and other forms you send to vendors.
12. Add the Cost.
13. Select the Expense account ▼ dropdown and then the account you use to track the cost of things you sell.
14. Choose your preferred vendor.
15. When you're done, select Save and Close.

For more details on creating product and services item, you may open this article: Add product and service items to QuickBooks Online.

Once you created the transactions, you'll want to run the Profit and Loss report. This will show how much your business has spent and earned over a specified time. It also shows whether you've made a profit or a loss over that time. Just go to the Reports menu scroll down and choose Profit and Loss Detail report. 

For more information and advice on tracking your inventory in QuickBooks Online, refer to these articles:

• Set up and track your inventory in QuickBooks Online.
• Use reports to see your sales and inventory status.

To sum it up. Linking your revenue and expense will be easier with the inventory items set up. I'm always available if you have any further questions concerning inventory management. Enjoy your day.

i would like to know that how to tag the cost of sales of each income invoice from customer to know profit & loss of each customer.