Project tool in Quickbooks used for an interior designer. Is there a way to record income received NOT as a sale and not affecting P&L, yet record in Projects?

Yes, Kayne. You can record the income received by creating an invoice or sales receipt. Let me provide some information about this matter.

Once you create an invoice or sales receipt transaction in QuickBooks Online (QBO), the impact on the Profit and Loss report is determined by the specific accounts of the product and services you assign to the item. The revenue and expenses linked to the transaction will be reflected in the Profit and Loss report based on the accounts you use.

If you want to change the income account for any of your product or service items. Here's how:

1. Go to the Gear icon and select Product and Services.
2. Locate the item and select Edit.
3. From the Income account dropdown, choose the account you want to use. 
4. Click Save and close.

For more information, you can visit this article: Change the account for a product or service in QuickBooks Online.

When selecting an account to link with the transaction, I recommend seeking advice from your accountant to ensure that the appropriate account is chosen based on the specific nature of the transaction and its impact on your financial records.

Moreover, feel free to visit these articles for guidance if you to want add more details to your report and keep your current settings inside the program:
 

• Customise reports in QuickBooks Online
• Memorize reports in QuickBooks Online
   

You're still welcome to comment back if you have more questions in mind or need anything. I'll keep an eye out for your reply. Have a good one!