I have an expense that is showing up as Accounts Receivable on my Profit and Loss and I dont know how to correct it. It happened while issuing an invoice.

I'll help you accurately record the transaction in QuickBooks Online (QBO), so you'll have accurate data on your report, Jax65.

If the product or service item you've selected on your invoice is associated with an expense account, that invoice will be visible as an expense transaction in your Profit and Loss (P&L) report. To fix this accordingly, let's edit the product and service item you've chosen for that invoice and replace it with an income account.

Here's how:

1. Go to the Gear icon and select Products and services.
2. Locate or enter the service item on the Find products and services search bar.
3. Click the Edit button under the Action column.
4. Make sure to choose any Income account from the Income account dropdown. Then, tick the Box icon beside the Also update this account in historical transactions section.
   
5. Once done, hit Save and close.

After this procedure, the invoice will move from the Expense to the Income section of your P&L report.

I'll also provide this article to help you input customer's payments for their existing invoice. It aids you in accurately entering the transaction in the system and having accurate data in QuickBooks: Record invoice payments in QuickBooks Online.

I'm always here if you have more queries about your invoices or any transactions that affect your P&L report. Just leave a reply to this thread so I can assist you promptly. Take care.