Question

Why do my "Other Expenses" show up as negative "NET OTHER INCOME"?

Forum|Forum|1 year ago
November 19, 2024
2 replies
64 views

How do I fix this and get a normal P&L report?

QuickBooks Online

QuickBooks Team

The negative balance in the Net Other Income section of your Profit and Loss report is a result of how the items are categorized and displayed, bvnd1984. Let me explain how QuickBooks organizes this data in your financial reports.

When recording transactions, make sure they are categorized properly. Regular operating expenses should be categorized under Expenses, while non-operating expenses (like interest expense, depreciation, etc.) should go under Other Expenses.

You'll want to open each transaction and check if it was posted to the correct category. This way, you can ensure that your books and reports are accurate and up-to-date. Here's how:

Select Reports from the sidebar menu.
Open your Profit and Loss report.
Set the appropriate reporting date, then select Run report.
Click the amount of your Net Other Income.
This will open the Profit and Loss Detail report.
Double-click each transaction to open it, then make sure that it's posted to the correct account.
Make the necessary changes if applicable.

To guide you in customizing your reports in QuickBooks, see this article: Customize reports in QuickBooks Online.

Additionally, I'll be sharing these links that will guide you in saving your customization settings and reconciling them to review your accounts in QuickBooks:

Feel free to reach out if you have any additional questions regarding the Profit and Loss Report or any other matters in QBO. We're always available to assist you. Stay safe.

Rainflurry

Level 11

@bvnd1984

Your other expenses are totaling to negative net other income because you don't have 'Other income' to offset them. If those other expenses are not truly considered other expenses (other expenses are expenses that are unrelated to the primary operations of your business), then they should be reclassified to operating expenses. To do that, assign those costs to an expense account, not an other expense account.

K

Kilroy1

Neither of these responses answer the fundamental question (that I also have) and that is why does 'Net Other Income' show as a credit balance when every other expense subtotal on the Income Statement shows as a debit balance. Since "Net Other Income" shows as a negative number, this causes me to have to shift gears in my head when looking at the Income Statement. As I look down the Income Statement, I am thinking 'debit' 'debit' 'debit' and I see the credit balance for net other income and I think 'credit, no, wait a minute, that negative number means 'subtract'. The example above shows a debit $13k right above a credit $13k, to me anyway.

Rainflurry

Level 11

@Kilroy1

"why does 'Net Other Income' show as a credit balance when every other expense subtotal on the Income Statement shows as a debit balance."

'Net Other Income' isn't a subtotal of expenses; it's the net of Other Income and Other Expenses. The subtotal of other expenses, 'Total Other Expenses', is a debit balance of $13,846. In this case, the OP has no Other Income, so 'Net Other Income' is $13,846 ($0 Other Income - $13,846 Other Expenses), a debit balance.

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