P&L anomaly findings

The P&L Anomalies category looks at activity in income and expense accounts. This article currently covers one check in detail and will be expanded to cover the rest of the category.

Non-sales entries in an income account

Flags entries in an income account that are not sales activity: expenses, checks, journal entries, credit memos, refunds and similar. These reduce reported revenue and are often a payment or refund coded to the wrong place. Invoices, sales receipts and customer payments are never flagged here, and contra-revenue accounts such as "Discounts given" are handled separately.

How the account is identified

QBO's General Ledger often names a sub-account by its last part only ("Plants and Soil" instead of "Job Expenses:Job Materials:Plants and Soil"). When that short name belongs to exactly one account, or every account sharing it is an income account, the entry is treated as income. When the short name is shared by an income account and an expense account, LedgerClean does not guess and leaves those entries out of this check, so an expense posted to the expense account of the same name is not reported as an income problem. The same rule applies in reverse to the check for deposits in expense accounts.

When a finding is wrong

Use the flag icon on the finding and say why. Flags go straight to the LedgerClean calibration queue.