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Uncategorized Income or Uncategorized Expense are Showing on the Profit & Loss Report

Two QuickBooks-created accounts, Uncategorized Income and Uncategorized Expense are showing on the Profit & Loss report unexpectedly.
 
Transactions have been recorded to these accounts. This could result from the following:
  • It is possible that transactions have been enter directly to these accounts.
  • The QuickBooks data file was converted from a Quicken data file containing A/R transactions that were recorded without assigning category to them. Thus, uncategorized payment and invoice amounts appear in QuickBooks P&L reports as uncategorized expenses and uncategorized income, respectively.
  • Customer and Vendor opening balances were entered from the New Customer or the New Vendor windows. To facilitate cash basis accounting, QuickBooks records these new balances to Uncategorized Income or Uncategorized Expense.
  • This can happen if your preference to require accounts is not checked. If not, then Items do not need to have income accounts entered on the Edit Item window. Sales of this item are recorded to Uncategorized Income.
  • The Item used on transaction(s) has the "Parent" account selected as the "Income Account" (or Expense) instead of one of the sub-accounts. Quickbooks does not know which sub-account to assign to and will assign it to "Uncategorized Income" (or Expense).

 

Solution Description

Set your "Require Accounts" preference:

  1. Log in to the data file as the administrator and in single-user mode.
  2. Select the QuickBooks Edit menu and then select Preferences.
  3. Select the Accounting icon in the list and then click on Company Preferences tab.
  4. Select Require accounts, and then click the OK button.

Review your Item List to assure there are no items pointing to the Uncategorized accounts or Parent accounts when there are sub-accounts.

You can see the transactions affecting Uncategorized Income and Uncategorized Expenses by running a QuickReport for the Accounts:

  1. Select the QuickBooks Lists menu and then select Chart of Accounts.
  2. Right-click Uncategorized Income or Uncategorized Expense.
  3. Select QuickReport.
  4. Set the report dates to All.
  5. QuickZoom (double-click) on the Journal Entry to recall it to the screen.

If you entered opening balances when you created new customers:

The Customer opening balances are entered as Invoices with an item called "Opening Balance." Edit this item and change the income account from Uncategorized Income to an appropriate account, perhaps Opening Balance Equity. Be sure to consult your accountant when selecting accounts.

If you have transactions affecting Uncategorized Income and Uncategorized Expense from any other cause:

From the Account QuickReport, QuickZoom (double-click) on the transaction and change the Uncategorized account to a more desirable account. Be sure to consult your accountant when choosing accounts.

If this solution does not resolve the issue, please review other available QuickBooks support options for additional guidance. You can also read and post messages relating to your issue on the QuickBooks Community forums.

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KB ID# SLN42605
8/20/2014 3:24:40 PM
PPRDQSSWS405 9102 Pro 2013 24b64d