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Adjust for Uncategorized Income and Uncategorized Expenses on an accrual basis

Why adjust uncategorized income and expenses?

When you enter unpaid balances for customers and vendors when you set up your company, QuickBooks assigns the balance to accounts called Uncategorized Income and Uncategorized Expenses, respectively. If you keep your books on an accrual basis, you probably should make an adjustment so that all the income and expenses from before your start date are treated the same as income and expenses after the start date, regardless of whether payment has occurred.

The procedures in this topic set the amounts for Uncategorized Income and Uncategorized Expenses to zero. After that you need to enter adjustments as described in Adjust income and expense amounts if your start date is not at the end of your fiscal year.

To adjust for uncategorized income

  1. Go to the Lists menu and click Chart of Accounts. Shortcut

  2. Select the income account called Uncategorized Income.

  3. Click Reports at the bottom of the list and click QuickReport.

  4. If the report doesn't list any amounts, change the Dates field to All.

  5. Write down the total amount for all the customer opening balance transactions. (You may have to scroll to the bottom of the report.)

  6. Return to the Chart of Accounts window and select the equity account called Opening Bal Equity.

  7. Click Activities at the bottom of the list and click Use Register.

  8. In the empty transaction at the bottom of the register, enter a transaction.

    • Enter your start date.

    • Click the Account drop-down arrow and then click Uncategorized Income.

    • In the Increase field, enter the total amount from the Uncategorized Income QuickReport.

  9. Click Record to record the transaction.

To adjust for uncategorized expenses

  1. Go to the Lists menu and click Chart of Accounts. Shortcut

  2. Select the expense account called Uncategorized Expenses.

  3. Click Reports at the bottom of the list and click QuickReport.

  4. If the report doesn't list any amounts, change the Dates field to All.

  5. Write down the total amount for all the vendor opening balance transactions. (You may have to scroll to the bottom of the report.)

  6. Return to the Chart of Accounts window and select the equity account called Opening Bal Equity.

  7. Click Activities at the bottom of the list and click Use Register.

  8. In the empty transaction at the bottom of the register, enter a transaction.

    • Enter your start date.

    • Click the Account drop-down arrow and choose Uncategorized Expenses.

    • In the Decrease field, enter the total amount from the Uncategorized Expenses QuickReport.

  9. Click Record to record the transaction.

See also

KB ID# H_SETUP_TASK_ADJUST_UNCATEGORIZED_INC_EXP_ACCRUAL
9/27/2016 3:25:37 AM
QYPPRDQBKSWS09 9138 Pro 2017 62a649