There seems to be a quirk in my client's QBO acct. Although all her service line items on her invoices are assigned to income accounts, they are showing up as uncategorized income. Why is this happening? She's on an accrual basis.
Hi!
When changing a income account on a product & service item, a check box entitled, "Also update account in historical transactions" will be displayed. If this is missed at the time the account is edited, then it will only update the account for any new transactions going forward. You can repeat the step and have it go back and grab the historical transactions so that it also updates the report data.
See the article, "How do I change the account my product and service item is associated with? for the section, "If you have already changed the account, but have not changed the past transactions and want them changed".
I went back to the activity log of my client's QBO to find the edits I previously made. I clicked on each one and couldn't find the "Also update account in historical transactions" text or check box. I even reselected the income account for the service items and saw nothing to check.
Quick question for you on these Product & Service items. Do you have Track Quantity on Hand (for inventory items) turned on for the items in question?
I found out some new information on this today that might help explain why you are not seeing this check box.
If inventory tracking is used on a Product & Service item then the historical changes are automatically made based on the items Inventory Start Date.
All historical transactions (if any) BEFORE the "inventory start date" for the item are unaffected.
All historical transactions (if any) AFTER the "inventory start date" for the item are modified to use the new user-selected accounts.
I suggest contacting support so they can look into this further for you.
