Thank you for reaching out to us, Chloe. I'd be happy to help clarify why your invoice is showing as a liability and why the purchase list displays a negative amount.
In QuickBooks, an invoice could appear as a liability if the income account for the items on the invoice has been mistakenly assigned to a liability account. This is common if the account selected isn't set up properly in your Chart of Accounts.
To ensure that invoices are categorized correctly:
- Double-check the income account assigned to the items on the invoice.
- Ensure that the items are linked to the correct income accounts under your Chart of Accounts.
Regarding the negative amounts on your purchase list, if what you’re referring to as “invoices” are vendor bills, this is due to them being posted to a liability account. In your purchases report, vendor bills that are categorized under liability accounts will appear negative because they decrease your liabilities.
To generate a more accurate purchase report:
- Ensure vendor bills are assigned to appropriate expense or COGS accounts, rather than liability accounts.
- If the bills need to remain in the liability accounts, you may want to run custom reports that focus on expense accounts to get a more accurate view of your purchases.
If you're unsure how to make these changes or need help reviewing your Chart of Accounts setup, you may want to consult with an accountant.
Moreover, you may want to check out this article to learn how to get the most out of your financial reports: Customise reports in QuickBooks Online.
Let me know if you need any further clarification, and I’d be happy to assist you further.
