(Using Departments for Discretionary Expenses in QBO) Part 3 - Special Reporting Using Discretionary Department

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This guide shows you how to generate a Profit & Loss statement where discretionary and non-discretionary expenses appear in separate columns and how to use filters to remove discretionary items from other reports.

Video

Steps

Part 1: Run a Profit & Loss by Department (Location)

1. In QuickBooks Online, go to Reports.

2. Select Standard reports.

3. Under Business Overview, choose Profit and Loss by Location.

4. The report will open with columns separated by department.

5. Set the Report period to the correct date range.

You should now see:

• A column for Discretionary expenses.

• A Not Specified column, which represents non-discretionary expenses that have not been assigned to a department.

Part 2: How to Filter by Department

You can also use the department as a filter in other reports. To do so:

1. Click the 'Customize' button in the report

2. Open the Filters section.

3. If you want to remove discretionary items from the report:

   1. Select Department.

   2. Change the condition to Not equals.

   3. Choose Discretionary.

4. If you want to show only the discretionary totals:
   
   1. Select Department.
   2. Change the condition to Equals.
   3. Choose Discretionary.