One common problem on a Profit & Loss statement is when both parent and sub accounts exist, and some expenses are incorrectly assigned to a sub account when it should belong to the parent account (or vice versa).
While you could fix these transactions one by one, using the “Reclassify Transactions” tool is a faster way to do it. Select the “Settings” button and then choose “Reclassify Transactions” under “Tools.”
Then select the account that the transactions are currently categorized to. Select the checkbox for any transaction you want to edit, and then select “Reclassify.” From this screen, you can change the account, class, and location assigned to the transactions you selected.
This is a great tool if you just turned on classes or locations, and you need to assign a class or location to a lot of transactions at the same time. Choose the changes you want to make, and select “Apply.” QuickBooks makes all of the selected changes for you so you don’t have to correct the transactions one at a time.