When applying a customer filter to the income statement, some journal lines are not showing in the income statement. Also, some accounts are showing 0 expenses even if there are entries for that account in the journal entry.
This is because, in the journal entry lines, we can enter not only customers but vendors as entities. Maybe the Journal entry has a vendor with the same name as the customer as the line level entity. So these lines will not show up in the income statement.
This issue may exist with Vendor bills also. In vendor bills, we can select customers at the line level. But filtering income statements by customers, will not show this vendor bill. This happens because Vendor Bill records together with its transaction lines are bound with a Vendor Record, standard Customer Filter from the Financial Report will not pull out these transaction lines.
Solution – Instead of a customer filter, use the ‘Entity(Lines)’ filter in the reports.
Selecting a Name from this filter will let the report pull out transaction lines that are tagged to that specific Entity Name. Also, The Entity (Line) filter contains all entity names (e.g. Vendors, Customers, or even Employees). So make sure to select the correct entity in the filter