It sounds like you have the License and Permits set up as Income. To check please do the following:
1. Go to Accounting, Taxes and then Schedule Setup. 2. Scroll down to where you have Licenses and Permits and click on the drop down in the 3rd column. 3. Choose Add/Edit. 4. Select License and permits in the second box down. 5. What type does it show in the first box - Expense or Income? I'm guessing it shows Income. Change this to Expense then RECORD and Done.
Now look at your report again and see if it looks correct.