diff --git a/src/handlers/list-xero-profit-and-loss.handler.test.ts b/src/handlers/list-xero-profit-and-loss.handler.test.ts
new file mode 100644
index 00000000..68504a24
--- /dev/null
+++ b/src/handlers/list-xero-profit-and-loss.handler.test.ts
@@ -0,0 +1,68 @@
+import { beforeEach, describe, expect, it, vi } from "vitest";
+
+const authenticateMock = vi.fn();
+const getReportProfitAndLossMock = vi.fn();
+const getClientHeadersMock = vi.fn(() => ({ "x-test": "header" }));
+
+vi.mock("../clients/xero-client.js", () => ({
+  xeroClient: {
+    tenantId: "tenant-123",
+    authenticate: authenticateMock,
+    accountingApi: {
+      getReportProfitAndLoss: getReportProfitAndLossMock,
+    },
+  },
+}));
+
+vi.mock("../helpers/get-client-headers.js", () => ({
+  getClientHeaders: getClientHeadersMock,
+}));
+
+describe("listXeroProfitAndLoss", () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  it("forwards standardLayout and paymentsOnly to the SDK in the correct positions", async () => {
+    const report = {
+      reportName: "Profit and Loss",
+      reportDate: "2026-06-12",
+      rows: [],
+    };
+
+    getReportProfitAndLossMock.mockResolvedValue({
+      body: { reports: [report] },
+    });
+
+    const { listXeroProfitAndLoss } = await import(
+      "./list-xero-profit-and-loss.handler.js"
+    );
+
+    const result = await listXeroProfitAndLoss(
+      "2026-01-01",
+      "2026-01-31",
+      1,
+      "MONTH",
+      true,
+      true,
+    );
+
+    expect(result.isError).toBe(false);
+    expect(result.result).toBe(report);
+    expect(authenticateMock).toHaveBeenCalledTimes(1);
+    expect(getReportProfitAndLossMock).toHaveBeenCalledWith(
+      "tenant-123",
+      "2026-01-01",
+      "2026-01-31",
+      1,
+      "MONTH",
+      undefined,
+      undefined,
+      undefined,
+      undefined,
+      true,
+      true,
+      { "x-test": "header" },
+    );
+  });
+});
diff --git a/src/handlers/list-xero-profit-and-loss.handler.ts b/src/handlers/list-xero-profit-and-loss.handler.ts
index e19a7bfc..9fc0c1bf 100644
--- a/src/handlers/list-xero-profit-and-loss.handler.ts
+++ b/src/handlers/list-xero-profit-and-loss.handler.ts
@@ -65,6 +65,7 @@ export async function listXeroProfitAndLoss(
       toDate,
       periods,
       timeframe,
+      standardLayout,
       paymentsOnly,
     );
 
@@ -88,4 +89,4 @@ export async function listXeroProfitAndLoss(
       error: formatError(error),
     };
   }
-} 
\ No newline at end of file
+}