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T
Tom208
February 15, 2024
Question

Customer invoice

  • February 15, 2024
  • 1 reply
  • 4 views

I am trying to invoice a client for Royalty fees, and have the income show up as Royalty Fees in other income on the Profit & Loss.

i had set up royalty fee as a Service. 
I set up category as Royalty fee. I checked that I sell this to customers.

i linked the income acct to royalty income. 
However, the income shows up as “Services” under income on the P&L?

What am I doing wrong?

thanks all for any help provided.

1 reply

J
JuliaMikkaelaQ
Level 2
February 15, 2024

I appreciate the detailed steps you've shared for recording royalty fees, @Tom208. Let's work together to fix this so you can record the customer invoice and see the royalty fees under Income in the Profit & Loss report.

 

In QuickBooks Online, the data that will show on the reports are based on the data entered in the program. Thus, let's make sure that everything was recorded accurately and correctly. Since you're seeing Services in the report, I recommend reviewing the account name for your Royalty fees in the Chart of Accounts. Here's how:

 

  1. Click the Gear icon, then select Chart of Accounts.
  2. Enter the account name in the Filter by name or number field.
  3. Review its Account Type and the Detail Type. 
  4. In the Action column, select Edit if you want to change the name, then click Save.

 

 

If you verified that the account name is correct, let's check the service item to verify if the income account you assigned is the Royalty Fee income account.

 

Then, when running the report, you'll have to ensure to set the appropriate reporting date or accounting method to show all related income accounts. Also, you can click the amounts on the report to check if this is related to the royalty fees. 



In addition, you can find a variety of ways to run and customize your reports in QuickBooks Online by referring to the following articles:

 

 

You can also record the invoice payments once you receive them from your customer to mark the existing invoice as paid. 

 

If you need further assistance or have any other questions, please don't hesitate to reach out. We are here to help and provide support. Have a wonderful day!

T
Tom208Author
February 15, 2024

Thank you for your reply. 
Where do I find the categories to edit? I cannot see a way to edit the categories? I think that is where the issue is?

Fyi- the royalty account is set up ok, but still trying to find the disconnect?

Bryan_M
Bryan_MQuickBooks Team
QuickBooks Team
February 16, 2024

Hi there, @Tom208.

 

Let me help you edit categories of your Royalty fee so it won't show in Profit & Loss reports as Services under Income.

 

To change the category you'll need to go to Product & Services and edit the Income account you assigned to it. Here's how:

 

  1. Go to Sales.
  2. Choose Products & services.
  3. Look for the Royalty fee service. Then, click the Edit icon below the Action column beside it.
  4. A page on the right side will pop up. Scroll down and in the Income account, select Royal Fees.
  5. Once done, click Save and close.

 

After that, we'll go to the Chart of accounts and edit each category of the account. You can follow the steps below:

 

  1. From the Transactions tab on the left navigation, select Chart of accounts (COA).
  2. Look for the Royal Fees account in the search field.
  3. Once it shows up, click the dropdown icon below the Action column and on the side of the Run Report tab. Then, pick Edit.
  4. Choose the correct option in the Save account under and Tax form section tabs. The Account name should be Royalty Fees.
  5. Scroll down, and a preview of what you'll view in the Profit & Loss report will show. Ensure that Royal Fees' name should have a blue colored box since this will show in the report.
  6. Once done, click Save.

 

Lastly, we'll need to undo payments made and delete and recreate the invoices under Royalty fees since the changes will only take effect on future transactions. This will help show the correct Income account in the Profit & Loss report.

 

On top of that, I recommend reaching out to your accountant before or while performing the steps above because this involves changing account categories that might affect your book balance.

 

 

If you have an account in the COA that you no longer use, you can read this article to help you decide what to do with it: Make an account inactive on your chart of accounts in QuickBooks Online.

 

Leave a comment below for additional questions about managing your accounts and transactions. I'll be willing to help. Keep safe and have a good one.

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