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Change a revenue recognition schedule in QuickBooks Online

by Intuit• Updated 2 days ago

In QuickBooks Online Advanced, you can edit an existing revenue recognition schedule to adjust the service duration, update scheduled payments, or change an item's price. Whenever you make adjustments, your schedule automatically updates to reflect your changes.

Prerequisites

Before you can change a revenue recognition schedule, you must have:

  • Turned on revenue recognition.
  • Assigned a revenue recognition template schedule to one or more products or services.
  • Issued at least one invoice containing that product of service.

Change an existing revenue recognition schedule

  1. Go to All apps A bunch of numbers and letters on a tile wall., select Sales & Get Paid, then select Invoices (Take me there).
  2. Open an existing invoice that has the service item, or select Create invoice.
    Tip: To open an existing invoice, select View/Edit under Action column.
  3. Fill out your invoice, including a Service Date.
    • You can set a new price in the Rate field, but this will change the price of each payment in the schedule. If the new price is lower than the total amount recognized so far, it lowers the rates for future open months or automatically shows a negative recognition amount for the current month.
  4. Select Save.
  5. Select the View Revenue Recognition link for the service item.
  6. In the Revenue Recognition panel, select pencil icon Edit.
  7. Make the changes you wish to make to your schedule’s service duration or scheduled payments.
    • Service Duration: The new duration must be greater than the duration of posted entries, but less than 5 years.
    • Amount Recognized: You can change amounts to adjust the size of payments, as long as they add up to the total. The schedule automatically balances for open, unedited months. You can also manually remove negative recognition amounts.
    • Closed Books: You can only edit the duration or amount recognized for posted entries if they occur after your assigned closing date.
  8. Select Apply.

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