We are accrual based, but our billing methods are to obtain 50% down before a project begins and then we bill for the remaining 50% upon project completion. So the issue that I am running into is that when I go to create an invoice in QBO to get the customer to pay for the initial 50% payment, QBO automatically books revenue and a receivable for the amount invoiced, when in fact there should be no entry at date of invoice, but when the payment is received there should be a debit to cash and a credit to advance customer payments (unearned revenue). Then as progress happens on the project revenue is credited and the unbilled account is debited proportionally until 50% of the project is reached, and then the entry should be to debit AR and credit revenue, bill the remaining 50% upon completion of the project and book a debit to cash and credit to AR upon receipt of the last 50%. Right now I am having to do a lot of manual entries to reverse the effects of QBO automatically making entries when I create an invoice, is there anyway around this? I know there has to be, but I can not figure out how to get there. Thanks in advance!
