Hi and thanks in advance for the help!
I'm working on a project where the client has been billed for the total amount of the project, but they will pay weekly over 5 months to complete the payments as I work on the project. There will be just one initial invoice.
This is set up as a Project in QBO, and I'd like to add the total invoice (lets say for 50k), but be able to understand I will not expect the full 50k *this month*, but rather track the even weekly payments as they come in, against my expenses on the project. This is purely for my own organization and understanding of my income situation. Any help appreciated!
It's great that you're using projects to streamline the recording of your various sources of income under specific customers. This advanced function makes it simple to track exactly how much money you're making for a specific job. Based on your description, it sounds like you want to split up the income from an invoice as the payments become due. This can be difficult under accrual accounting, the income is recorded on the invoice date. I'm confident QuickBooks Online's progressive invoicing feature will suit your needs perfectly. I'll be happy to help you set this up.
An important thing to consider before using progressive invoicing is the effect on sales tax. This method works best when the tax amounts are claimed gradually. It just takes a few easy steps to activate this option:
Once that's set up, you'll be able to create an estimate for the full amount, and gradually invoice portions of it as they become receivable. The estimate won't affect your sales tax return or your income accounts until it's invoiced. You can learn more about this great function in this handy article: Set up and send progress invoices in QuickBooks Online
If you're unsure how the tax implications should be considered, your accountant is the best person to ask. You can easily invite your accountant as a user to approach this together. To search for a pro in your area, simply head to the My Accountant tab in QuickBooks Online then click on Find a pro to help.
I'm here for you. Feel free to let me know if you have any other questions.