Change a revenue recognition schedule in QuickBooks Online

Learn how to change an existing revenue recognition schedule in QuickBooks Online Advanced.

Once you’ve created a revenue recognition schedule, you can edit it. For example, you can adjust the service duration period for an item at a transaction level, adjust an entire schedule, or make changes to an item’s price. Each time you make changes, your revenue recognition schedule automatically adjusts to reflect the 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 Sales and 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 may set a new price under Rate. However, this price will change the price of each payment in the schedule. If the price is lower than the total amount recognised until now, it'll lower the rates for future open months. If the price is lower than the total amount recognised until now, it'll automatically show a negative recognition amount for the current month.
4. When you’re done filling out your invoice, select Save.
5. Select the View Revenue Recognition link for the service item.
6. In the Revenue Recognition panel, select Edit.
7. Make the changes you wish to make to your schedule’s service duration or scheduled payments.
   • If you change the Service Duration, the new duration must be greater than the duration of posted entries, but less than 5 years. 
   • You can change one or more amounts under the Amount Recognised column to adjust the size of payments, as long as it adds up to the total. By default, the schedule automatically balances for open, unedited months.
   • You can manually remove negative recognition amounts in the Amount Recognised column.
   • You can only edit posted entries’ duration or amount recognised if they occur after the date you close your books assigned in your settings.
8. When you’re done, select Apply.

Related links

• Close your books in QuickBooks Online
• Understand revenue recognition in QuickBooks Online
• Set up a revenue recognition schedule