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Luluwawa
Level 1

Invoice

Hi, 

we are General Insurance Agency. we provided service to customer.

sometime we do collect premium on behalf of insurer, when I issue Invoice to customer, the premium captured at Revenue. However the premium is not our Revenue. How should I do it?

 

3 Comments 3
BettyJaneB
QuickBooks Team

Invoice

Hi there, @Luluwawa.

 

I'm here to share some steps on what's the best thing to do to handle your invoice transaction in QuickBooks Online.

 

You'll need to change the income account of the premium so it will be separated from the revenue. You can select your preferred account so the amount will be recorded accurately.

 

To do that:

  1. Go to Gear icon at the top.
  2. Select Products and Services.
  3. From the Action column of the appropriate item, select Edit.
  4. From the Income account ▼ drop-down, choose the account you want to use. 

If you're unable to see the account, make sure the account's detail type is Sales of Product Income.

 

Here's how to check the detail type:

  1. Go to Gear icon at the top.
  2. Select Chart of Accounts.
  3. From the Action drop-down of the account, select Edit.
  4. Change the detail type to Sales of Product Income if necessary.
  5. Select Save and close.

For more details about this process, please see this reference: Change the account for a product/service item.

 

 

I've also added this link that can guide you in tracking payments in QBO: Learn how to receive and record the accounting for invoice payments.

 

Let me know if you need more help in managing your accounts. I'll make sure you're all set. Have a great day!

Luluwawa
Level 1

Invoice

Hi BettyJaneB,

 

The insurance premium not our revenue / income. 

 

1. How can I create the invoice by uisng Account Type not Product/Services?

2. I dont want to premium to fall under revenue/ income.

Mich_S
QuickBooks Team

Invoice

Thank you for keeping us updated, @Luluwawa.

 

I'd be glad to give you ideas on what's the best thing to do to handle your invoice transaction in QuickBooks Online.

 

For your first question, we're unable to create an invoice using an account type. Instead, set up a product or service and add the specific account you want to use.

 

Here's how

  1. Click the +New option. Then select Invoice.
  2. From the Customer ▼ dropdown, select a customer.
  3. Select the due date.
  4. From the Product/Service column, select an account type instead. 
  5. Enter a quantity, rate, and change amount if needed.
  6. Select a Class option.
  7. Select Save and send.

Also, these are my suggestions for your second question. There are many options to do this but as you've described, this would be the best option I can offer.

 

You can create a list of parent customers who you create on behalf of. Under the appropriate parent customers, create sub-customers; the name of the people from who you're collecting the money.

 

Now create an invoice for the sub-customer. This time, you can consult your Accountant for proper guidance about the right account type and item name that you'll gonna use.

 

Instead of going to an income account, the bill that was created will go to a liability account and will show up on your balance sheet as a liability. Liability will reduce by paying your parent customer. 

 

Please feel free to read these handy articles for your reference:

Create invoices in QuickBooks Online

Record invoice payments in QuickBooks Online

 

Let me know if I can be of any extra help. Stay safe and have a great rest of your day!