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