Set up a product or service's revenue recognition schedule

Learn how to set up an automatic schedule for a product or service to help with revenue recognition in QuickBooks Online Advanced.

Prerequisites

Before you can set up a revenue recognition schedule, you need to turn on revenue recognition in your settings and create or select a suitable template to apply.

Assign a template to your product or service

To set up a revenue recognition schedule for a product or service, assign the appropriate template. This divides the total cost of the item on any invoice with it into regularly scheduled payments.

1. Go to Advanced accounting and select Revenue recognition (Take me there).
2. Select Manage settings dropdown, then Manage templates.
3. From the Manage templates tab, go to the Assign product/service tab.
4. Select Assign template to products/services.
5. In the Products/service dropdown, select a service item, or add a new one.
6. In the Revenue recognition template dropdown, select either a standard template, or one you created.
7. In the Liability account dropdown, select a liability account, or add a new one.
8. When finished, select Save.

You can now create invoices with a revenue recognition schedule applied by adding the product or service to them.

Even after adding a revenue recognition template, you can change the income account or a service item, or delete a template as needed.

Run the Revenue Recognition report

You can see the Billed and Recognised amounts in the Deferred Recognition detail for each column. 

1. Go to Reports (Take me there) and select the Standard reports tab.
2. In the search bar, search for and open Revenue Recognition Report or Revenue Recognition Report (Beta). 
3. Customise or filter the report as you see fit.

Related links

• Understand revenue recognition in QuickBooks Online
• Add product and service items to QuickBooks Online
• Create invoices in QuickBooks Online
• Change a revenue recognition schedule in QuickBooks Online
• Issue credit or refunds for an invoice with revenue recognition in QuickBooks Online
• Add an account to your chart of accounts in QuickBooks Online
• Customise reports in QuickBooks Online using modern view