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Billing up front for a few months work

We tend to bill for either a quarterly, bi-annual or annual service to some extent up front.  However we want to recognise the income in the accounts on a monthly basis as we earn it.

 

At the moment we set up the service so that it goes to Deferred Income rather than to Sales. 

 

When we raise the invoice it all then stays in the Balance Sheet (debit Debtors as they owe us money and credit Deferred Income).

 

At the same time as raising an invoice we also set up a recurrent journal so that every month part of the invoice is moved from Deferred Income to Sales (debit Deferred Income and credit Sales) so that by the end of 3/6/12 months Deferred Income is emptied out, sales reflects the monthly income and there is only one invoice.

 

We are new to QuickBooks and I think it will work but wondered if there was a simpler solution?

 

Any chance QuickBooks could create a "subscription" invoice type so you enter amount, period that it covers and it automatically set up the journal etc. in one entry rather than two?

Solved
Best answer 03-07-2019

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QuickBooks Team

Re: Billing up front for a few months work

Hello richard11,

 

That would probably be your only option - we do not have a subscription invoice type at the moment, you could suggest this through the Feedback option under the cog wheel so the developers can look into implementing this in the future.

 

Thanks,

 

Talia

View solution in original post

1 REPLY 1
Highlighted
QuickBooks Team

Re: Billing up front for a few months work

Hello richard11,

 

That would probably be your only option - we do not have a subscription invoice type at the moment, you could suggest this through the Feedback option under the cog wheel so the developers can look into implementing this in the future.

 

Thanks,

 

Talia

View solution in original post