We use Quickbooks Enterprise.
We have customers that purchase prepaid service hours at a discounted rate. We need a way to track in QB. Here is our current method - which affects the balance sheet in previous years when hours are used.
1. Invoice for prepaid hours
2. Receive payment and post
3. Generate a credit invoice for the prepaid hours.
4. Manually reduce the credit invoice as hours are used. (This changes the balance sheet back to the date of the original credit invoice.) Not a GAAP approved process.
Note: Because we use sub- jobs (i.e. structure = Prepaid Service, sub job PS45xx (invoice for hours used), credits on the main account will not apply to sub jobs.
Finding references to bundling for QBO but nothing for QB Enterprise.
Thanks for any assistance.
Hello there, @roseb1.
If you accept upfront deposits or retainers for products or services, there are several steps you need to take to account for that money.
Before you can accept upfront deposits or retainers, you'll have to set up a current liability account for them. This is because retainers are liabilities, not income, even though you deposit the money into your bank account.
To create a liability account:
Once done, you'll have to create an item to use when recording upfront deposits or retainers. Here's how:
You can now use this item to record upfront deposits or retainers you accept. Follow this article under Step 3: Record upfront deposits or retainers you receive.
Also, I encourage checking our Help articles page to learn some tips and tricks in managing your QBDT account. From there, you can read great articles that can guide you through the steps by steps process.
Don't hesitate to drop a comment below if you have other concerns. I'm always happy to help. Take care!
Consider having a time tracker app to let you set a budget or hours maximum (e.g to match with the prepaid hours) and get alerts when you’re reaching limits. You may integrate the app with your QB Desktop file.
Thank you for the response.
All of the setup you listed has been done previously.
Our issue with it is that the credits will not apply to new invoices apparently because we use jobs in our invoicing. The credit on the master account/prepaid invoice will not apply to a new invoice under a new job number.
i.e. If we have a customer that has a credit under a job Prepaid Service Hours. Then we add a new job for a new prepaid service call # S4606 - the credit on Prepaid service Hours will not apply to S4606.
This is what we need a remedy to.
The Community has got you covered, @roseb1.
Let's ensure that the Automatically apply payments option is checked. To confirm, refer to these easy steps below:
Once finished, attempt to receive a payment for the new invoice again. For more info about the process, please see this article: Give your customer a credit in QuickBooks Desktop.
I also encourage you to visit our QBDT Help page. From there, you can browse articles or get some ideas from other QuickBooks users and experts. This way, you'll get more insights that can help you with your accounting tasks
If you have further questions about this post a comment below. I'm always here to help you. Have a good one.
Thanks for keeping us updated, roseb1.
A data integrity issue could be the reason why it won't apply between different jobs. In this case, let's run the Verify Rebuild Data tool that helps identify and repairs data issues within your company file. Here's what you'll need to do:
For more details about the Verify/Rebuild process, check this article: Verify and Rebuild Data in QuickBooks Desktop.
Once done, check to see if everything is working now.
You'll also want to visit this link for more troubleshooting steps: Fix data damage on your QuickBooks Desktop company file.
Please let me know how things go on your end. I want to ensure this gets resolve for you. Take care.