Now You Know: Sales by Customer vs. Income by Customer Reports
Do you know the difference between a Sales by Customer and an Income by CustomerReport? Or when you would you use one over the other?
With so many powerful reporting tools, it can be hard to know which is which – and which one you should use when. QuickBooks expert (and awesome content creator) @vpcontroller recently explained the differences between these two seemingly similar reports with the community:
Sales by Customer Report = generated from sales forms (Invoice and Sales Receipt) only
"In QBO, Sales by Customer Reports summarize data from all sales transactions (Customer Sales) displayed on the Sales Dashboard under “All Sales” tab. Sales Reports will also include Credit Memos and Refund Receipts issued to customers.
If downloaded transactions from bank feeds were added, but not matched to revenue income account tags, they will not show up in a Sales by Customer Reports. However, they will show up in Income by Customer Report as 'Bank Deposits' which is coded to General Ledger Income Account. These transactions will also not show up as sales in the Sales Tax Center since they were not created as Customer Sales in QBO.”
Income by Customer Report = sales forms + non-sales forms (income deposits without sales forms)
"In QBO, Income from Customer Reports will show everything coded to General Ledger Income Accounts, including transactions directly or indirectly linked to Product/Service Item codes.”
When would you use one report over the other?
Depending on how you record sales transactions in QuickBooks Online, you may need to review and reconcile both reports (Sales from Customer and Income from Customer), especially if you receive income that isn't recorded through a sales form or need to report gross sales to external stakeholders.
Now you know.
Thank you @vpcontroller for that detailed explanation. Learn more expert tips on vpcontroller’s website, NewQBO.com.
Join the conversation
Which reports do you usually pull to track money from specific customers?
Re: Now You Know: Sales by Customer vs. Income by Customer Reports
As well as the reports mentioned above I sometimes use Classes to track income/expenditure by customer. For example I have a client that builds houses. Everytime he incurs an expense or earns income from a paticular client he has assigns a class which is set up as their individual addresses. This gives a clear breakdown of exact costs relating to that build only. You can also use Location in a similar way. There is also the new feature of Projects which can be turned on in the Account and Settings under the Company Cog which is useful for similar functionalities.