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MLom
Level 3

QBO: Income Reclassification on Posted Mixed Invoices

Hi,

In QuickBooks Online, posted invoices with mixed Product/Service line items appear to lock income at the item level. When those items were mapped to Uncategorized Income, the Reclassify Transactions tool cannot reallocate income, and batch reclassification is not available.

 

Rules do not override invoice line income, and journal entry workarounds compromise AR integrity.

 

Has anyone identified a supported method to reallocate income for historical posted invoices with mixed items, or is this a confirmed system limitation with no accountant-level workaround?

 

Thanks in advance for any insight.

Solved
Best answer a week ago

Best Answers
Erika_K
QuickBooks Team

QBO: Income Reclassification on Posted Mixed Invoices

Let me share further details about changing the income account for invoices with Product/Service line items using the reclassify tool, MLom.

 

QuickBooks Online (QBO) assigns the income account based on the specific Product/Service item on a posted invoice. Once the transaction is saved, the income account is locked as part of the data, following QBO's design for handling transactions.

 

Nevertheless, we encourage you to share your ideas with our Product Development Team about adding the option to change the income account for posted transactions through the reclassify tool. Your suggestions are important and help us improve QuickBooks for everyone. 

 

Here’s how you can submit your feature recommendation:  

 

  1. Click the Gear icon in the upper-right corner.
  2. Under the Profile column, select Feedback.
  3. Describe your suggestion or idea.
  4. Click Next to submit.

 

Stay informed about the latest product developments by regularly checking Intuit's Product Updates webpage.

 

Don't hesitate to reach out if you need assistance with QuickBooks-related questions.

View solution in original post

3 Comments 3
ShangY
QuickBooks Team

QBO: Income Reclassification on Posted Mixed Invoices

Hi there, @MLom. I appreciate you taking the time sharing these details and I understand you need to reallocate income on those posted invoices.
 

In QBO, Once an invoice is posted with Product/Service items, the income account is locked at the item level and cannot be changed using the Reclassify Transactions tool or batch updates. The tool can only modify classes on these transactions, not the accounts themselves.

And you're right. Journal entries aren't recommended for this situation, as they can affect your Accounts Receivable aging and customer balance reports.
 

However, we have a workaround for this. You can edit the Product/Service item to map to the correct income account going forward or you can manually edit each invoice if it's still within the edit window and not linked to payments.
 

You can also use Classes to categorize and filter reports if you need to separate income without changing your account. But before doing so, ensure to turn on Classes feature in your Account and settings. For tips on how to manage the Class feature, feel free to read through this article: Create and manage classes in QuickBooks Online.


Let us know if you have further concerns.

MLom
Level 3

QBO: Income Reclassification on Posted Mixed Invoices

Thank you ShangY for your response.

Something to think about this issue. I don't try to change the invoice posted or A-R. I just want to change the account where the transactions were posted. This feature works in the "behind the scenes."

Erika_K
QuickBooks Team

QBO: Income Reclassification on Posted Mixed Invoices

Let me share further details about changing the income account for invoices with Product/Service line items using the reclassify tool, MLom.

 

QuickBooks Online (QBO) assigns the income account based on the specific Product/Service item on a posted invoice. Once the transaction is saved, the income account is locked as part of the data, following QBO's design for handling transactions.

 

Nevertheless, we encourage you to share your ideas with our Product Development Team about adding the option to change the income account for posted transactions through the reclassify tool. Your suggestions are important and help us improve QuickBooks for everyone. 

 

Here’s how you can submit your feature recommendation:  

 

  1. Click the Gear icon in the upper-right corner.
  2. Under the Profile column, select Feedback.
  3. Describe your suggestion or idea.
  4. Click Next to submit.

 

Stay informed about the latest product developments by regularly checking Intuit's Product Updates webpage.

 

Don't hesitate to reach out if you need assistance with QuickBooks-related questions.

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