Can we start the revenue recognition schedule prior to the client invoice

Hi, @JustineEFI. i can provide the necessary information to answer your queries regarding the revenue recognition in QuickBooks Online (QBO).

Certainly, you can begin the revenue recognition before issuing the client's invoice. The revenue recognition ought to be linked to products and services, not to an invoice. Please ensure that it's already configured in your QuickBooks account. 

You can follow the steps below.
 

1. Navigate to the Manage templates tab and go to the Assign product/service section.
2. Click on Assign template to products/services.
3. From the Products/service dropdown, select an existing service item or add a new one.
4. In the Revenue recognition template dropdown, choose either a standard template or the one you've created.
5. From the Liability account dropdown, select an existing liability account or add a new one.
6. Once completed, click Save.

Afterward, make sure to select these items when making an invoice. Please note that the Service Date on the invoice will initiate the Revenue Recognition Schedule in QBO.

For further details, you can visit this article: Set up a revenue recognition schedule.

You can run the Revenue Recognition report and customize its data to track the billed and recognized amounts in the future. 
 

I'm available around the clock to provide a timely response if you have any other questions about handing projects or sales transaction. Simply hit the Reply button below.

@MoiraskyeT, thank you for the information. Sorry, I'm a bit confused, you stated "you can begin the revenue recognition before issuing the client's invoice", but then stated "Please note that the Service Date on the invoice will initiate the Revenue Recognition Schedule in QBO."; sounds like Rev Rec does not begin until the invoice is created with a service date. I am wanting to recognize revenue earned (not paid or invoiced) before the client is invoiced for the service. If the Rev Rec Schedule is not initiated until the invoice is created, then I believe the answer to my question is NO, we cannot start recognizing the revenue until the invoice is created and the Service Date is entered. 

Given the above, here is a hypothetical: can we create an invoice dated in the future (say September 2025) with a Service Date starting now (December 2024)? We would not send the invoice to the client until Sep. 2025. Would this work as a workaround for recognizing revenue before the client is invoiced?

Thanks,

Hey there, @JustineEFI. 

I appreciate you chiming back in and I'm more than happy to clear up any confusion you may have about creating an invoice dated in the future with a service date now. 

With the details you gave about your request, I recommend submitting feedback to our Product Developers so they can consider adding this in the near future. The functionality to future date invoices does not exist in QuickBooks Online. 

1. Go to the Gear icon in the top right-hand corner. 
2. Press the Feedback option. 
3. Enter your suggestions and then hit Next to submit your feedback. 

Feel free to reach back out if you have any other concerns. Have a wonderful day!