Best Way to Bill a Recurring Flat Fee Every Month

skoz5555 · ‎May 31, 2022

Hi,

I am a contractor and perform Cost Plus contracts and part of my fees is a flat fee of X,XXX that covers supervision for that month. Regardless of how many hours my supervision actually spends. I need to Bill this to the client at the month-end; however, makes sure it doesn't hit my COGS. What I've been doing is creating a Bill for the fee and checking the Billable box, then creating a credit for the same thing and unchecking the Billable box. This way it is picked up when I bring in the time and materials.

What I don't like, is that it creates a number of credits/debits for that account that show up on reports. With a number of jobs going, it really adds up and is annoying.

I'd like to find a way to memorize a transaction for the monthly fee, that does not involve a "work around". This way I don't have to remember to enter it, nor do I have to remember what amount it is for what client.

Any suggestions?

Rea_M · ‎June 01, 2022

Hello there, @skoz5555. I'm here to guide you a way to memorize a transaction for your monthly fee that won't hit your COGS in QuickBooks Desktop (QBDT).

Based on your description of the issue above, you'll have to create a service item for your flat fee and then memorized a billable bill transaction. This way, you won't affect your COGS account and repeatedly create a bill for your client every month.

Let's start creating the flat fee service item by following these steps:

Go to the Lists menu.
Choose Item List
Press CTRL+N on your keyboard or right-click the Item drop-down menu and select New.
Select the Service as the Type.
Enter the item name.
Choose the correct account and enter the Rate.
Click OK.

Once you're done, you're now set to create a billable memorized bill transaction. The bill should be under your name, and choose the name of your client under the Customer:Job column to make it billable. You can either refer to the screenshot below or check out this article for the step-by-step guide: Create, edit, or delete memorized transactions.

Also, you may want to check out this article as your reference in case you want to set up and use different reports to get a better understanding of your cash flow in QBDT: Track your cash flow in QuickBooks Desktop.

Let me know if there's anything else you need or concerns about billable memorized transactions in QBDT. I'm always ready to help. Take care, and I wish you continued success, @skoz5555.

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Best Way to Bill a Recurring Flat Fee Every Month

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