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Community Contributor **

How do I enter an invoice so that it appears under a particular income account on the profit and loss - ie revenue versus fee for service?

Is there something I need to edit when I'm entering the invoice?  I feel like this should be pretty basic but I can't figure it out!

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Best answer 12-26-2018

Accepted Solutions
QuickBooks Team

Re: How do I enter an invoice so that it appears under a particular income account on the profit ...

Thanks for getting back to us, Michelle2018. 

 

Allow me to jump into this thread and add some information to the awesome answer provided by @john-pero

 

As what @john-pero mentioned above, the income account is linked to the products/services you sell. The invoice doesn't have a specific field where you can select a particular income account. 

 

Once you set up a product or service items, QuickBooks Desktop will ask you to select an income account (see screenshot below). This will be used to track and handle each transaction, so they'll translate to your Profit and Loss report. 

 

All you need to do is create an invoice, then select the item you want to use. The program will automatically post it to the income account you've initially designated to the item. For a visual reference, I've created a workflow of how QuickBooks handles those in the second and third screenshots below. 

 

To create an inventory or service item:

  1. Go to Lists at the top menu bar, choose Item List.
  2. Right-click the page and select New.
  3. Enter necessary details, then pick an Income account in the Account drop-down.
  4. Click Ok.

Should you want to review how the accounts work in the background, open the Transaction journal within the invoice:

  1. Open the invoice you've created. 
  2. Select Reports at the top of the page. 
  3. Click Transaction Journal (see screenshot 4).

Here's a link to our QuickBooks blog about understanding items in QuickBooks:

 

Understanding Items in QuickBooks

 

These steps and resources can give you an overview of how the program manages your transactions. 

 

Please know that you can always count on me if you need help with anything else. I'll be around, anytime. 

 

Capture 1.PNG Capture 2.PNG Capture 3.PNG Capture 4.PNG

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7 Comments
Established Community Backer ***

Re: How do I enter an invoice so that it appears under a particular income account on the profit and loss - ie revenue versus fee for service?

You enter Items (DESKTOP) or Products/Services (QBO) as charges to your customers on invoices and sales receipts. Set up Items you sell (or services you render) and select an income account that they will post to. Then what your customers are charged will be income to you when paid (cash basis) or when billed (accrual basis). It is that simple.

 

If you sell products you buy and hold in inventory these will be two sided as you will record same item being purchased will go into current inventory asset but against cost if goods sold when you sell

Community Contributor **

Re: How do I enter an invoice so that it appears under a particular income account on the profit and loss - ie revenue versus fee for service?

Hi John,

 

Thanks for your reply! 

 

I can't find anywhere on the invoice to select an income account to post to?  Would it be on the actual invoice?

QuickBooks Team

Re: How do I enter an invoice so that it appears under a particular income account on the profit ...

Thanks for getting back to us, Michelle2018. 

 

Allow me to jump into this thread and add some information to the awesome answer provided by @john-pero

 

As what @john-pero mentioned above, the income account is linked to the products/services you sell. The invoice doesn't have a specific field where you can select a particular income account. 

 

Once you set up a product or service items, QuickBooks Desktop will ask you to select an income account (see screenshot below). This will be used to track and handle each transaction, so they'll translate to your Profit and Loss report. 

 

All you need to do is create an invoice, then select the item you want to use. The program will automatically post it to the income account you've initially designated to the item. For a visual reference, I've created a workflow of how QuickBooks handles those in the second and third screenshots below. 

 

To create an inventory or service item:

  1. Go to Lists at the top menu bar, choose Item List.
  2. Right-click the page and select New.
  3. Enter necessary details, then pick an Income account in the Account drop-down.
  4. Click Ok.

Should you want to review how the accounts work in the background, open the Transaction journal within the invoice:

  1. Open the invoice you've created. 
  2. Select Reports at the top of the page. 
  3. Click Transaction Journal (see screenshot 4).

Here's a link to our QuickBooks blog about understanding items in QuickBooks:

 

Understanding Items in QuickBooks

 

These steps and resources can give you an overview of how the program manages your transactions. 

 

Please know that you can always count on me if you need help with anything else. I'll be around, anytime. 

 

Capture 1.PNG Capture 2.PNG Capture 3.PNG Capture 4.PNG

View solution in original post

Community Contributor **

Re: How do I enter an invoice so that it appears under a particular income account on the profit ...

So very helpful!  Thank you, Vivien!  You made my day!

QuickBooks Team

Re: How do I enter an invoice so that it appears under a particular income account on the profit ...

Don't mention it, Michelle2018!

 

It's a pleasure to shed some light to your concern! The Community is a perfect avenue to connect with accountants and other QuickBooks users. 

 

Should you need anything else in the future, feel free to swing by here again. Wishing you and your business continued success in every future endeavor. 

Not applicable

Re: How do I enter an invoice so that it appears under a particular income account on the profit ...

Is there anyway to reduce the list of accounts that show up in the Income Account drop down box ? Currently when we add an item and click on the Income Account drop down box, ALL of the active accounts set up on the chart of accounts appear in the list of accounts to choose from so it makes it time consuming to add an item number and scroll thru all the accounts, and, it makes it very easy for less experienced users to pick the wrong account number to link the item's income $$ to with all accounts showing up !

QuickBooks Team

Re: How do I enter an invoice so that it appears under a particular income account on the profit ...

Hi there, @Karen9956.

 

I'm here to help share additional information about the Income Account when adding item under the Item List.

 

When creating a new item under the Item List in QuickBooks Desktop (QBDT), all active accounts will show up under the Income Account section or drop-down arrow. As of now, the only option to reduce the list of accounts from there, is to make the accounts inactive or delete the accounts under the Chart of Accounts.

 

However, if wish not to make the accounts inactive or delete the accounts, you can just simply type in or search the name of the account in the field to locate or select the account directly. You don't need to scroll up/down to look for the correct account.

 

You can see attached screenshots for additional reference.

a3 type in the account name1.PNG

a3 make the account inactive2.PNG

a3 inactive or delete.PNG

a3 account don't appear.PNG

 

On the other hand, to learn more about adding, editing, and deleting items in QBDT, you may check this article: Add, edit, and delete items.

 

Please don't hesitate to add a post/comment below if you have any other QuickBooks questions, I'll be always here to help you however I can. Have a great day ahead!

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