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Join nowI'm volounteering at NGO which uses QuickBooks Enterprise.
The organisation runs (among other things) a daycare and pre-school and receives tuition fees for these. Customer invoices covers the tuition fee for the entire school year (i.e. October to June) - The tuition fee therefore needs to be accrued for on a monthly basis, i.e. Debit A/R and Credit Deferred revenue as initial posting and subsequently Debit Deferred revenue and Credit Income as revenue is 'earned'.
Does Qucikbook allow an automatic posting to accrue for the income? Or is the only solution a manual journal entry?
*Considering how the organisation runs the business and administration involved, creating monthly invoices is not an ideal option.
Many thanks,
Hello there, @ElviraYWCA.
You can create a memorized transaction to track your revenue, expenses and every other accounting detail related to your business automatically. Let’s ensure to choose a correct account option when setting up a deferred revenue item and use it in creating your memorized transactions.
To start with, there’s no direct way to create a deferred revenue item. Here’s how:
Once completed, let’s create the Deferred Revenue Item.
To create the memorized invoice, here’s how:
By following the steps above ensure that your transactions are accurately recorded and it will be included on your reporting. You may refer to this article for more detailed information: Create, edit, or delete memorized transactions.
To learn more about the available workflows in managing your transactions in QuickBooks, you may visit these articles:
Let me know if you have other questions. I'm always here to help.
Hi and thanks for the reply.
I've looked at your proposed treatment but I believe this will just create the same invoice every month?
The NGO creates one invoice for the whole semester (i.e. 10 months of school year). Wouldn't this memorised transaction just create the same invoice over and over again?
An alternative would be to create a manual journal (memorized) transaction to set account for the deferred revenue but this would also create a lot of admin.
Appreciate any input.
Thanks
Hello @ElviraYWCA,
Thanks for joining the Community.
Yes, this would generate the same invoice every month. Since you need the fees to accrued for 10 months, enter the number of transactions in the Number Remaining field. Please note this would include the next date transaction.
Feel free to post again or leave a comment below should you have additional questions. I'm always here to help. Have a good one!
Hi, thanks for your reply.
I see, the issue is that I don't want to create a monthly invoice, but rather a monthly accrual.
Currently, an invoice is created which covers tuition fee for 10 months, January to October. Let's say monthly tuition fee is 10 USD, then total invoice amounts to 100 USD.
In January as the invoice is created the system debits AR (100) and Credits Income (100).
This needs to be fixed as income for January should only be 10 USD not 100 USD.
To fix this i Need to Debit Income with 90 USD and Credit Deferred revenue with 90 USD. Going forward, at the end of each month I need to Credit Income with 10 USD and Debit Deferred revenue with 10 USD until we hit October and the deferred revenue is zero.
If this was a one time thing it would be easy to just put through a manual journal, however the NGO has around 200+ invoices so I'm wondering if there is an automatic way of getting this posted?
Many thanks,
Rani
Hello ElviraYWCA,
Thank you for getting back to us here in the Community. I'm here to help provide additional information about the customer invoice in QuickBooks Desktop.
The net amount that shows on the invoice and the payment will be the same with the information reflecting on the Transaction Journal. The 10 USD debit and credit will be reflecting on the payment transaction by pressing the Ctrl + Y key.
Check out these sample screenshots for your visual guide:
Right now, an automatic way of getting this posted is currently unavailable at this time. In the meantime, you can use the manual journal as what you mentioned above.
I'll be taking note of your request regarding the feature on automating accrual to ensure it'll be convenient for you and your firm.
For more insights into how the Transaction Journal works, please visit the article I recommend on this:
View the Transaction Journal report in QuickBooks Desktop.
Feel free to reach out to me again if you have further questions or clarifications concerning the process. The Community will be sure to get back to you.
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