How should I record royalty income?

Hello there, @CoastWriter.

I can share a way on how you can record royalty income within your QuickBooks Online (QBO) account.

You can create a service item named for the royalty payment and link it with an income account. 

1. Go to the Sales menu.
2. Within the Products and services tab, select New.
3. Select Service.
4. Add a name and enter all the required details.
5. In the Income account, select the appropriate account.
   
6. Click Save.

Then, you can use that item on a sales receipt since you received the payment already. Here's how:

1. Go to the +New button.
2. Select Sales Receipt.
3. Add the item and  enter all the required details. 
4. In the Deposit to field, select Undeposited Funds.
5. Click Save.

Once done, deposit to the bank with the payment of 50% of the royalty to a contractor.

1. Still, go to the +New button.
2. Select Bank deposit.
3. Under the Select the payments included in this deposit section, find the sales receipt. Tick the transaction.
4. Under the Add funds to this deposit, enter the contractor's name. 
5. Choose expense account and the amount you'll pay to your contractor (negative amount).
6. Click Save.

I'd also recommend consulting your accountant to ensure your books are accurate. Then, they'll be able to provide some other ideas in tracking them accordingly.

You may want to check this for additional information about making bank deposit in QBO: Record and make bank deposits in QuickBooks Online.

Let me know if you have other concerns or need more help with handling your transactions. I'm just around to help. Take care always.

Hi CoastWriter,

Hope you’re doing great. I wanted to see how everything is going about recording royalty income. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!