contract value

Hello JimLen!

There is a way to show the amount as an asset. I'll share with you the steps.

Let us use an asset account instead of an income account for this item you're using in creating an invoice. Everytime you create a sales transaction with this item, it'll be recorded on that asset account. 

Follow these steps:

1. Go to the Sales menu or Get paid & pay menu, then select Products and services.
2. Find the item, then click Edit.
3. Change the Income account drop-down to an asset account.
4. Tap Save and close.

With regard to progress invoicing, you'll first need to create an estimate before you can convert it to an invoice. Please note that the estimate is a non-posting transaction which means that it has no effect on your books. You'll want to create an invoice instead if you need to show it on your asset account. 

Here's how:

1. Go to the + New button and select Invoice.
2. Select the Customer, Invoice date, Due date, and the item under the Product/Service column.
3. Enter the other details needed, then tap Save and close.

You'll want to create multiple invoices since this is on a monthly basis. Just make sure that the Invoice date and Due date are correct. You can also automate it by creating a recurring transaction in QuickBooks Online.

I added these articles if you need detailed steps on how to record customer payments and how to personalize your sales forms:

• Record invoice payments in QuickBooks Online
• Customize invoices, estimates, and sales receipts in QuickBooks Online

You're more than welcome to post here again if you have concerns regarding invoices. If you'd like to record some entries or run a few reports, let me know and I'll guide you with the process. 

Thank you, Alex, but this does not really get me where I need to be. 

   As I said, I want to be able to recognize the value of the contract as an asset.

   What I am thinking is something like:

1. When a contract is signed, create an asset item for the full value of the contract
2. Each month, create an invoice against the value of the asset, thus deprecating it.
3. As the payments come in, treat them like any other invoice to accept payment.

   In this way, the current value of the contract shows up on the balance sheet; and the invoices and payments work like any other.

   Would this work?  How can I automate that second step?

   Thank you.

Thanks for getting back on this thread, JimLen.

Yes, the steps that you've shared will work in recognizing the value of the contract as an asset.

As for automating the invoice each month, you can make it a recurring transaction. I'll show you how.

1. Go to the Gear icon and then select Recurring transactions.
2. Click New.
3. Select Invoice as the type of transaction, and then click OK.
4. Enter a Template name.
5. Add a Type: Scheduled, Unscheduled, or Reminder.
6. Choose a customer.
7. Complete the details of the transactions.
8. Once done, select Save template.
   

For more details, please see this Article: Create Recurring Transactions in QuickBooks Online.

Additionally, I've added an article that'll help you make sure your QuickBooks accounts match your real-life bank and credit card statements. This keeps your books accurate: Reconcile Workflow.

Please stay in touch with us if you have additional questions or concerns. It's always my pleasure to help you out again. Keep safe always!

Thank you , Charlene.

    I've got the template / memorized transaction piece.  What I am stuck on is what all of the entries (invoice and journal entry categories and offsetting transactions)  look like.  Also, there are going to be (I believe) multiple steps -- JE and Invoice at least -- how do I tie those together?

J