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JBuildMatters
Level 1

Estimates and Trial Balance

I'm using the MAC version of Quickbooks. I am using an estimate module to create a lease.  When I create the estimate, I use an in item connected to an income account (Earned Rent).  It appears that the estimate is not impacting my financials, but when I run a trial balance, estimate appears as earned rent. Is this normal?

 

Example:

Estimate for 12 months rent @ $1000 gives an amount of $24000. The trial balance has $24000 credited  Earned Rent even though I haven't earned anything.  Furthermore, as I invoice each month, the Earned Rent credited. So at the end of the lease, the amount in earned income will be $48,000.

 

Any help would be appreciated.

1 Comment 1
JoesemM
Moderator

Estimates and Trial Balance

Hello there, @JBuildMatters.

 

Since the estimate is a non-posting type of transaction and it doesn't post to any type of account unless you copied it to an invoice.

 

Please also know that only posting transactions affect report totals, the customer's balance, and the accounts receivable balance immediately. 

 

The trial balance only confirms the total of all debit balances matches the total of all credit balances in each account.

 

With that being said, I'd highly recommend consulting with your accountant. They can properly assist and check this further, to ensure the accuracy of your books. You can also find one by checking out this article: Find an accountant or bookkeeper.

 

I'm adding an article that has all the information about reports in QuickBooks Desktop and how to use them: Understand reports.

 

You can always count on me if you have other concerns or questions. I'm always here ready to help. Have a great day and take care!

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