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Level 1

How can I invoice a client for a single fee but have Quickbooks automatically split the subsequent payment to several internal departments?

We invoice our clients a single service fee. However, internally, this fee's revenue needs to be split across several departments. These splits are not always the same from clien to client. Is there a way to add these splits to the invoice (not visible to client) so that when the customer pays, the revenue automatically allocates? We are cash basis so I am trying to avoid having to remember to create an allocation Journal Entry every time a client pays an invoice.
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Moderator

How can I invoice a client for a single fee but have Quickbooks automatically split the subsequent payment to several internal departments?

Welcome to the Community, @mmolki.

 

Right now, adding these splits to a single item is currently unavailable. When creating a service for the fee, you can only select one income account where the revenue will post in QuickBooks Online (see screenshot below).

 

 

The only way to separate them is to create another service and add them to another line. I also suggest enabling the class tracking feature to track transactions by departments.

 

 

I understand how the workflow you're looking for is beneficial to your business. Since it's unavailable, I can pass along another feature request on my end to ensure your voice is heard.

 

For the time being, you can visit our blog and sign up to our Newsletter. This way, you’ll receive email updates about changes in the product. 

 

Please know that the Community has your back if you need assistance. It’s a place for you to connect with experts and peers. Wishing you and your business continued success.

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Level 1

How can I invoice a client for a single fee but have Quickbooks automatically split the subsequent payment to several internal departments?

Thanks AlcaeusF. I actually figured out a way to do it that appears will give me what I need. Under the settings for Products/Services, I create a Service for each of the divisions - pointing each to the GLs that I need. Then I create a Bundle of the Services. When I create an invoice, I add this Bundle as a line item, rather than a Service. On the Bundle line, I can add any description I want - what the client will see. The Bundle then shows a line for each of the Services I added to it in sub-lines - I can add different dollar amounts and descriptions for each of these Service sub-lines and it appears only the Bundle line shows to the client on their invoice.

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Level 1

How can I invoice a client for a single fee but have Quickbooks automatically split the subsequent payment to several internal departments?

Thanks Alcaeus. I believe I actually figured out a solution. Under the Products/Services settings, I can add Bundles. So I added a Service for each of the divisions that I need - each pointing to the GL I want them to. Then I create a Bundle of these Services. In the invoice, I add the Bundle instead of a Service. On the main Bundle line, I can add a description (what the client sees). Then there are sub-lines for each Service I Bundled. On these sublines, I can add any description and dollar amount that I want. The dollar amounts sum on the Bundle. When I print/preview the invoice, only the Bundle line shows - hiding the Service sub-line descriptions and amounts from the client. I ran a report using accrual method and it did correctly split the individual costs to the the GLs that I want to so I presume that when the invoice is paid and I run a Cash report, it will do so then also. It's additional work when I think QBO could simply just add a section to the bottom of the invoice creation screen that allows you to allocate the fee you are charging. But this method appears to give me what I need without having to remember to do an allocation JE every time a client pays an invoice.

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QuickBooks Team

How can I invoice a client for a single fee but have Quickbooks automatically split the subsequent payment to several internal departments?

It's good to hear that you already figured out, @mmolki

 

Thank you for sharing the details you've done to get this resolved. The resolution you've shared can help other users who've also encounter this situation. We highly appreciate users like you who shared their solution here in the Community.

 

For your future reference, please browse through this article:  Adding Products and Services, Customers, and Vendors to Lists. This link guides you in creating, managing accounts, and other related topics. 

 

As always, if you need additional help, don't hesitate to drop by here in the Community. I'm always here to help.

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