Invoices and Accounts Receivable

classiccarwash · ‎November 29, 2022

At our carwash, we have fleet accounts. Different body shops and other businesses bring their vehicles for us to clean. It gets entered into the cash register as a fleet charge. I write an invoice on each car and the service we do. (which is always the same thing) Then I enter that invoice into QB. At the first of the month, I send out a statement along with a copy of each invoice.

When I enter the invoice, it goes into Sales on our P&L. However, that is not actual money coming in. We do not receive the payment for the service until the month after. (the statement I send out) When I click on Sales on the P&L, it shows the Daily Sales Summary, which is fine. Then it shows each individual invoice. It says split beside it. It is split with accounts receivable (balance report). In actuality, the sales on my monthly P&L are not accurate as far as actual money that came in. My question is this: Is there a way to make sure when I enter the invoice that it goes to Accounts Receivable instead of sales on the P&L? If not, how can I remove invoices from the sales on P&L? When I remove it from sales, what category should I put it under?

Thank you

DHeraV · ‎November 29, 2022

Welcome to the Community, @classiccarwash,

Let me share some insights about Invoices and Account Receivable (A/R). When creating Invoices, it always debits the A/R and credits the income account you use on your items. It is also possible your report is set to accrual. If so, we can change it to a cash basis. Allow me to guide you through the steps in changing.

Here's how:

Log in to your file as the Administrator. Make sure you are in Single-User Mode.
Go to the Edit menu, then select Preferences.
Select Reports & Graphs, then go to the Company Preferences tab.
In the Summary Report Basis section, select Accrual or Cash.
Click OK.

Refer to this article for detailed information: Differentiate Cash and Accrual basis.

You may also want to customize any report that you generate in QuickBooks Desktop (QBDT): Customize reports in QuickBooks Desktop.

Feel free to hit the Reply button if you require further assistance with your Invoices and Account Receivable in QBDT. I'm here to help anytime. Have a great one!

Rainflurry · ‎November 30, 2022

@classiccarwash

Are you a cash-basis or accrual-basis taxpayer? Cash-basis taxpayers only record income when the cash is received and accrual-basis taxpayers record income "when all events have occurred which fix the right to receive such income". If you are a cash-basis taxpayer, run the reports as @DHeraV has described and those washes will be removed from your income until payment is received.

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