Can we edit the invoices if it fall under revenue recognition?

Glad to see you here, @yogesh-rawat-exx.

Let me help you edit your invoices that fall under revenue recognition and share insights.

Revenue recognition can be changed anytime including its invoices. You can also update info in the Products and Services section, then the changes will apply to all future transactions.

You can follow the steps below on how to edit:

1. From the Sales tab on the left panel, choose Invoices.
2. Look for the Revenue Recognition invoices. Click the Edit icon or tap the dropdown tab, and select View/Edit.
3. Update the invoice. Once done, click Save.

Furthermore, if you want to personalize and add specific info to your sales form, check this article: Customize invoices, estimates, and sales receipts in QuickBooks Online.

For additional queries about managing your Revenue Recognition invoices, come back here. I'll be willing to help you. Have a good day and keep safe.

I have already checked it. It shows me below error:

Thanks for getting back with the Community, yogesh-rawat-exx. I appreciate your detailed information.

Since you're encountering a message advising that an invoice can't be edited due to being tied to a revenue recognition schedule, I'd recommend deleting the schedule, making your changes, then setting your schedule back up if necessary.

Here's how to delete revenue recognition schedules:
 

1. Use the Gear icon, then go to Products & services.
2. Locate your service that was created for the schedule.
3. Click its Drop-Down Arrow (▼) icon, then select Delete.

After deleting the schedule, you'll be able to make changes to your invoices that were associated with it. Once you're finished, you can set the schedule back up.

If there's any additional questions, I'm just a post away. Have a wonderful Friday!

If you delete the revenue recognition schedule associated with a Service, does it automatically go back and apply the schedule to all the previous invoices?

if I delete the Revenue Recognition in the Service, does it go back and reapply the schedule to all previous applicable invoice transactions? I have two years of data so it will be impossible to correct all invoices.

Hello there, 9130356698691756.

I'll be providing details on how the revenue recognition schedule works in QuickBooks Online. This way, I'll ensure you can organize your data efficiently with the feature being mentioned within the program.

Once you delete the Revenue Recognition in the Service, yes, it still goes back and reapplies the schedule to all previous applicable invoice transactions. You'll only lose revenue recognition settings for your items but active revenue recognition schedules continue until they're complete. You can read this article for further details: Set up a revenue recognition schedule in QuickBooks Online Advanced.

Lastly, you can read this article if you need steps on how to run dozens of reports to give you a snapshot of your business: Run reports in QuickBooks Online.

I'm all ears if you have other concerns related to managing your invoice with the revenue recognition in QBO. You can comment below, and I'll be right there with you. Take care always, 9130356698691756.

Hi there,

I am following this thread, when I go to delete / make inactive the product / service, I cannot do so with this message: 

"We can't deactivate this service. There's an active revenue recognition schedule for this service."

How do I get around this to then change the service date on the invoice as mentioned above if I can't delete / make inactive the associated product / service for this reason?

Thank you in advance for the help!

Hi there,

I am having the same problem, but I cannot solve it by going and deleting / making inactive the product / service associated. I get this error when I try to delete the product / service.

"Something’s not quite right We can't deactivate this service. There's an active revenue recognition schedule for this service."

How do I get around this, I cannot wait for the revenue recognition schedule to go through before deleting / make inactive on this product as this will be months from today....

Thanks in advance!

I appreciate your effort in following the steps provided by colleague, jordan. I'm here to help you out. 

We can uncheck the I recognize revenue for this product option in the specific services you want to delete or make inactive. This way, we can complete this action. 

Here's how: 

1. Go to the Product and services page. 
2. Hit Edit on the service you want to make inactive. 
   
   
3. From the I recognize revenue for this product, untick the box and Turn off. 
   
   
4. Click Save. 
   
   

Then, we can remove the product/service. 

Additionally, you can read this article to learn how to add specific details to your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online. 

Please let me know if you have follow-up questions about revenue recognition in QuickBooks Online. Keep safe! 

The functionality here is terrible. If the accounting period is not closed, you should be able to adjust the service dates (on the invoice) without having to adjust and inactivate the the underlying product/service. The amount of steps to fix this are not feasible.

That said, the workaround solution still doesn't fix this example:

Let's say the customer defaults on a 12 month contract and I stop performing services a few months into the contractual term. Now I'm incorrectly grossing up my P&L as I cannot stop recognizing the revenue per the tool and have excess bad debt expense. The accounting period is already closed so I can't go back and adjust it. Please don't tell me you have recognize a credit memo over the remaining contractual term as that is still a terrible solution.

Hi again,

After successfully changing the revenue recognition date on the invoice and saving, how long does it take for the "auto generated entry with revenue recognition" entry to be re-generated / amended to reflect the new change made to the revenue recognition schedule on the invoice?

It seems as the audit log change is not instant, although the invoice and revenue recognition schedule appear correct. Any understanding on timing of update at this point would be helpful.

Thanks in advance,

Jordan

Let me share how the revenue recognition schedule works in QuickBooks Online, @jordanio17.

Revenue Recognition is a generally accepted accounting principle (GAAP). Its posting frequency is set to monthly, but we can change it. After you change it, it'll apply to all future transactions. QuickBooks will automatically post the revenue recognition entries at the end of the month. 

Moreover, I've added this article to help you learn more about revenue recognition: Set up a revenue recognition schedule in QuickBooks Online Advanced.

You can also check out this article to learn how to personalize your invoices: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Feel free to reach out if you have further concerns about revenue recognition or any QuickBooks-related queries. We're always here to help. Keep safe.