Customer invoice

I appreciate the detailed steps you've shared for recording royalty fees, @Tom208. Let's work together to fix this so you can record the customer invoice and see the royalty fees under Income in the Profit & Loss report.

In QuickBooks Online, the data that will show on the reports are based on the data entered in the program. Thus, let's make sure that everything was recorded accurately and correctly. Since you're seeing Services in the report, I recommend reviewing the account name for your Royalty fees in the Chart of Accounts. Here's how:

1. Click the Gear icon, then select Chart of Accounts.
2. Enter the account name in the Filter by name or number field.
3. Review its Account Type and the Detail Type. 
4. In the Action column, select Edit if you want to change the name, then click Save.

If you verified that the account name is correct, let's check the service item to verify if the income account you assigned is the Royalty Fee income account.

Then, when running the report, you'll have to ensure to set the appropriate reporting date or accounting method to show all related income accounts. Also, you can click the amounts on the report to check if this is related to the royalty fees. 

In addition, you can find a variety of ways to run and customize your reports in QuickBooks Online by referring to the following articles:

• Customize reports in QuickBooks Online.
• Memorize reports in QuickBooks Online.

You can also record the invoice payments once you receive them from your customer to mark the existing invoice as paid. 

If you need further assistance or have any other questions, please don't hesitate to reach out. We are here to help and provide support. Have a wonderful day!

Thank you for your reply. 
Where do I find the categories to edit? I cannot see a way to edit the categories? I think that is where the issue is?

Fyi- the royalty account is set up ok, but still trying to find the disconnect?

Hi there, @Tom208.

Let me help you edit categories of your Royalty fee so it won't show in Profit & Loss reports as Services under Income.

To change the category you'll need to go to Product & Services and edit the Income account you assigned to it. Here's how:

1. Go to Sales.
2. Choose Products & services.
3. Look for the Royalty fee service. Then, click the Edit icon below the Action column beside it.
4. A page on the right side will pop up. Scroll down and in the Income account, select Royal Fees.
5. Once done, click Save and close.

After that, we'll go to the Chart of accounts and edit each category of the account. You can follow the steps below:

1. From the Transactions tab on the left navigation, select Chart of accounts (COA).
2. Look for the Royal Fees account in the search field.
3. Once it shows up, click the dropdown icon below the Action column and on the side of the Run Report tab. Then, pick Edit.
4. Choose the correct option in the Save account under and Tax form section tabs. The Account name should be Royalty Fees.
5. Scroll down, and a preview of what you'll view in the Profit & Loss report will show. Ensure that Royal Fees' name should have a blue colored box since this will show in the report.
6. Once done, click Save.

Lastly, we'll need to undo payments made and delete and recreate the invoices under Royalty fees since the changes will only take effect on future transactions. This will help show the correct Income account in the Profit & Loss report.

On top of that, I recommend reaching out to your accountant before or while performing the steps above because this involves changing account categories that might affect your book balance.

If you have an account in the COA that you no longer use, you can read this article to help you decide what to do with it: Make an account inactive on your chart of accounts in QuickBooks Online.

Leave a comment below for additional questions about managing your accounts and transactions. I'll be willing to help. Keep safe and have a good one.

Hi Bryan, 

thanks for your input.

i had already had everything as you had suggested and it does not fix the issue. 

another thing that is odd, is that when I go to chart of accounts, and run the report for royalty fee, there is no data in the report?

but what is interesting is that when I go to the P&L, it still shows up under Services? 
this is despite the fact that I have it set up under royalty fee under “other income”?

Thank you everyone for your help. As I could not figure out what the issue was. I deleted the original invoice and the royalty fee accounts and reset them up and re did the invoice and it worked. Not sure how or why but it is done. lol 

thanks again. 
but do have another related question. 
if I want to invoice a tenant for electric, is it possible to bill them and have their monies offset my electric bill so in the P& L my electricity expense only shows the net electric (total electric bill less tenants share)?  Thank you.

I appreciate you for returning to this discussion and taking into consideration the advice given by my colleagues, Tom208.

Great job for resolving it, Tom! The Profit and Loss report displays the accounts where they belong based on the account type used. If you created it under the Other Income account, it should appear under the Other Income account. Moving forward, make sure to apply the appropriate Income account in your item and use that item when you create a transaction to get the data on the report.

On your next concern, yes, it's possible in QBO. If you're using QBO Plus or Advanced, you can utilize the Billable Expense feature. When you enter the electric bill as an expense and mark it as billable to the tenant, you can then invoice the tenant for this billable expense. Check this article for more tips: Enter billable expenses in QuickBooks Online. 

Lastly, you can check this article for tips about personalizing sales forms: Customize invoices, estimates, and sales receipts.

Know that you can always post in the Community if you have other questions about running reports. I'll be around to help.