Date of Service Not Showing in Revenue (it's using invoice date despite being accrual basis)

Shay38 · ‎March 22, 2022

QuickBooks Pro Plus Desktop 2021- it is set to accrual basis. Despite being set to accrual basis, my P&L shows revenue as earned on the invoice dates, not the service dates (service dates are shown on the invoices). How do I fix this in QB Desktop? The only answers I see on here are about switching between cash and accrual. It's already on accrual. Thanks!

Angelyn_T · ‎March 22, 2022

Hi there, Shay. I'll share with you some insights about running reports in QuickBooks Desktop (QBDT) with service and invoice dates.

At this time, the system uses the invoices' dates to show the revenue on your Profit and Loss report the same as other reports which use the transaction dates. I can see the importance of displaying your revenue on the service dates added. Rest assured they're working nonstop to enhance the product and deliver the best experiences to all QuickBooks users. For now, you can use the Feedback feature to send this idea directly to our engineering team. This way, they could take action to help improve your experience.

Here's how you can send feedback through QuickBooks:

Open your QuickBooks Desktop (QBDT) file.
Go to the Help menu, then Send Feedback Online.
Tap on Product Suggestion.
Enter your feedback or suggestions.
Hit the Send Feedback button.

Your valuable feedback goes to our Product Development Team to help improve your QuickBooks experience.

For more tips while handling your QBDT reports, you can open this article: Understand reports.

Additionally, you can get more tips while tracking your invoices and other customer entries in the future from these links:

If you have any other follow-up questions about your reports, let me know by adding a comment below. I'm more than happy to help. Keep safe!

View solution in original post

Angelyn_T · ‎March 22, 2022

Hi there, Shay. I'll share with you some insights about running reports in QuickBooks Desktop (QBDT) with service and invoice dates.

At this time, the system uses the invoices' dates to show the revenue on your Profit and Loss report the same as other reports which use the transaction dates. I can see the importance of displaying your revenue on the service dates added. Rest assured they're working nonstop to enhance the product and deliver the best experiences to all QuickBooks users. For now, you can use the Feedback feature to send this idea directly to our engineering team. This way, they could take action to help improve your experience.

Here's how you can send feedback through QuickBooks:

Open your QuickBooks Desktop (QBDT) file.
Go to the Help menu, then Send Feedback Online.
Tap on Product Suggestion.
Enter your feedback or suggestions.
Hit the Send Feedback button.

Your valuable feedback goes to our Product Development Team to help improve your QuickBooks experience.

For more tips while handling your QBDT reports, you can open this article: Understand reports.

Additionally, you can get more tips while tracking your invoices and other customer entries in the future from these links:

If you have any other follow-up questions about your reports, let me know by adding a comment below. I'm more than happy to help. Keep safe!

Rainflurry · ‎March 23, 2022

@Shay38

QB is working correctly. On accrual basis, income should be recorded as of the invoice date. This is because the all-events test for income states that income is recorded when (1) all events have occurred to fix the taxpayer's right to receive the income and (2) the amount of income can be determined with reasonable accuracy. When you provide a service, you check off #1. When you issue an invoice, you now have a reasonably accurate amount and #2 is checked off and income is booked.

Shay38 · ‎March 23, 2022

You are misunderstanding the rule. Accrual accounting recognizes revenue when it is earned. Preparing an invoice at a later date does not entitle you to defer the revenue. The amount was known once the service was performed. When you or your staff get around to sending the invoice is irrelevant for accrual accounting.

As a former financial statement auditor, I can tell you auditors specifically test for this (cut-off testing & revenue recognition) by reviewing Jan and Feb invoices to ensure revenue was recognized in the proper period.

In my case, a retainer was received in Nov, the service was performed in Dec, and the invoice was prepared in Jan. 2022. The revenue absolutely has to be recorded in 2021 (using the accrual method) because that is when it was earned.

~ Shay (a CPA with over 15 yrs experience)

Con2023 · ‎January 19, 2023

Do you know of a workaround? I see this was brought to their attention almost a year ago.

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Date of Service Not Showing in Revenue (it's using invoice date despite being accrual basis)