Sales invoice link to the correct income statement period

ABHandshake · ‎January 26, 2024

Hi,

As we are stating a new fiscal year, I have a little bit of a struggle with linking an invoice dated at the beginning of January 2024 to the 2023 Income Statement, Sales.

My invoice is dated January 5th, 2024, but it covers the services provided during Deceber 2023 and should be reflected in the 2023 income statement.

I enter the service date on the invoice 12/31/2022, but the invoiced amount show up no my January 2024 Sales revenew Income Statement line, and in in December 2023 which I would expect.

Could you please advise how to link my Jan 24 invoice to 2023 sales?

Thank you

Heide DC · ‎January 26, 2024

I understand how important it is for you to manage your income statement, ABHandshake. Rest assured to help you fix this.

Please note that QuickBooks will base it on the original invoice date. However, you can still edit it but I'd suggest consulting an accountant to ensure your records are in order.

In addition, you can check this article that will help you save time in the future on how to record, edit, and delete expenses in QuickBooks Online: Enter and manage expenses in QuickBooks Online.

Please keep me posted in the comments if you have other concerns about managing your income statement. Stay safe.

View solution in original post

Bryan_M · ‎March 28, 2024

Hello, @Cero.

Let me be precise about the feature in the invoice to apply the service date instead of the invoice date in the income statement.

I agree with what my colleague shared above. The Income Statement in QuickBooks will based on the invoice date instead of the service date you entered. However, you'll have the option to manually edit it up to the date you desire.

In the future, I recommend creating the invoice once the product or service is rendered to ensure it fits the income statement period.

Also, we're tackling financial statements so it's best to reach out to your accountant while performing this, to avoid book discrepancies.

Moreover, you mentioned revenue recognition, this feature is only available in QuickBooks Online (QBO) Advanced. If you wish to have this, you can upgrade your subscription if you're in a lower program. Feel free to read this article: Upgrade or downgrade your QuickBooks Online edition.

You can read this article to learn how to start up with revenue recognition in QBO Advanced: Set up a revenue recognition schedule in QuickBooks Online Advanced.

You might want to personalize your invoices to make them more professional-looking. Check out this article: Customize invoices, estimates, and sales receipts in QuickBooks Online.

For additional questions about managing your financial statements and invoices, click the Reply button below. I'll be willing to help. Have a good day.

View solution in original post

Heide DC · ‎January 26, 2024

I understand how important it is for you to manage your income statement, ABHandshake. Rest assured to help you fix this.

Please note that QuickBooks will base it on the original invoice date. However, you can still edit it but I'd suggest consulting an accountant to ensure your records are in order.

In addition, you can check this article that will help you save time in the future on how to record, edit, and delete expenses in QuickBooks Online: Enter and manage expenses in QuickBooks Online.

Please keep me posted in the comments if you have other concerns about managing your income statement. Stay safe.

ABHandshake · ‎March 28, 2024

Hello,

I would like to return to this question. I have attached a screenshot from our system.

Generally, we invoice to our customers after the services have been rendered, at the beginning of the following month.

Example as per the attached screenshot:

The invoice date is February, 05th, the Service date is January, 31st.

We would expect that this invoice will show up in January in our Income Statement, but instead, it appears in February.

Is there a way how we can fix it?

Thank you

Cero · ‎March 28, 2024

Can you please be precise on your answers and be honest that you don't have this feature yet.

I've been trying to figure this issue for a long time and it seems there's really no way to be able to execute this kind of revenue recognition. Am I right?

Bryan_M · ‎March 28, 2024

Hello, @Cero.

Let me be precise about the feature in the invoice to apply the service date instead of the invoice date in the income statement.

I agree with what my colleague shared above. The Income Statement in QuickBooks will based on the invoice date instead of the service date you entered. However, you'll have the option to manually edit it up to the date you desire.

In the future, I recommend creating the invoice once the product or service is rendered to ensure it fits the income statement period.

Also, we're tackling financial statements so it's best to reach out to your accountant while performing this, to avoid book discrepancies.

Moreover, you mentioned revenue recognition, this feature is only available in QuickBooks Online (QBO) Advanced. If you wish to have this, you can upgrade your subscription if you're in a lower program. Feel free to read this article: Upgrade or downgrade your QuickBooks Online edition.

You can read this article to learn how to start up with revenue recognition in QBO Advanced: Set up a revenue recognition schedule in QuickBooks Online Advanced.

You might want to personalize your invoices to make them more professional-looking. Check out this article: Customize invoices, estimates, and sales receipts in QuickBooks Online.

For additional questions about managing your financial statements and invoices, click the Reply button below. I'll be willing to help. Have a good day.

CEDYLADY14 · ‎August 06, 2024

Did you ever find a solution @ABHandshake ? I am up against the same issue and can't for the life of me figure this out.

Anyone else have pearls of wisdom on how to correct?

ElevatedOperationsGroup · ‎August 29, 2024

The only way I've found to get revenue in the correct period along with an accurate invoice date is through Journal Entries. The service date doesn't appear to have any affect on reporting and QB only recognizes the invoice date when recognizing revenue.

It would be nice if QB either recognized revenue based on service date or added a field for the date an invoice is to be recognized, like many other systems do.

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Sales invoice link to the correct income statement period