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H
Hiroki
January 19, 2022
Solved

Revenue recognition function for warranty

  • January 19, 2022
  • 1 reply
  • 9 views

Hello, I am wondering if Quickbooks has a revenue recognition function for warranty.

When we sell warranty, first 2 years are free. Then, revenue can be happened 3rd year.

Does anyone know that if QB has a function like;

 

*record the warranty to "advanced payment" when we invoice to customers

*and then 2 year later QB automatically start records it to a revenue

 

So far, we record warranty as a sales revenue (we see revenue on PL) on invoices and manually re-classify to some other account on J/E every month. 

I wonder if QB has any automatic way to do this.

 

Thank you,

 

 

 

 

Best answer by Rea_M

I'm here to share details about the availability of the revenue recognition function for warranty in QuickBooks Desktop (QBDT), @Hiroki. This way, you're able to record and manage your sales revenues accordingly.

 

You're already on the right track in recording your warranty as sales revenue on invoices and then manually re-classifying them to some other accounts on journal entry transactions every month. This is because, for the time being, you're unable to automatically record a warranty in QBDT.

 

You may opt to check for a third-party application that can integrate with QBDT to help you automatically record your warranties. To do this, I'd recommend visiting this page: QuickBooks third-party apps.

 

Also, to further guide you in managing your business growth and income transactions in QBDT, I'd recommend checking out this article: QuickBooks Help Articles for Sales and Customers. It includes topics about managing sales and payment transactions and customizing forms, to name a few.

 

I'm all ears if you have other verification about available features and managing your revenues in QBDT. You can comment below, and I'll be right there with you. Take care always, @Hiroki.

1 reply

R
Rea_MAnswer
Level 10
January 19, 2022

I'm here to share details about the availability of the revenue recognition function for warranty in QuickBooks Desktop (QBDT), @Hiroki. This way, you're able to record and manage your sales revenues accordingly.

 

You're already on the right track in recording your warranty as sales revenue on invoices and then manually re-classifying them to some other accounts on journal entry transactions every month. This is because, for the time being, you're unable to automatically record a warranty in QBDT.

 

You may opt to check for a third-party application that can integrate with QBDT to help you automatically record your warranties. To do this, I'd recommend visiting this page: QuickBooks third-party apps.

 

Also, to further guide you in managing your business growth and income transactions in QBDT, I'd recommend checking out this article: QuickBooks Help Articles for Sales and Customers. It includes topics about managing sales and payment transactions and customizing forms, to name a few.

 

I'm all ears if you have other verification about available features and managing your revenues in QBDT. You can comment below, and I'll be right there with you. Take care always, @Hiroki.

H
HirokiAuthor
January 20, 2022

Thank you very much for the reply.

I understood that there is no automatic function for the job that I want to do with our QB.

Thank you for the recommendation about using third party. We may try.

 

Thank you,

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