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When I receive a payment against a Quickbooks invoice, the payment is categorized as "accounts receivable" and is not tracked as income. Why is this? How do I change it?

Payments received should be considered "income" -duh!
How do I change Quickbooks online so that my payments against quickbooks invoices are tracked as income, like they should be?
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Best answer 07-12-2019

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Re: When I receive a payment against a Quickbooks invoice, the payment is categorized as "accounts receivable" and is not tracked as income. Why is this? How do I change it?

All is correct as it is.

 

Your income is reflected ONLY in your customer invoices and sales receipts. Payments have nothing to do with it.

 

When you record an invoice you have recorded accrual based income and if you report as accrual the invoice date is your date of income. If you report as cash basis the date of payment (but not the payment itself) is the date of income.

 

All invoices credit income and debit Accounts Receivable. Received payments credit AR.

 

It is how it is and has been centuries before quickbooks. Doh! Time for a refresher of Accounting 101 perhaps?

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Established Community Backer ***

Re: When I receive a payment against a Quickbooks invoice, the payment is categorized as "accounts receivable" and is not tracked as income. Why is this? How do I change it?

All is correct as it is.

 

Your income is reflected ONLY in your customer invoices and sales receipts. Payments have nothing to do with it.

 

When you record an invoice you have recorded accrual based income and if you report as accrual the invoice date is your date of income. If you report as cash basis the date of payment (but not the payment itself) is the date of income.

 

All invoices credit income and debit Accounts Receivable. Received payments credit AR.

 

It is how it is and has been centuries before quickbooks. Doh! Time for a refresher of Accounting 101 perhaps?

Established Community Backer ***

Re: When I receive a payment against a Quickbooks invoice, the payment is categorized as "accounts receivable" and is not tracked as income. Why is this? How do I change it?

Oh, the proof is in your P&L accrual mode - you will see income before the payment or in cash once the payment hits. Keep in mind that "banking" is never expense or income but is instead a record of cash flow.