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ld-kore
March 25, 2021
Question

Setting up product/services markups

  • March 25, 2021
  • 2 replies
  • 0 views

Is there anyone out there who can help me record income based on product/service markups? I have been chatting with online support on this subject for over a week now. I know about going to the Settings/Expenses and filling in the markup %, but I would to know what income account it is going to. Does QuickBooks Online have a default income account or do I need to set one up? And if I need to set one up, how do I do that?

2 replies

MaryLandT
MaryLandT
March 25, 2021

I'm here to help track your markups in QuickBooks Online (QBO), ld-kore.

 

QBO will automatically set a default account once your turn on markups. If you need to use other income account, you can create a new one. 

 

Let me show you how:

 

  1. Go to Settings ⚙ and select Chart of Accounts.
  2. Click New to create a new account.
  3. From the Account Type ▼ drop-down, choose an account type.
  4. From the Detail Type ▼ drop-down, select the detail type that best fits the transactions you want to track. 
  5. Enter a name, like Markup.
  6. You can add a description.
  7. When you're done, select Save and Close.

You can then assign the newly added account. Here's how:

 

  1. Go to Settings ⚙, then Accounts and Settings.
  2. Proceed to the Advanced tab.
  3. Click Chart of Accounts, then select the account from the Markup income account drop-down list.
  4. Click Save, then Done.

Once all set, you can start entering billable expenses to incur customers with markups.

 

Upon sharing this solution, I still suggest consulting your accountant. They can provide specific instructions if you need to use a different account to track markups.

 

Don't forget to click the Reply button below if there's anything else you need about this. Just tag my name, and I'll get back to you.

    L
    ld-koreAuthor
    March 26, 2021

    Thank you for that information! It was very helpful. Since the Markup % was not set up at the beginning of 2021, is there a way for me to record any/all markup income retroactively? 

      JoesemM
      JoesemM
      March 26, 2021

      Thanks for getting back to us, @ld-kore.

       

      Since the Markup % are haven't set up, you'll need to delete and recreate the billable invoices. This way, you get the new total of your invoices. 

       

      Before doing so, make sure to take note of the details before you delete the transaction. Let me show you how.

       

      If you haven't created a billable expense, here's how:

       

      1. Click the +New icon. 
      2. Choose Expense.
      3. Add the Payee's name.
      4. Select a category and enter the amount.
      5. Check the Billable box and add the customer's name.
      6. Enter the needed details.
      7. Click Save and close.

       

      Once done, recreate the invoice add the billable expense.

       

      1. Click the +New icon then select Invoice.
      2. Enter the necessary details.
      3. Click the little arrow on the upper-right hand corner.
      4. Select Add on the billable expenses.
      5. Click Save.

      For more details, check out these articles:

       

       

      Also, I'm adding this article that will guide you on how to manage your expenses and track billable time by job in QuickBooks Online: 

       

       

      If you have any questions about markups or any other QuickBooks topic, let me know by clicking the Reply button below. I'm here to provide further assistance whenever you needed one. 

      O
      OBO_Usering
      October 13, 2022

      QBO is absolutely ridiculous for not resolving this lol. Elementary. I just went through another post about this dating back to 2017. All the moderators suggest giving feedback on the platform so I have taken their advice to heart. I now spam their feedback department a few times a day for this issue. I suggest everyone here does the same. 

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