Skip to main content
M
mucrick
July 12, 2024
Question

Customer Creation: Parent vs. Serviced Customer vs. Invoiced (Billed to) Entity

  • July 12, 2024
  • 1 reply
  • 0 views

Greetings!  Reaching out for guidance on the "proper" way to create and manage Customers in QBO.

 

We have a dozen customers that are subs of a Parent company.  We created a Parent and set up the individual companies as subs of the Parent.  When services are provided to the individual companies some are invoiced directly while others are invoiced to another entity under the Parent (one we provide no services, one in which a Customer account was not created.)  What is the "proper" way to set up the Customers such that we see the revenue associated with the subs, rolled up to the parent, and the individual subs invoiced to the proper entities?   

1 reply

G
GenmarieM
July 12, 2024

It's great seeing you here in the Community space, mucrick! Managing your customers is crucial for accurate financial workflow in QuickBooks Online (QBO). I'll share with you the process of setting up your customers, allowing for more informed decision-making and a clearer idea of your sales and revenue.

 

When you set up a sub-customer, all the transactions made for the sub-customer will also be reflected on the parent customer's account. If you need to analyze the specific income generated by a sub-customer, you can access a detailed breakdown of their income by running an Income by Customer Summary report. This report will provide a comprehensive overview of the sub-customer's financial contributions and help you assess their individual performance within your accounting system.

 

Here's how you can pull up the report:

 

  1. Go to Reports.
  2. On the search bar, enter Income by Customer Summary.
  3. Click to open the report and customize the date.
  4. Hit Run report.

 

Finally, you'll be able to view the income breakdown for each sub-customer. By clicking the dropdown arrow next to your parent-customer, you can close the arrow and see the total income for all the sub-customers and the parent-customer. You can check the photo below for reference.


 

Moreover, I'm adding this article as your reference in using the Bill Parent customer in QBO: Use the bill parent customer option on invoices in QuickBooks Online.

 

If you encounter any difficulties managing customers and transactions, like sales receipts or estimates, please don't hesitate to let me know by leaving a comment below. I'm available and prepared to help you whenever you need it.

Terms & ConditionsAccessibility statement