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June 9, 2021
Question

sharing sales invoice income across several months.

  • June 9, 2021
  • 2 replies
  • 0 views

Hi

A lot of our invoices are for a period of time eg annual support contracts. How do I share the vale of the invoice over several months in Quickbooks? 

Eg an invoice is for 12 months support for £1200, for the year ending 31st May 2022. I want the monthly management accounts to show £100 for that invoice in every month from June 2021 to May 2022.

Thank you

 

2 replies

June 9, 2021

I've got a way you might consider doing, kline.

 

QuickBooks Online has a Progress invoicing feature that lets you split into as many invoices as needed. You'll have to turn this feature on. I'll show you how:

 

  1. Go to Settings and select Account and Settings.
  2. Select the Sales tab.
  3. In the Progress Invoicing section, select Edit ✎.
  4. Select the Create multiple partial invoices from a single estimate checkbox.
  5. Select Save and Done.

Once done, you can now create multiple invoices. To learn more details about the process, please check this article: Set up and send progress invoices in QuickBooks Online.

 

Know that I'm always here to guide you if there's something else you need help on this process. 

klineAuthor
June 10, 2021

Thank you. We don't use QuickBooks to do our estimates so I don't think that would work for us. The invoices have already been issued, eg for an annual service contract.

June 10, 2021

Hello kline, So you would like to show the payment off the invoice in 12 monthly payments? One option would be you could set up a recurring journal entry to the bank account on one side of the journal and the debtors on the other side entering that customer's name and it will reduce the debt and increase the bank monthly. Are you cash or accrual for your accounting? 

June 18, 2021

Hi kline, thanks for getting back to us. When you raise an invoice on an accrual basis, the income will post to the reports such as the P&L on the invoice date, therefore as a lump sum rather than split between the individual months of payment. Are the monthly management accounts set up as income accounts within the Chart of Accounts?

 

Can we also check if the invoice itself paid for by the customer in full at the start of the year when the invoice is issued, or do they pay in installments? 

 

Thanks!

klineAuthor
June 21, 2021

Hi Georgia

 

Thanks for your reply.

 

The customers pay in full at the start of the year. The monthly management accounts are not set up as income accounts within the Chart of Accounts. I know how to set up new accounts within the Chart of Accounts but I'm not sure how I would set up and use the monthly management accounts in QuickBooks. Is there a tutorial video or post for this please?