How do I add an income account when creating an invoice? The only choice we have is Produce/Service, but these aren't income accounts. We just converted to QB Online.

Hello, WebeRE.

I'm here to share information about creating invoices in QuickBooks Online (QBO).

In QBO, the functionality to generate an invoice using an income account directly is not currently available. Instead, QBO operates based on product or service items. Each item includes a designated selection that allows you to specify the account to which the transaction is posted. This approach ensures that your invoicing process is aligned with the product or service items you offer, providing a structured and accurate representation of your business's financial activities.

If you haven't yet, here's how to create a product or service item:

1. In QBO, go to Get paid & pay or Sales, then select Products & services.
2. Click New, then select Non-inventory or Service.
3. Enter a Name for the product or service and an SKU, if you track them.
4. From the Category ▼ dropdown, choose the category that best describes your product or service.
5. If you sell the item, confirm the checkbox is selected for I sell this product/service to my customers.
6. In the Description on sales forms field, enter a description. This is what your customers will see on their sales form.
7. Enter an amount in the Sales price/rate field.
8. Pick the account you want to use to track the sale from the Income account ▼ dropdown.
9. In the Sales tax section, sales tax is applied by default based on location.
10. Once done, hit Save and Close.

To learn more about managing and adding product and service items, check out this article: Add product and service items to QuickBooks Online.

After that, you can now proceed with creating invoices. In case you need to change or edit the income account for a product or service item in the future, refer to this article for the detailed steps on how to do it: Change the account for a product or service item in QuickBooks Online.

Please leave a comment below if you have follow-up questions about invoices or anything else, WebeRE. I'll be here to assist. Take care.