QB Issue Resolution:

The suggestion you’ve shared, which is to issue an invoice dated August 2021, also works. However, I’d recommend reaching out to your Accountant. They’re the best support that can guide on what’s the best way to record the invoice.

 

I’ve also added these articles for more information when recording an invoice:

 

 

Feel free to get back to me if there’s anything that I can help!

Resolution for Issue 'Hello, need some help as I feel I am making a mess of our Quickbooks Online records. My wife runs a wedding design business. It is common for her to prepare an estimate for a client in Year 1 for services to be provided a few months later or in a separate fiscal year altogether, e.g. Year 2. In the meantime, the client sends a payment for an initial payment of 25% of the total price and makes subsequent payments right up to the wedding event date. First, we started by issuing invoices and receiving payments against the invoice. However, at tax time, it caused confusion because the invoice date triggered revenue for the event to be recognized (even though the event doesn’t take place until the next year…and not all the payment amounts have been received). My bookkeeper advised we only issue Estimates, receive payments as Credits for the customer, and issue the invoice closer to the event date applying all the received payments. We are doing this now but have a few issues- 1) Estimates don’t show payments to date and balance due so we have to separately email clients what they have paid/owe; 2) No live link to the Estimate so we can’t see how often the Client has viewed it. And 3) I feel I’m just doing it wrong and there has to be an easier way. I believe we are recognizing revenue on an accrual basis which is why we are using invoices to determine revenue recognition. Would it be easier to simply change the “invoice date” after an invoice is created to the future wedding event date and simply receive payments as they come due and apply to the invoice? If this solves the revenue recognition issue, we can revert back to what we originally did that kept things simple and provided audit history details, balance due information, etc. Thank you.' available: Yes (Solved).
Source: Intuit Community forum.

Hello, need some help as I feel I am making a mess of our Quickbooks Online records. My wife runs a wedding design business. It is common for her to prepare an estimate for a client in Year 1 for services to be provided a few months later or in a separate fiscal year altogether, e.g. Year 2. In the meantime, the client sends a payment for an initial payment of 25% of the total price and makes subsequent payments right up to the wedding event date. First, we started by issuing invoices and receiving payments against the invoice. However, at tax time, it caused confusion because the invoice date triggered revenue for the event to be recognized (even though the event doesn’t take place until the next year…and not all the payment amounts have been received). My bookkeeper advised we only issue Estimates, receive payments as Credits for the customer, and issue the invoice closer to the event date applying all the received payments. We are doing this now but have a few issues- 1) Estimates don’t show payments to date and balance due so we have to separately email clients what they have paid/owe; 2) No live link to the Estimate so we can’t see how often the Client has viewed it. And 3) I feel I’m just doing it wrong and there has to be an easier way. I believe we are recognizing revenue on an accrual basis which is why we are using invoices to determine revenue recognition. Would it be easier to simply change the “invoice date” after an invoice is created to the future wedding event date and simply receive payments as they come due and apply to the invoice? If this solves the revenue recognition issue, we can revert back to what we originally did that kept things simple and provided audit history details, balance due information, etc. Thank you.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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