QB Issue Resolution:

As of now, there’s no way to create an invoice that separates income into different periods. There is a workaround, but it involves an extra step at the end of each month. More specifically, you will create a month-end zero-balance invoice under this customer; this will accrue any uninvoiced services performed by the end of the month as unbilled receivables.

 

Initial Setup

  1. Create an Other Current Asset account for Unbilled Receivables.
  2. Create a new Non-inventory or Service item for Unbilled Receivables. Under “Income account”, select the newly created current asset account

 

Month-End Procedures

  1. Create an invoice for customer (NOTE: This invoice will not be sent to the client)
  2. Date invoice for the end of the month
  3. Add all billable time and expenses as of month-end to the invoice.
  4. On a separate line below all the other billable time/expenses, select the Unbilled Receivables item.
  5. In the Amount column, enter the subtotal of the invoice as a negative. This will zero out the invoice balance.
  6. You will notice the month-end income is now reflected on the income statement, and the month-end total to be included on subsequent invoice is reflected on the balance sheet as Unbilled Receivables.

 

Actual subsequent invoice

  1. Create invoice as normal. Enter all remaining billable time/expenses for the bi-weekly period.
  2. On a separate line below all the other billable time/expenses, select the Unbilled Receivables item.
  3. In the Amount column, enter the balance of the Unbilled Receivables for the client, but as a positive. The invoice will now include all amounts to be invoiced for the bi-weekly period.
  4.  Unbilled Revenues on the balance sheet should now have no balance since the amounts have now been properly invoiced. On the income statement, bi-weekly services performed after month-end is reflected in the subsequent month.
  5. Apply the payment to this invoice as you normally would.

 

Hope this helps!

Resolution for Issue 'I am a consultant and bill my clients for hours worked. One of my clients recently asked me to start invoicing him every two weeks rather than twice-monthly. This means that some invoices will cross a month-end boundary and include hours worked for two different months. As I am using accrual-based accounting, I would like the Invoice & Payment to be split so that the proper amount of sales are recorded for the correct months. I have been using the weekly timesheets and when I add the time entries to my Invoice I have been combining all like entries into a single Invoice Line Item. I provide weekly timesheets separately and that detail doesn’t need to be included in the invoice. How do I need to go about creating the Invoice and applying the single Payment so that it is split across the two calendar months? Thanks, Daniel' available: Yes (Solved).
Source: Intuit Community forum.

I am a consultant and bill my clients for hours worked. One of my clients recently asked me to start invoicing him every two weeks rather than twice-monthly. This means that some invoices will cross a month-end boundary and include hours worked for two different months. As I am using accrual-based accounting, I would like the Invoice & Payment to be split so that the proper amount of sales are recorded for the correct months. I have been using the weekly timesheets and when I add the time entries to my Invoice I have been combining all like entries into a single Invoice Line Item. I provide weekly timesheets separately and that detail doesn’t need to be included in the invoice. How do I need to go about creating the Invoice and applying the single Payment so that it is split across the two calendar months? Thanks, Daniel: 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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