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Revenue Recognition - Service Date

Revenue recognition should be based on service dates not invoice date. This is a major issue with QBO that needs to be fixed. Or make it an option in company settings. The date the invoice is mailed, is not necessarily the date the revenue was earned in the case of a monthly invoice with multiple service dates. Or, when a service is performed the last day of the month and not invoice until the next day. With QBO, the income is incorrectly reported in the next month.

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    Anonymous shared this idea  ·   ·  Flag idea as inappropriate…  ·  Admin →

    15 comments

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      • Laurinda commented  ·   ·  Flag as inappropriate

        I agree with the previous comments; there should be a setting option when using accrual basis to choose revenue recognition by either service date or invoice date. This would greatly simplify reporting for clients who bill for an entire year of services in advance.

      • Dallas commented  ·   ·  Flag as inappropriate

        Why has this online feature not yet been implement? Date of original share August 28,2017. Quickbooks I understand you are a technology company providing an online module to simplify small business accounting and reporting however please use think tank and feedback from actual accountants. This is the #1 risk, key performance metric and insight all business owners and users of statements want to understand (revenue). To correctly identify revenue earned the user must understand the basic concept of revenue recognition which is when the revenue is earned, not when an invoice is issued. I agree 100% with the above original comment - please add a feature that allows revenue to be pulled into the P&L reports when the revenue is earned or the service has been performed. I thought the "service date" feature would be this answer, but the functionality still is not available. When is this going to be addressed?

      • Bahadir Ustaoglu commented  ·   ·  Flag as inappropriate

        We really can't use QBO for any kind of reporting without the ability to recognize the revenue based on service date.

      • Nora commented  ·   ·  Flag as inappropriate

        Nonsense. Think about the havoc this would cause. Revenue is based on INVOICED services, not the services themselves. It is up to you to generate invoices for services rendered.

      • KT commented  ·   ·  Flag as inappropriate

        This is essential in my buisness and crazy it is run by invoice date. Please add asap!

      • J Carrier commented  ·   ·  Flag as inappropriate

        I agree with this suggestion and want to add a couple of additional parts to it. There should be a flag under company settings so that when you choose Accrual accounting that you can select Invoice Date or Service Date. In addition if you are going off of service date you need to be able to enter that in for Bills. When reports are run for Accrual, it would then need to be based on that service date. At this point this feature is the one that would take QB to the next level of accounting software out there.

      • Dayv commented  ·   ·  Flag as inappropriate

        I agree with this suggestion and want to add a couple of additional parts to it. There should be a flag under company settings so that when you choose Accrual accounting that you can select Invoice Date or Service Date. In addition if you are going off of service date you need to be able to enter that in for Bills. When reports are run for Accrual, it would then need to be based on that service date. At this point this feature is the one that would take QB to the next level of accounting software out there.

      • Bryan commented  ·   ·  Flag as inappropriate

        I agree with this suggestion and want to add a couple of additional parts to it. There should be a flag under company settings so that when you choose Accrual accounting that you can select Invoice Date or Service Date. In addition if you are going off of service date you need to be able to enter that in for Bills. When reports are run for Accrual, it would then need to be based on that service date. At this point this feature is the one that would take QB to the next level of accounting software out there.

      QuickBooks Online Feature Requests: Billing

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