To book customer software royalties in QuickBooks, you’ll want to set up an income account, record the royalties, and track the income received. Here’s a step-by-step guide on how to do this:
- Set Up an Income Account:
- Go to the “Lists” menu and select “Chart of Accounts.”
- Click “Account” at the bottom and choose “New” to create a new account.
- Select “Income” as the type of account and name it something like “Software Royalties” or “Customer Software Royalties.”
- Record the Software Royalties:
- Go to the “Customers” menu and select “Receive Payments.”
- Choose the customer or entity who is paying the software royalties.
- In the “Payment Amount” field, enter the amount of the software royalties you’ve received.
- In the “Deposit To” field, select the bank or income account where you want to deposit the royalties.
- Add relevant details such as the payment date and payment method.
- Click “Save.”
- Track Software Royalties Income:
- You can track the income from software royalties you’ve received in QuickBooks’ various reports. Go to the “Reports” menu and explore reports such as the Profit and Loss statement to monitor your income from software royalties.
- 1099 Reporting (if applicable):
- If you are the recipient of software royalties and are subject to IRS Form 1099 reporting, make sure the paying party has your Tax ID or Social Security Number on record. This information will be needed for 1099 reporting.
By following these steps, you can accurately book and track your customer software royalties in QuickBooks. Always consult with a certified accountant or tax professional to ensure that you are handling income, taxes, and financial matters in accordance with local laws and regulations. Additionally, QuickBooks may have undergone updates or changes since my last knowledge update in September 2021, so it’s a good idea to refer to the latest QuickBooks documentation or reach out to their support team if you have any questions or need assistance with specific features or issues.
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