Recording of customer support royalties

To record customer support royalties in QuickBooks, you typically need to create a sales transaction, such as an invoice or a sales receipt, depending on when you recognize the revenue. Here’s a step-by-step guide for both methods:

Method 1: Creating an Invoice

1. Log in to QuickBooks: Open your QuickBooks account and ensure you’re in the correct company file.
2. Create an Invoice:
   • Click the “+ New” button.
   • Under the “Customers” section, select “Invoice.”
3. Select the Customer:
   • Choose the customer who is entitled to the customer support royalties.
4. Service Date:
   • Enter the date when the customer support services were provided, which may be the date for which the royalties are being calculated.
5. Add Royalty Items:
   • In the “Product/Service” column, select the appropriate royalty items or services that have generated the royalties.
   • Enter the quantity and rate for each item, and QuickBooks will calculate the total amount.
6. Payment Terms:
   • Specify the payment terms on the invoice, such as the due date for payment.
7. Save the Invoice:
   • Click “Save and Close” to save the invoice.

Method 2: Creating a Sales Receipt

1. Log in to QuickBooks: Open your QuickBooks account and ensure you’re in the correct company file.
2. Create a Sales Receipt:
   • Click the “+ New” button.
   • Under the “Customers” section, select “Sales Receipt.”
3. Select the Customer:
   • Choose the customer who is entitled to the customer support royalties.
4. Service Date:
   • Enter the date when the customer support services were provided, which may be the date for which the royalties are being calculated.
5. Add Royalty Items:
   • In the “Product/Service” column, select the appropriate royalty items or services that have generated the royalties.
   • Enter the quantity and rate for each item, and QuickBooks will calculate the total amount.
6. Payment Method:
   • Specify the payment method that was used to disburse the royalties to the customer.
7. Save the Sales Receipt:
   • Click “Save and Close” to save the sales receipt.

By following these steps, you can accurately record the customer support royalties in QuickBooks. The choice between an invoice and a sales receipt depends on when you recognize the revenue. If payment is received at the time of generating the royalties, a sales receipt is appropriate. If you expect payment at a later date, use an invoice.

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