To record the sale of customer support royalties in QuickBooks, you should create an invoice to bill your customer for the support royalties and then 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 “Support Royalties.”
- Create an Invoice:
- Go to the “Customers” menu and select “Create Invoices.”
- Choose the customer or client who is paying for the support royalties.
- In the “Item” column, select the support royalty item.
- Enter the amount of the support royalties in the “Rate” column.
- In the “Tax” column, select the appropriate tax code if applicable.
- Save the invoice.
- Receive Payment for Support Royalties:
- After issuing the invoice, receive payment for the support royalties from your customer.
- Go to the “Customers” menu and select “Receive Payments.”
- Choose the customer and locate the invoice you created for the support royalties.
- Enter the payment amount and payment method.
- Click “Save.”
- Track Support Royalties Income:
- You can track the income from support royalties you’ve received in QuickBooks’ various reports. Go to the “Reports” menu and explore reports such as the Profit and Loss statement, Sales by Customer Detail, or Sales by Product/Service Detail to monitor your income from support royalties.
- 1099 Reporting (if applicable):
- If you are the recipient of support 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.
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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