Quickbooks, specific question

Discussion in 'Business Operations' started by ksland, Feb 7, 2004.

  1. ksland

    ksland LawnSite Senior Member
    Messages: 927

    Can you guys tell me the best way or ways to do what I am trying to here.....

    I use quickbooks and enter charges for mowing under each customers register. I then create a statement and send that at the end of the month. This works great and I love it. Well, How can I bill for a mowing/plowing agreement (or any service agreement) with 12 equal monthly payments. For instance customer Jane $45 mow, 26 visits a year is $1170 a year and I want to bill out $97.50 each month.
  2. bcx400

    bcx400 LawnSite Member
    from PA
    Messages: 77

    Ksland- try creating an estimate for the monthly charges for each customer. Whenever you want to create an invoice, go to the estimate for that customer and click 'create invoice.' I think this may be easier that using each customers' register. Also, you will have an easier time generating A/R reports, open invoice reports, etc.
  3. charlies

    charlies LawnSite Senior Member
    from earth
    Messages: 587

    i think the proper way would be to have a statement that shows the total owed on the contract and the current amount due. i don't do this myself, so i don't know how to do it in quickbooks, but i would estimate 1/2 hour to learn it, by clicking around in qb and using the help menus.

    the quick and easy way would be to create a new invoice item called something like 'contract payment' and create an invoice/statement each month for the 1/12th due. of course this would make a report on income by item harder to read because it would put the income from this in the 'contract payment' catagory instead of the 'mowing' (or whatever you call it in your qb) catagory.

    sounds like this customer might be open to a couple other regularly scheduled services.
  4. ksland

    ksland LawnSite Senior Member
    Messages: 927

    This is exactly my problem. Anyone else?
    BCX- Again I send out statements not invoices so your method won't work for me.
  5. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 6,169

    If you go to list then items then new you can make a new item, the description would be; monthy lawn mowing contract payment, you call the item mlmt. Quickbooks calls the bill you send your customer a invoice so when you make a bill for your customer, a invoice under item you type mlmt or choose it from the drop down list. When you create this item under accounts you put lawn mowing and it will group this income with all your other mowing income if you specified in your other mowing items under accounts lawn mowing . I'm not sure this makes any sense but if you open the lists to create a new item you probably see what I am talking about.
  6. ksland

    ksland LawnSite Senior Member
    Messages: 927

    Yes, This will work I guess. I still have questions as to full servie contracts that may include leaf cleanups, plowing, mowing and pruning. By entering one charge the proper amount for each item won't show up in reports. I guess I could divide each service by 12 or 9 depending on payment schedule and figure out which charge goes where but that sucks. Say for instance I charge $200 a month for 12 months total of $2400, this includes weekly mowing, spring/fall cleanups and pruning 2 times. When I enter the charge of monthly installment it will show up on a monthly installment line in a report instead of dividing say 100 to mowing, 25 to pruning, and 25 to each fall cleanups and spring cleanups. For just mowing, I created an item for mowing agreement which is a sub category of just plain mowing so it will read properly on graphs, If I did that for each service included in the agreement I would still need to figure which percentage of the monthly payment goes where. Get what I am saying? Maybe I am asking for too much. But basically I need like splits on the item line. I don't want 3 different charges and amounts listed on the statement that equal in total the monthly installment amount. I guess I could create an invoice with the divided amounts and it would only show up on the statement as invoice # and amount but that can be confusing when there may be other invoices billed that month to the same person.
    And another thing, I need to keep track of the mowing dates to make sure the customer didn't underpay or overpay. Basically my mowing agreement is a estimate for mowing for the year that they pay equal payments on. If it goes over or under it gets adjusted on the last invoice. So the best thing I see would be to use the customer register to record charges as usual but somehow bill requesting the agreed monthly fixed price. This would then lower the amount due and hopefully stays pretty close to zero by season end. Kind of like your workers comp policy, you pay premium for 60k in payroll and if you go over or under it is adjusted at the end.
  7. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 6,169

    ksland, I do not know how to do get quickbooks to itemize your income without itemizing your invoice. You may be able to do that but I don't have that expertize. As far as keeping track of mowing visits I keep a separate ledger that I tranfer to quickbooks to bill that I described in another thread"Quickbooks billing question." which as of now is on page three of posts. I hope some of this will help, if not maybe somebody who is more experianced in QB will help you.
  8. John from OH

    John from OH LawnSite Member
    Messages: 144


    I think we had the same problem. What we did was create an invoice breaking out each service based on the yearly total divided by the number of months of the contract, ie, 12. For easy calculations, lets say mowing was $1200 per year, $100/ month; pruning at $600/year, $50/month; and so on. We created an invoice listing mowing at $100, pruning at $50, and so on. In the memo field, lower left, we typed in Monthly Landscape Management Fee. Memorize this invoice with a monthly reminder. Each month when the invoice reminder comes up, enter the invoice. Next, create a statement for the customer. Their statement will show an invoice number with the Monthly Landscape Management Fee. Your reports for the month will show $100 mowing and $50 pruning for this customer for this month. Its not 100% since you won't prune every month, but it will be close and the end of the year will be accurate.
  9. IndyPropertyCare

    IndyPropertyCare LawnSite Member
    Messages: 201

    We have accounts that require the annual amount to be paid in 12 monthly installments. Only the weekly services are paid this way, all others are due as completed. We start 1 invoice for the total amount ( itemized ) and note the monthly amount that is due with the contract number and any other information. Each month a statement is generated and the payment is applied to the invoice, reducing the annual amount owed. The other way is to do it as a revolving account w/o interest or fees.
  10. KCLandscape

    KCLandscape LawnSite Senior Member
    Messages: 524

    Why statement?
    Invoice works fine, just bill monthly

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