Set up a recurring transaction template in QuickBooks Online
Recurring transactions are entries that repeat regularly, such as monthly, quarterly, or yearly. The transaction could have the same payee, ledger accounts used, and amount. The type of transactions includes newspaper subscriptions, rent expenses, or depreciation for office equipment. Of course, there are more; these are just a few examples of repeating entries.
Repeating entries can be a tedious and necessary task. Instead of manually recording them each time in QuickBooks Online, you can set them up as recurring transaction templates, relieving you of this repetitive burden. How do you do that?
Recurring transaction template
There are two methods of creating a recurring template in QuickBooks. The first method is to set it up while recording the transaction. For example, you enter an expense payment for a newspaper subscription; before you click the save and close button, click the make recurring option at the bottom of the page and follow the wizard to make the entry recurring.
Another method is to create a template without first recording a transaction. This method gives you complete control, as there is only a ledger impact once you activate the recurring transaction or when it is due according to your schedule. Click the Gear icon at the top right corner of the QuickBooks Online page and select the recurring transaction option. Then, click the New button on the recurring transaction list to add a new template.
QuickBooks will prompt you to select the recurring transaction type, such as sales invoice, bill, payment, sales receipt, journal, etc., before proceeding to the next stage.
QuickBooks Online will then open a transaction page you wish to record, with a recurring setting at the top of the transaction. For example, creating a recurring invoice will launch a “new” invoice with a recurring setting above the Billing address, a template without impact on the ledger.
Every template has a name. For example, a Newspaper Subscription could be a good name for a subscription payment recurring template.
Annual recurring transactions, such as accrued expenses, could be set as reminders; they prompt according to the number of days you have set in advance. If you have a fixed type of products or services to invoice the customers, you could set the recurring as unscheduled. You can easily activate the template whenever an order is coming in, change the client name and date of the invoice, and you are good to go if there are no changes in the items, accounts, or the amount. Of course, you can still edit the invoice information accordingly. The objective of the recurring invoice is to save time in data entry.
Monthly invoices, such as school fees, service maintenance or depreciation, can be scheduled as recurring transactions. With the appropriate period interval, QuickBooks will auto-record the transaction and email if you have set it up to ‘Automatically send emails’ when the transactions are due.
Recurring transactions save the effort of keying, a good feature the user should consider to improve productivity.