Recurring Transactions Feature in QBO
By Mahoney
Save Time: Handling Recurring Transactions in QBO
Do you want to save time? Of course, you do! Here is one way to save time when recording accounting transactions. Each month, you have multiple entries that are either similar or exactly the same as they were in prior months/weeks. QuickBooks® Online (QBO) accounting system has a recurring template feature that allows you to easily enter recurring transactions. The feature is available in QuickBooks Online Essentials and QuickBooks Online Plus!
First of all, create a template for recurring transactions such as recurring expenses. You can do this for any transaction except bill payments and time activities. Here is how you set up and make those most of recurring templates.
Steps to create a new recurring template are below.
In QBO, go to Settings:
- Select Recurring Transactions.
- Select New.
- Select the type of transaction to create, and then Select OK.
- Enter the Template name.
- Select a Type: Scheduled, Unscheduled, or Reminder.
- Complete the fields and select Save Template.
Before you select the recurring template type, be sure you understand the different types of recurring templates:
Type 1: Scheduled Recurring Template
Create a series of transactions according to the schedule you set. If you choose to send them by email once created, they are sent automatically. You can choose to be notified when the transactions occur. Either way, they’re recorded without any extra work from you. The Scheduled Template is used for transactions with a fixed schedule and fixed amounts that don’t change. This would include rent payments and depreciation.
Type 2: Reminder Recurring Template
Create a schedule to remind you to create transactions. You have to actively create and send them once you get the reminder. If you view your Dashboard, you can see Tasks. Then select Action and View Reminders. Then select a Reminder to review, edit, or create. The Reminder Template is used for transactions that need to be edited before they’re created, such as utility bills.
Type 3: Unscheduled Recurring Template
Save this template with partial or complete data and without a schedule. Nothing happens to this type of template until you choose to use it. The Unscheduled Template is used in transactions with a lot of details that you don’t want to retype but aren’t needed on any set schedule. One example is complicated invoices that need to go to different customers.
How to Use Your Recurring Transaction Template – You have to actively create and send recurring transactions once you set the template up. Here is how you access the template:
- Go to the Settings cog
- Choose Recurring Transactions
- Choose the template in the Action column dropdown menu
- Select Use the template as a starting point for a new transaction
- When the transaction is open, make any changes as needed
You may wish to create and use a recurring “sales receipt” to automate credit card payments from your customers.
One word of caution – if you change a “scheduled” recurring transaction, QBO can unintentionally alter prior posted recurring transactions. Always create a new scheduled transaction instead of editing or changing an existing one.
Be sure to review your recurring transaction list in QBO. To see all your recurring transactions in one place, open a Recurring Template List report.
Get a Recurring Transactions Template List:
- Go to Reports.
- Find and open the Recurring Template List.
- Select Customize to customize the report.
- Select to expand the Filter section.
- Select the Distribution Account checkbox.
If you need to delete an account from your chart of accounts, first make sure there aren’t any recurring transactions linked to it. Use the recurring transaction template list above. See the “Distribution Account.” Review this and take note of any templates that use the account you want to delete. You will have to delete the recurring template before you delete the account. Don’t forget to create a new recurring template.
Contact Mahoney with Questions
At Mahoney, we are happy to answer any questions you may have about QuickBooks Online or our bookkeeping and accounting services. Reach out to Associate Director and QuickBooks ProAdvisor Peggy Prall, and she can assist you in this matter. Don’t miss our other QuickBooks articles for more tips.
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