Budget - Business Income shows in budget when client is invoiced not when payment is received
I set up a budget for my business in Quicken in 2017. I am a cash based business. I use a [client invoice] account to receive client payments, matching payments against the Quicken invoice that I sent. The client payments are received via the "receive a customer payment" form, then directed into my business checking account. As I understand it from Quicken Help, this A/R type account [Client Account] can be used for both accrual and cash accounting methods.
In my 2017 budget I have a category called business income and it is assigned to the category group of the same name. I ensured the category was tied to Sched. C Gross Receipts (image 1). In 2017, I noticed that my client invoiced amounts showed up in my budget "actuals" column when they were invoiced and not when payment was received (image 2).
I didn't expect this at all. I would have expected the client payments to show as "actuals" in my budget when I "received the customer payment" in Quicken. So..... how does Quicken's budget feature treat business income actuals - when invoiced or when payment(s) received?
Fast forward through 2018 and into 2019, I now have the client on a payment plan and I am receiving periodic payments. I was never able to show these client payments as business income in my budget through 2018 or 2019 (image 3). Each time I would receive a client payment, I would use the "receive a customer payment" process.
I've taken yet another effort to figure out what is going on here. My expectation was to budget-out the client payment plan and show payments against this plan regardless of when it was invoiced. I can't seem to figure out why client payments do not show in my budget actuals, business income category when....
- The tax center's projected tax table and income tab shows correctly business income (client payments) (image 4).
- Business Reports> Profit/Loss Statement, Cash Flow, and Schedule C and Tax Schedule show correctly business income (client payments).
Oddly enough, the Business Report > Accounts Receivable also shows the same business income (client payments) when the [client invoices] account (which I thought is A/R) shows the value of the invoices less customer payment to date. Two very different figures.
What is happening? Is there some connection not being made between A/R account, business income, tax line assignments? Have I used the A/R account incorrectly when I am a cash business? Are Quicken budgets incorrectly attributing client invoicing rather than client payments? Illegal category naming (business income) named the same as the category group. Running out of ideas! Anyone experienced in Quicken's business / budget features who can provide any addition insight? This one is escaping me!
2019 QW HBR r18.15
Image 2 - Invoices sent, budget shows actuals = invoice value in the month invoice is sent
Image 3 - Budget does not show actuals upon customer payment receipts in Jan and Feb.
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