Business Income Statement not showing client payments as income.

Question

I am using Quicken Classic version 8.5.1 on Mac OS 15.7.4.  Trying to prepare reports for taxes and when I create the Business Income Statement, even though the Client Payment category is checked and included, they do not show up as income. All of the transactions have been tied to the right business and multiple invoices paid. Why are the payments not showing up?

jacobs · Answer

On an invoice you are not required to set a product or service on an invoice line item.

@Quicken Michael I wonder if that is something you should consider changing? Are there users who really, intentionally, don't want to take a second to categorize their income? Even if they have only one product/service, wouldn't users want to see that income attached to their preferred category? In my experience with other business accounting systems, I can't recall there being an instances in which you could bill someone without tying it to some category of revenue (e.g. G/L account) by selecting a category or a product tied to a category. You've designed it to be so flexible that a user doesn't need to select a product on an invoice — something I actually never even thought to try during testing! — but I'm wondering if that ends up causing more confusion for users down the road than if you just made Product a required field.

Quicken Michael · Answer

Hi @DinShawnee,

I wanted to follow up and provide a bit more information about Client Payments.

Client Payments are intended to be used when you are receiving a payment for an invoice. If you are not applying a payment to an invoice, you should use a different business income category.

If you record a transaction as a Client Payment but do not apply it to an invoice, it will appear in the Business Income Statement report as Client Credit when the report is run on a cash basis. This appears and is filtered as the date of the transaction of the Client Payment transaction.

If you run the Business Income Statement on an accrual basis, income is not shown until the income is earned. This means Unapplied Client Payments never appears on this report under accrual.

On an invoice you are not required to set a product or service on an invoice line item. If no product or service is selected, the amount will appear as Other Invoice Income.

I hope this helps. Please let us know if you have any further questions or concerns.

DinShawnee · Answer

I want to say thank you to both Kristina and Jacobs for responding. Jacobs has it right. I went back into the paid invoices and added an income category in the Product/Service column and the amounts now appear as Business Revenue in the income statement. My work is all service oriented and except for expenses to be reimbursed I had no need to include anything in the invoices for my services except under the description column. It seems odd that Quicken would not treat a client payment on an invoice as income. That just seems to be common sense to me. In any event, thank you Jacobs for helping me out. To answer Kristina's question, the date range was all of 2025. The report was including income from the paid expenses billed on the invoices, but no - client payments do not appear at all - either as income or expenses. This seems to me to be a flaw Quicken should fix. Everytime I bill a service I should not have to include a category for income as a line item. If client payments on invoices are not income - then what else would they possibly be? Perhaps there is a reason to assign a specific income category that is not relevant to my type business. Thanks again.