Hello there, sean-idrivegloba.
I recognize how vital for your company to properly track your client's contract. I'm here to guide you on how to handle your concerns.
QuickBooks Online (QBO) calculates your revenue based on the accounting method set in your account. For cash basis, you'll not see the $120,000 (set up annually) amount because income is realized when the invoice is paid. If you use the accrual method, your report includes income and expenses regardless of whether the invoice or bill was paid or not.
To set up the 3-year contract, you may want to divide $120,000.00 to 36 months. Next, create a recurring invoice with the monthly amount.
However, I still suggest consulting an accountant for further guidance. They can provide advice on how to handle the situation and ensure revenue is recognized properly in the online program.
If you wish to get a list of all your recurring transactions and the accounts they're linked to in QBO, check this reference for detailed instructions: Review your recurring transactions.
On the other hand, you may want to utilize progress invoicing to track the transaction. It's a useful tool that enables you to bill customers incrementally as a project or job progresses. Thus, you may receive partial payments during the course of the task.
I've attached some links that tackle revenue recognition and other sales-related activities:
Reach out to me again if you have clarifications about recurring invoices and additional questions about revenue recognition. I'll get back and make sure to respond to them.
