How Package Revenue and QBO Works with Packages

Prerequisites

1. Setup a Package

Description

When a package is purchased the package funds go the account that is assigned when setting up the package. If a QBO item is assigned, package funds will also go to the QBO product and service. If a QBO item is not assigned (most common), then the package funds will go on the users profile in QBO as an account credit and function the same way as package funds do in FSP. 

If using package balances, then FSP will have individual balances for each of the packages but the user will have one balance on the QBO side that will consist of all of their packages and account funds rolled up since QBO does not have a concept of multiple account balances. 

1. Setup our package with an account and no QBO item, then continue your package setup as usual. For additional assistance setting up packages, see Setup Billing Packages.
2. Invoice a student for the package. For additional assistance, see Invoicing for Packages. In this example, I have paid $1000 towards our package.
3. Invoice a student for package hours. In this example, I have invoiced for 1 hour of Ground Instruction, 1 hour of Flight Instruction and 1 hour of Aircraft Rental against the package.
4. Run reporting. In this example, I am running the Sales by Account Report. Cash recognizes the revenue at sale, Accrual recognizes the revenue on the activity date.
   
   Cash
   Package was sold on 2/1. I will see the $1000 paid towards the package in the account assigned in the package setup. Ground Instruction, Flight Instruction and Aircraft Rental took place on 5/8. I will not see the Ground Instruction, Flight Instruction and Aircraft Rental funds on the sales by account on 5/8 as the revenue has already been recognized on 2/1. 
   
   Accrual 
   Package was sold on 2/1. I will not see $1000 paid towards the package in the account assigned in the package setup. Ground Instruction, Flight Instruction and Aircraft Rental took place on 5/8. I will see the Ground Instruction, Flight Instruction and Aircraft Rental funds on the sales by account on 5/8 as the revenue is being recognized at the time of the activity.
   The accounts being used for Ground Instruction, Flight Instruction are coming from the account assigned in Settings > Billing Hub > Instruction Rate Types for ground and flight instruction (or custom hours if applicable for your package). The accounts being used for the Aircraft Rental are coming from Settings > Billing Hub > Aircraft Rate Type > Standard Rate.
5. Sync to QBO - without a product and service assigned on the package setup
   The 2/1 transaction for $1000 towards our package synced as a payment to the account.
   The 5/8 transaction for Ground Instruction, Flight Instruction and Aircraft Rental synced to QBO as a sales receipt and used the previously applied account funds (from the 2/1 $1000) and reducing our QBO account balance accordingly.