How do I manage Pre-Paid Support Hours?

One way is to Receive Payment under the customer's name. This will place a credit in A/R for that customer.

Create Invoices for the customer as you use hours.

Use the Statement feature in the Customer menu to then issue a statement. If you choose the option to include invoice details then the statement will show $XXX at the top, as a credit, then show the hours/amounts you billed against that money and whatever the remaining credit or balance due is.

We will be doing the same thing where I work. However, we want to send an invoice ahead of time so the customer sends us the money up front; we don't necessarily given them an "accounting" unless they ask for it. My idea is to send an "Estimate" to get the money, and then follow with Tara's idea. Does this sound workable as well?

Kathy

?? Which do you want to use, an invoice? or an estimate?

Check with your accountant regarding the possible consequences of accepting long-term payments on accounts. Once that is sorted out then yes, you could couple using the Estimate WITH progress invoicing.

Create a QB Estimate up front, detailing the terms of the contract -- number of hours and rate charged. You can modify the estimate template within QB to reflect that it is a contract for services.

Enter the hours contracted and the rates per hour.

When the customer sends in the payment, use the Receive payment window to credit the customer (remember to use the specific customer:jobname of the estimate, and not the parent account).

Throughout the year, as services are used, create progress invoices from the original estimate. Go to the 'Receive Payments' window, and apply the credit from the initial payment to the progress invoice(s) created. It is up to you whether or not you wish to send copies to your client. At any point you will be able to see the customer balance on the account, and additionally, report on the hours left on the invoice.