Recurring Payments

What Is a Recurring Payment?

A recurring payment is an invoice or sales receipt that automatically repeats on a schedule you choose—weekly, monthly, quarterly, or any frequency you need. When you set up a recurring payment, QuickBooks Online handles the repetitive work. You decide on the details and schedule; the program will do the rest.

This article will focus on automatic payments when you have the customer’s payment information on file. If you would like to learn how to set up a recurring customer invoice, read this article.

Step-by-Step Guide to Creating a Recurring Sales Receipt Transaction

• Go to the Gear Icon in the upper-right corner of your screen.
• Under the list menu, select Recurring Transactions. This will bring up a list of all your recurring items.
• Click New in the top right corner to create your new recurring transaction.

• Choose the Sales Receipt for the transaction type if you charge your customer’s card/bank account automatically (using QuickBooks Payments or another payment processor).
  

• Name Your Template with a familiar name, like “Customer ABC Company Monthly Service Fee.” This will help you quickly find it later if you want to make changes.
• Select Scheduled for the Type if you want QuickBooks to create, process, and send the receipt repeatedly automatically.
• Set the Interval and Start/End Dates in the Interval section. In the Interval section, select how often you want the transaction to repeat (e.g., daily, weekly, monthly). Enter the Start Date (the first date you want this transaction to begin) and, if necessary, an End Date (the last date you want to charge them). You can leave this section blank or choose None if there’s no end date.
• Select the Customer from the list and enter the Products/Services you’re charging for, the Rate, Quantity, and other relevant details. If needed, add discounts or Sales Tax (depending on your local rules).

• Save the Template after double-checking your information for accuracy.

Tips for Success

• Verify payment details to seeif you’re processing payments automatically.
• Keep Customer Information Updated so receipts go to the right person or email address.
• Review from Time to Time to ensure correct pricing, products, and services.

Automating these transactions minimizes errors and reduces the chance of forgetting to process your customers’ payments. Creating recurring payments in QuickBooks Online is straightforward, saves time, and improves cash flow.