How to Convert a Sub-customer to a Project in QuickBooks Online

Projects in QuickBooks Online should be used to record time and expense. However, if you have converted your system from QuickBooks Desktop, you will not see any projects, and instead will see Sub-customers where you previously recorded time and expense. Although a Sub-customer can be useful to roll up data for reporting and invoicing reasons, you should use a project instead to record time and expense. Fortunately, QuickBooks Online allows you to convert a Sub-customer into a Project.

Mark Vieno
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16 steps
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3 minutes

Alert! Converting a Sub-customer to a Project is irreversible. Once you make the conversion, you will not be able to convert the Project back to a Sub-customer.

Click "Customers" to find your the Sub-customer that you want to convert to a Project.

Click the Sub-customer that you want to convert to a Project.

Click "Edit" when the Sub-customer opens.

Ensure that "Bill parent customer" is selected.

Click "Save"

Tip! The conversion will fail if any unbilled time or expense is associated with the sub-customer, so ensure that you follow the next step.

Click "Edit" for any open transactions listed for the sub-customer. "Open" means that the transactions have been coded as "Billable". In order to convert a sub-customer to a project, you will either need to invoice all the billable items first, or uncheck the Billable check box for each.

Click the "Billable (/hr)" field to unselect it for billing and then save the record. Do this for all items that are "Open".

After removing all billable items from the sub-customer, click "Projects" on the left-hand menu.

Click the down-arrow next to "New Project".

Alert! Click the down arrow. Do not try to create a new project. You want to convert from a sub-customer.

Click "Convert from sub-customer".

Select the Sub-customer that you want to convert.

Tip! You can select more than one sub-customer for the same customer.

Select the appropriate status.

Click "Convert"

Click "Continue"

Click "OK"

Your Sub-customer is now converted to a Project.