Sometimes you want to send statements to customers to remind them of overdue balances or to list statement charges a customer owes. There are two types of statements in QuickBooks. The first is called an open transaction statement. This shows only open transactions as of the statement date. This way, a customer knows exactly how much they owe you but doesn’t see the history of payments and credits.

The second type of statement is called “activity based.” This shows you the customer’s activity over a period of time, including payments and credits. In the following practice exercise, you prepare an open transaction statement and a list of the customer’s activity over a period of time.

Customer statements—Process an open transaction statement

  1. From the Home page, click the Statements icon.
  2. In the Select Statement Options section, select a type of statement, in this case, All open transactions as of Statement Date. This statement shows only open transactions as of a specific date.
  3. Under the Select Customers section, select One Customer.
  4. Click the drop-down arrow and select Brian Cook.
  5. Click Preview.
  6. Click the mouse to zoom in. This statement shows only what the customer owes you. The description shows the original invoice amount, and the Amount column shows the unpaid portion of the invoice. Prepare this type of statement if your customer only wants to see outstanding balances without the detail.
  7. Click Close.

Customer statements—Process a customer activity statement

  1. Brian Cook claims he sent a check that wasn’t applied to his account. Prepare a statement that shows his activity over a date range. In the Select Statement Options section, select Statement Period From.
  2. Enter a date of November 1st, 2015 to November 30, 2018.
  3. In the Select Customers section, select Brian Cook.
  4. Click the Preview button.
  5. Click the mouse to zoom in. An Activity-Based Statement shows all customer account transactions during the time period. Note that it only shows accounts receivable transactions that include invoices, payments, statement charges, and credit memos. It does not show sales receipts or cash transactions. Prepare this type of statement if your customer wants to see the transactions that make up their outstanding balance. This statement also shows the aging periods.
  6. Click Close.
  7. Brian Cook reviews his statement but can’t find the invoice you sent earlier, so he wants to see the detail of each invoice. Select the box next to Show invoice item details on statements.
  8. Click Preview.
  9. Click the mouse to zoom in. Now the statement shows each line item on every invoice. Use this if your customer needs to see the invoice detail as a reminder.

Today’s tip is a guest post by Tom Dahm from Real World Training. Catch one of their QuickBooks classes in New York, Miami and other great cities.

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Sometimes your company might have a job that takes months or even years to finish. Do you wait until the job is finished to start invoicing? In most cases, you want to be paid for the work you’ve completed. This process is called progress invoicing. Essentially, you invoice in increments based on an estimate. In this exercise, assume you have already created an estimate for $3,114 for customer Kristy Abercrombie.

  1. First, make sure to turn on the progress invoicing feature. To do this, choose Edit > Preferences and click the Jobs & Estimates icon. Click the Company Preferences tab. In this window, select “yes” below Do you create estimates? and Do you do progress invoicing?
  2. Prepare an invoice based on the Kristy Abercrombie estimate. Click the Create Invoices icon.
  3. Click the Customer:Job drop-down arrow and select the Kristy Abercrombie job.
  4. QuickBooks opens the Available Estimates window.

Now select an estimate to convert it to an invoice. Select estimate number 606.

  1. Click OK.
  2. QuickBooks opens the Create Progress Invoice Based on Estimate window.

Progress Invoicing means you invoice against the estimate in increments until the job or contract is complete. If you choose the first option, Create invoice for the entire estimate, QuickBooks copies all line items and quantities from the estimate to the invoice. The second choice lets you invoice a percentage of the estimate. The third choice lets you specify the items and quantities to transfer from the estimate to the invoice. In this case, select the third option.

  1. Click OK.
  2. Decide which items and quantities to invoice. Select the Show Quantity and Rate and the Show Percentage boxes.
  3. The first four columns show information from the Estimate. The next three columns show anything already invoiced for the job. The last six columns show what you want to charge the customer on this invoice.

To transfer an item to the invoice, enter a Quantity, Amount, or Percentage. In this case, enter 3 quantities. For the first line item, enter 5 for Framing.

10. For the second line item, enter that you installed 5 Frames.

11. For the third line item, enter that you removed 5 Frames.

12. Click OK.

13. QuickBooks opens the Billable Time and Costs window.

14. You can choose to include or exclude existing charges from this customer’s account.  Let’s Exclude outstanding billable time and costs for now.

15. Click OK.

16. QuickBooks copies the selected items to the invoice.  To print the invoice later, select the Print Later checkbox.

17. Click Save & Close.


Today’s tip is a guest post by Tom Dahm from Real World Training, the country’s largest provider of QuickBooks training.

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