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.
- 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?
- Prepare an invoice based on the Kristy Abercrombie estimate. Click the Create Invoices icon.
- Click the Customer:Job drop-down arrow and select the Kristy Abercrombie job.
- QuickBooks opens the Available Estimates window.
Now select an estimate to convert it to an invoice. Select estimate number 606.
- Click OK.
- 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.
- Click OK.
- Decide which items and quantities to invoice. Select the Show Quantity and Rate and the Show Percentage boxes.
- 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.