How to Use Progress Invoicing in Quickbooks
Turn on the Progressive Invoicing preference in your QuickBooks accounting business software., When you create a bid or quote for a project, use the Estimate transaction., Once you have your Estimate transaction created and the work has begun, start...
Step-by-Step Guide
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Step 1: Turn on the Progressive Invoicing preference in your QuickBooks accounting business software.
To do this, go to the Edit menu, select Preferences, then select Jobs and Estimates on the left side.
Under the Company Preferences tab, you will want to Yes to both “Do you create Estimates?” and “Do you do Progress Invoicing?”. -
Step 2: When you create a bid or quote for a project
The Estimate functionality is very similar to creating an Invoice, and uses the same item list as you would if you actually created an invoice.
But, the Estimate transaction does have a few differences, which you need to take into consideration.
First of all, an Estimate does not have an effect on your accounting books, which means it is a non-posting transaction.
Second, the Estimate also includes columns to track your estimated cost, as well as your customer’s price.
This allows you to ensure that you are making a profit on the bid or quote. , When you click the Invoice button across the top of the estimate, you will have the option to create an invoice for the entire estimate, for a percentage of the estimate, or to select individual lines on the estimate transaction.
For example, if your milestones for the project are at 20%, 45%, 75% and 100%, you would in this case invoice for 20% of the estimate first, then 25% (45%-20% already invoiced), then 30% (70%-45% already invoiced), then finally 25% for the remaining amounts.
As you create the invoices, QuickBooks accounting business software keeps track of what is left open, or non-invoiced on the estimate so you don’t have to manually remember that information. -
Step 3: use the Estimate transaction.
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Step 4: Once you have your Estimate transaction created and the work has begun
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Step 5: start to invoice for a portion of the estimate.
Detailed Guide
To do this, go to the Edit menu, select Preferences, then select Jobs and Estimates on the left side.
Under the Company Preferences tab, you will want to Yes to both “Do you create Estimates?” and “Do you do Progress Invoicing?”.
The Estimate functionality is very similar to creating an Invoice, and uses the same item list as you would if you actually created an invoice.
But, the Estimate transaction does have a few differences, which you need to take into consideration.
First of all, an Estimate does not have an effect on your accounting books, which means it is a non-posting transaction.
Second, the Estimate also includes columns to track your estimated cost, as well as your customer’s price.
This allows you to ensure that you are making a profit on the bid or quote. , When you click the Invoice button across the top of the estimate, you will have the option to create an invoice for the entire estimate, for a percentage of the estimate, or to select individual lines on the estimate transaction.
For example, if your milestones for the project are at 20%, 45%, 75% and 100%, you would in this case invoice for 20% of the estimate first, then 25% (45%-20% already invoiced), then 30% (70%-45% already invoiced), then finally 25% for the remaining amounts.
As you create the invoices, QuickBooks accounting business software keeps track of what is left open, or non-invoiced on the estimate so you don’t have to manually remember that information.
About the Author
Dennis Henderson
Enthusiastic about teaching home improvement techniques through clear, step-by-step guides.
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