QuickBooks Online is introducing Progress Invoicing which is still in “beta test” mode as of writing this blog article in February 2018. That means there could still be significant changes until they wrap up the beta test. Progress Invoicing feature allows you to invoicing a client incrementally for the percentage (or fixed dollar amount) that has been completed of the work due or agreed upon the contract. This could be considered a type of partial invoicing or a type of installment invoicing to your clients.
This is a welcome addition to QuickBooks Online since this is ranked #2 feature request on QuickBooks feedback page.
Introduce Progress Invoicing
http://feedback.qbo.intuit.com/forums/168199-quickbooks-online-feature-requests/suggestions/3865710-introduce-progress-invoicing
To get started – you will first need to turn on Progress Invoicing setting
This will also enable different settings such as “Convert Estimate to Invoice”.
- Go to Gear at the upper right corner
- Account and Settings under Your Company section (or Company Settings under Settings tab if QBO Accountant version (04/16/2018 Update, See Below
- Select “Advanced”
- Go to the Automation settings
- Check the box to turn on “Enable Progress Invoicing” and click Save
- This will also turn on “Copy estimates to invoices” and click OK
- Click Done button
04/16/2018 UPDATE
To get started – you will first need to turn on Progress Invoicing setting
This will also enable different settings such as “Convert Estimate to Invoice”.
- Go to Gear at the upper right corner
- Account and Settings under Your Company section (or Company Settings under Settings tab if QBO Accountant version
- Select “Sales”
- Check the box to turn on “Enable Progress Invoicing” and click Save
- This will create multiple partial invoices from a single estimate, and click OK
- Click Done button
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How to create a Progress Invoice
There are two ways to get to the Progress Invoicing options:
From the Estimate:
1. Click on Estimate, and enter your entire amount for your project/job
2. Once the Estimate is saved, click on Copy to Invoice on the upper right of the Estimate
3. Choose if you want:
a) Entire amount: all the lines are invoiced at 100% of the Estimate.
b) Partial amount based on a percentage: all the lines are invoiced at a percent of the Estimate. You can edit the line amounts or percent
c) Custom amount: all lines on the invoice are shown at 0% but you can edit each line
From the Invoice:
1. If a prior Estimate has been created, select “Invoice” from either the Customer or + button
2. In the drawer on the right-hand side, add the Estimate to the Invoice
3. Choose if you want:
a) Entire amount: all the lines are invoiced at 100% of the Estimate.
b) Partial amount based on a percentage: all the lines are invoiced at a percent of the Estimate. You can edit the line amounts or percent
c) Custom amount: all lines on the invoice are shown at 0% but you can edit each line
Save the Invoice. Now on your Estimate, you can see the Amount Invoiced and Amount Remaining.
Remaining is based on the amount invoiced per line.
How to delete a line on a Progress Invoice
To delete a line on a Progress Invoice, click on the trashcan on the right side of the line, and choose Remove Line (do not choose to unlink it). This removes the line from the Invoice and puts the amount back on the Estimate.
Printed Invoices:
The “due” column and Estimate/Invoice Summary will not show on the printed Progress Invoice at this time, but the invoice for your Customer will have all the calculations for progress invoicing.
If you like to see improved customize data layout (like added new columns) that you see on Invoice form and Estimate form, send them your feedback request, click here.
How to see which Invoices are included in the Progress Invoice
- Go to the Estimate
- At the top will show linked transactions which are the Invoices attached to the Estimate
How to see which Estimate was used to create the Progress Invoice
- Go to the Invoice
- At the top will show the linked transactions to the Estimate type attached to the Invoice
How to see what was previously invoiced by line
Go to the Invoice
- On each line on the right-hand side, there will be links.
- Click on the link and it will show Estimate, previous Invoice, and amounts remaining for each line
Calculation of the total amount Remaining Amount:
The remaining amount does not include tax, discount or shipping. It only includes the line item amounts from the Estimate minus what has been invoiced for that line.
Can I invoice for an amount greater than the estimate?
CAUTION: NO WARNING SIGN
If the estimate line is open, then you can invoice for an amount greater than the estimate.
Once the line on the estimate has been completely invoiced, it will not show as available to invoice.
If you want to still invoice it:
• Change the Estimate amount to the higher number and invoice it
• Add a non-progress line on the invoice
How to change a line on a Bundle
If you want to change or add component items to Bundles, go back to the Estimate, and add it there.