Progress Invoicing QuickBooks Online
The QBO Progress Invoicing has several options which allows for invoicing a percentage, custom or remaining open balance. Since there are multiple options, let’s take a look at many scenarios to demonstrate what’s available.
To Start Progress Invoicing create an Estimate in QBO with an accepted status.
1) In QBO, create an Estimate
2) The status of the invoice needs to be Accepted
3) Click Create Invoice to open options
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4) QBO will pop-up a window asking you to specify 'How much you want to invoice' using 3 possible options:
- Total of all estimate lines = $ (the estimate total)
- Calculated percentage of each estimate line
- Custom amount for each estimate line (this works great when there are multiple phases of work and each line represents a different phase).
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Create Invoice Based on Calculated Percentage of each Estimate line.
For example, if we wanted to invoice for 25% of each line on our Estimate we would complete the 2nd option by filling in 25% (as shown below). QuickBooks will calculate the values and provide a total representing 25% of the total estimate amount.
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We've spotlighted and enlarged the 'middle option' so you can see it a little better. In response to this selection, QuickBooks generates a progress invoice for 25% of the original amount, as shown below.
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Note the new 'Due' column pointed to by the black arrow (above), this highlights how much of the estimate is being invoiced.
Editing Options Preserve Estimate Integrity
Progress Invoicing also gives us the ability to delete lines from a progress invoice yet retain the integrity of those line items on our estimate. In other words, if I remove one of my 25% invoiced lines from the above invoice, the full value of that line remains as billable on my original estimate.
1) To 'delete a line' from an invoice (using the above invoice as our example), click the trash-can icon at the right end of the line item.
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2) Trashing the line will allow you to remove it from this Invoice but it remains billable on your estimate at a future date.
And there is more
By clicking in the new 'Due' column, a hidden dialog box opens that gives you additional editing options.
- Percent can be edited
- Amount can be substituted in lieu of percent
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Estimate Balance Remains Open for Invoicing
The balance of any Estimate remains open until full payment is received (or you close the estimate manually).
Partial invoices are linked to each estimate allowing for easy tracking, as shown below.
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- The original estimate
- The amount(s) invoiced (notice the new columns reflecting Remaining amount and Invoiced amount)
- Linked transactions (with hyperlink to each progress invoice)
Creating an Additional Invoice as Another Partial Billing
1) From the Open Estimate, click Create Invoice to open options
2) In this example we select the option, Custom amount for each line
3) Click on the 'Due' amount of any/each line, a otherwise hidden dialog box opens allowing you to edit either the percent or the amount for the partial billing.
4) Enter the amount or percentage you wish to invoice. In this case we will Invoice for the balance of line 1 and 100% of line 2, but we are not ready to invoice any of line 3.
Line 3 remains 'open' since we haven't invoiced any of it. We have created 2 different invoices from the same estimate, and yet the Estimate remains open for the portion we have yet to invoice. Our Estimate is illustrated below.
In the illustration above the highlight numbers represent: (1) our original estimate, (2) the various amounts that have been invoiced and those which remain open, (3) the details with hyperlinks to the Invoices generated from the Estimate, and (4) the remaining amount to be invoiced.
Invoicing the Remaining Balance of the Original Estimate
1) From the Open Estimate, click Create Invoice to open options
2) In this example we select the option, Total of all estimate lines = $ (in our example the amount is $525.00), as shown below.
QuickBooks immediately creates an Invoice for the remaining balance of the Estimate, at the same time the Estimate is 'closed'.
As you can see (above) the invoice contains only the 1 line item that had previously not been invoiced.
When we examine our original Estimate (below) we can see that it is now closed.
The illustration above highlights (by number) the following aspects of the estimate: (1) the original estimate, (2) shows each line item is now closed, (3) shows all three of the associated Invoices (with hyperlinks to each).
This is a 'great' new feature for QuickBooks Online, and it offers a lot of capabilities and flexibility that is critical to many small businesses that need progress billing functionality.
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