Creating Installment Invoices in QuickBooks Using Progress Invoicing
QuickBooks, a popular invoicing software, does not provide a built-in tool for creating installment invoices directly within its settings. However, the software offers an alternative option called progress invoicing, which essentially functions similarly to installment invoicing. This feature is available when users opt for the Job estimating feature in QuickBooks.
The Need for Progress Invoicing
Small businesses often follow the procedure of invoicing their clients after achieving certain milestones in a project. Progress invoicing in QuickBooks can be used to keep track of how much money is still owed and to ensure that the invoiced amount does not exceed the set estimate. The software automatically calculates the previous invoiced amount to prevent over-billing.
Setting Up Progress Invoicing in QuickBooks
Follow these steps to set up progress invoicing in QuickBooks:
-
From the menu bar at the top of the screen, select the QuickBooks tab. From the drop-down menu, choose Preferences, followed by Sales and Invoicing.
-
In the current window, locate the option 'Customer and / or Job Estimates are Prepared' and select the checkbox to place a tick in it. A message will appear, prompting you to close all QuickBooks windows to make the required change. Click OK to proceed.
-
In the same window, find the option 'I want to create progress invoices from estimates' and select the checkbox to place a tick in it. Another message will appear, asking you to close all QuickBooks windows to make the change. Click OK and close the 'Sales & Invoicing' screen.
-
Return to the main screen and select the 'Customer' tab, followed by clicking on the 'Estimates' icon. Alternatively, you can locate this icon by selecting the 'Customers' button from the top menu bar and then choosing 'Create Estimates' from the drop-down menu.
-
Enter the required information regarding the estimates and click the 'Save' option at the bottom of the 'Estimate' screen.
-
At the top of the 'Estimate' screen, select the 'Create Invoice' option, which will open a pop-up window called 'Create Progress Invoice'.
-
You now have two choices:
- A Percentage of the Estimate: This option denotes installments as a certain percentage of the estimate. If you choose this option, enter the percentage amount in the text dialog box and move on to the next step.
- Only Certain Items / Different Percentage Each Time: This option allows you to create installment amounts based on specific items listed under the estimate.
-
Click 'OK'. If you chose the Percentage option, the invoice will be created based on the percentage of the entire estimate amount. If you selected the second option, a 'Specific Invoice Amount' window will open, where you can select the items to be invoiced and their specific amounts. Click 'OK' to create the invoice.
-
In the Invoice window, make any necessary changes to the information before clicking the 'Save' option to create the first installment invoice.
-
To generate subsequent installment invoices, follow the same procedure. After creating the first installment, you will see a new option called 'Remaining Amounts on the Estimates' when you click the 'Create Invoice' tab. Click on this option to generate an invoice for the remaining estimate amount.
By following these steps, users can easily set up installment invoicing through the progress invoicing process in QuickBooks.
Troubleshooting and Support
While the process of setting up progress invoicing in QuickBooks is relatively straightforward, users may occasionally encounter issues. In such cases, they can reach out to the QuickBooks expert team for assistance.
Frequently Asked Questions
Q: Can I create installment invoices directly in QuickBooks?
A: QuickBooks does not have a built-in feature for creating installment invoices directly. However, you can use the progress invoicing feature, which functions similarly to installment invoicing.
Q: What is progress invoicing in QuickBooks?
A: Progress invoicing is a feature in QuickBooks that allows users to create invoices based on the progress of a project or specific milestones. This feature is useful for businesses that invoice their clients after achieving certain project milestones.
Q: How does progress invoicing help with tracking owed amounts?
A: Progress invoicing in QuickBooks automatically calculates the previous invoiced amount, ensuring that the user does not exceed the set estimate. This helps businesses keep track of how much money is still owed by their clients.
Q: What are the two options for creating progress invoices in QuickBooks?
A: When creating a progress invoice, users have two options: 1) A Percentage of the Estimate, which denotes installments as a certain percentage of the estimate, and 2) Only Certain Items / Different Percentage Each Time, which allows users to create installment amounts based on specific items listed under the estimate.
Q: What should I do if I encounter issues while setting up progress invoicing in QuickBooks?
A: If you face any issues while setting up progress invoicing in QuickBooks, you can reach out to the QuickBooks expert team for assistance. They will be able to guide you through the process and help resolve any problems you may encounter.
