How To Set up and Use Progress Invoices in QuickBooks Online

Progress invoicing, also known as progress billing, is the process of completely invoicing a customer for work as it is completed. Thus, you will receive several partial payments at the time of one job, rather than one full payment at the end. To send a progress invoice, you will first need to make an estimate and agree with your customer.

Also, you can know the progress invoice that you want to share with your clients or customers that lets you split an estimate into as many invoices as need be. And it can be also, asking for full payment at the beginning of a project, and then at that time, you can invoice customers for partial payment. Add the item from the initial estimate to the progress invoice as you complete the work. This project keeps payments organized and connected from beginning to end.

Note:- Progress invoice is a standalone feature in all versions of QuickBooks Online. QuickBooks Online Plus users can also use it while using the Project feature.

Here are the steps to set up and use progress invoices in QuickBooks Online

Below we have told the processor of this process, through which you will be able to complete this process, easily you have to follow this process completely.

Step 1: Turn on Progress Invoicing

Progress invoicing can be turned on automatically for some users. If you still do not turn on progress invoicing. Then you need to follow these given steps:-

  • From the toolbar, select the Gear icon.
  • Under Your Company, click on the Account, and Settings (or Company Settings).
  • From the left menu, click on the option of Sales.
  • After that, click on the edit icon in the Progress Invoicing section.
  • Choose the Create multiple partial invoices from a single estimate checkbox.
  • And at the end, click on the option of Save, then select Done.

When you complete the above process then Now you can create multiple invoices from your estimates.

Step 2: Create a Progress Invoice Template

In this step, you can use Premier Airy Style to create a new invoice template. Whenever you create a progress invoice, you should use this template, and the steps are given below:-

  • First, you need to go to the Settings menu and then click on the Custom form styles.
  • Choose the New style and then select the Invoice to create a new invoice template. Or, click on the Edit option to update one of your existing templates.
  • After that, you need to give the name of the template a memorable name, that you can easily recognize lately, like the “Progress invoice template.”
  • Click on the Change up the template or Dive in with a template in the Design tab.
  • Then, choose the option of Airy new template. This is the only template you can use for progress invoices.
  • Click on the option of Edit print settings or When in doubt, then you need to print it out.
  • After that, you need to uncheck the Fit printed form with pay stub in window envelope or Fit to window envelope checkbox.
  • Then, you need to select the Content tab.
  • Click on the option of Edit ✎ on the second section of the form.
  • After that, choose the Show more activity options link.
  • Then click on the Show progress on line items (email only) checkbox if you want to show item details on the progress invoice.
  • And at the last, click on the Done option.

Make this your default invoice template

When you want to use your new template to send progress invoices. We recommend using this as your new standard template for all invoices if you send lots of progress invoices.

  • First, you need to go back to Custom Form Styles.
  • And then, click on the drop-down menu next to the template in the Action column.
  • After that, at the last click on the Make default option.

And when the above process is completed and if you only want to use this template for progress invoices, then click on the Customize directly on the invoice form to change the template.

Step 3: Create an Estimate

  • First, click on the New option and then select the Estimate option.
  • Then, choose your customer option.
  • After that, you need to fill out the rest of the estimate which is important to fill.
  • Go to the Save and click on the new option.
  • And at the end, click on Save and Close option, or then the Save and send option.

Note:- The totals in the remaining column of your estimate don’t include tax, discount, or shipping costs.

Tip:- If you use the Projects feature (QuickBooks Online Plus and advanced) and want to add an estimate to a project, then you need to add it before when you start creating a progress invoice.

Need to edit something on your progress invoice

Here provide the details of if you need to edit an item on a progress invoice, then you make your changes to the original estimate and also make not the invoice itself.

Step 4: Create Progress Invoices from the Estimate

Here we can provide the details of creating progress invoices from the estimates. So, there are a few ways to create progress invoices. Below the details, you can read and follow the steps carefully:-

Create a progress invoice from an estimate

  • First, you need to go to Sales and then, click on the option of All Sales.
  • Then, you need to find the estimate on the list.
  • From the Actions column you need to click on the option of Create an invoice. And you can also open the estimate and then click on the option of Create an invoice.
  • And after that, you need to decide how much you want to invoice for, and then click on the option of Create invoice. 
  • If you choose the Custom amount for each line, and then you need to enter a specific amount for each item on the invoice.
  • Above steps completed then this is an image of the three options that you can choose from when you create a progress invoice from an estimate.
  • After that, you need to fill out the rest of the invoice.
  • And at the end, click on Save and new or Save and close option.

Connect an Estimate to a New Invoice

  • First, you need to click on the Create option and then select Invoice.
  • From the drop-down menu choose your customer option. If the customer has an open estimate, then QuickBooks will open the Add to Invoice sidebar.
  • And then, you need to find the estimate in the sidebar and click on the option of Add.
  • After that, you can decide how much you want to invoice for and then click on the Copy to invoice.
  • And then you need to fill out the rest of the invoice.
  • And at the last, click on the option of Save and new or Save and close.

Your original estimate has to never change when you create a progress invoice in it. And that time the QuickBooks software keeps a record of both processes.

Don’t worry about sending too many invoices by mistake

After you have been invoiced for the total estimate, then the estimated state automatically closes. And when you try to invoice for more than 100% of the total estimate, then you will only be able to add the remaining portion of the balance.

If you want to cut the progress invoice from the original estimate, click on the trash icon for the estimated line item. QuickBooks will ask if you want to unlink the entire invoice. If you do, then click on the option of Yes, and unlink it.

Step 5: Keep Track of your Progress Invoices

In this process, you can keep track of your progress invoices, which will provide details of the review of your estimate, progress invoices, projects, and reports to stay organized.

Review Estimate

Here, you can see all of your progress invoices on the original estimate. Follow these given steps:-

  • First, you need to go to the Sales menu and then click on the option of All Sales.
  • And then, you need to find and open the estimate.
  • After that, choose the blue linked transaction(s) to see the invoices that you’ve already created.

Review Progress Invoices

The progress invoice includes an estimated summary along with the total invoice. There are also links to the original estimates and all relevant progress invoices. Here, with the help of review progress that can add an estimated summary to the invoice so that your customers can see their balance, and it is not on by default.

Check Projects

Here, you can see everything in the Transactions tab of a project page that you can want to see if you add estimates to projects.

Run Reports

If you want to Estimates Progress Invoicing Summary by Customer report gives you a complete list of all estimates and connected progress invoices. Here, you can follow these given steps carefully:-

  • Firstly, go to Reports.
  • And then, you need to search for and open your Estimates Progress Invoicing Summary by Customer report.

And then, also the transactions are organized by the customer. And the estimates have positive totals and the progress invoices have negative totals.

And when you can be done with all the above processes then you save a progress invoice, a few things happen, and the details are given below:-

The invoice now displays an Estimate Summary to track the progress. Then you will see this:

  • A link to the original estimate and the amount
  • A link to each Invoice linked to the original estimate, and the amount of each
  • The current invoice amount
  • The total invoiced amount

The original estimate now shows additional information, such as:

  • Linked transactions:- Here, it will provide a pop-up list with links to all related invoices and the amount and date of each
  • Remaining column:- Provide the details of shows the amount left to invoice for each line
  • Remaining subtotal:- Also provide the displays the amount left to invoice for the entire estimate

Note:- The amounts in the Remaining column and Remaining subtotal field, and can not include tax, discount, or shipping. It is described only to display the line item of it or subtotal amount, which is also less the amount on the invoice that is created by you.

Update Customer Emailed Invoices

When you want to email the progress invoice to customers, that time you need to have the option to add an EstimateSummary and also a Due column to invoices of the customer.

  • First, you need to go to the toolbar menu, and then choose the Gear icon.
  • Under Your Company, and click on the option of Custom Form Styles.
  • Go to the option of New style drop-down, and then choose the Invoice option.
  • After that, click on the Change up the template on the Design tab, and then click on the Airy classic option.
  • Then, you need to select the Edit print settings and make sure that the Fit printed form with pay stub in the window envelope checkbox is not chosen.
  • After that, you need to go to the Content tab, and then you need to click on the Activity section of your invoice.
  • Choose the option of Show more activity, and then mark the Show progress on line items (email only) box.
  • After that, you need to click on the Footer section.
  • In the Display section, select the Estimate summary (email and web only).
  • And at the last, click on the Done option.

Make Changes to Your Estimates

You can update your progress invoices by updating your estimates. Here below some ways to do it, you need to follow the steps of the way carefully:-

Change an Estimate

If you need to change an estimate, then you need to follow these steps:-

  • You need to open the estimate and then make your changes.
  • After that, you can create a new estimate and make a new progress invoice from it.

Increase the amount of a line item on an estimate

If the item hasn’t been fully invoiced then you need to increase the amount of a line item on an estimate only. If it has, it can’t be changed.

And when you want to update the line item, then you need to enter the amount greater than the original estimated amount in the column for the line item.

Delete a Line Item

If you want to delete a line item, then you need to follow these steps:-

  • Select the trash can icon on that line.
  • Then, click on the Remove line option.
  • Don’t select Unlink as this won’t delete the item or the amount.

We have discussed above how to set up and send progress invoices in QuickBooks Online and hope this article provides you the solution. If you follow these steps carefully, then you will surely complete this process. If you still have any problems or any queries in which you need our support then feel free to contact us at our Intuit Certified ProAdvisor.

Call Now
error: Content is protected !!