Step 1: Create an estimate
- Select + New.
- Select Estimate.
- Select a customer from the Customer dropdown.
- If the work has already started, select a status from the Pending ▼ dropdown. This is optional.
- Set the Estimate date and the optional Expiration date.
- Enter the products or services you plan to sell.
- Enter any other info you need.
- When you're ready, select Save.
Step 2: Update an estimate's status
When your customer accepts the work, or decides they don't want to continue, update the estimate's status. This keeps your accounts accurate and up-to-date:
- Go to Sales, then select All sales (Take me there).
- Find the estimate.
- In the Action column, select the dropdown▼ and then Update Status.
- Select Accepted or another status. Then select OK.
Tip: Estimates are non-posting transactions. They won’t affect your books until you convert the estimate to an invoice.
Step 3: Convert an estimate to an invoice
Convert the estimate to an invoice so you can bill your customer:
- Go to Sales, then select All sales (Take me there).
- Find the estimate.
- In the Action column, select Convert to invoice.
- If you have progress invoicing turned on, choose how much you want to invoice: (Skip this step if you don’t use progress invoicing)
- To create an invoice on the entire estimate amount, select Remaining total of all lines. Then select Create invoice.
- Or, to create an invoice for only part of the estimate, you can select the option to enter a percentage of each line or the option to enter a custom amount. Then select Create invoice.
- Make any changes to the invoice, then select Save and send, or Save and close.
Add an estimate to an existing invoice
Instead of converting estimates, you can also add them to existing invoices:
- Select + New.
- Select Invoice.
- Select the customer from the Customer dropdown. This opens the Add to Invoice window.
- In the Add to Invoice window, select Add on each estimate you want to add to the invoice.
- If you have progress invoicing turned on, choose how much you want to invoice (Skip this step if you don’t have progress invoicing):
- To create an invoice on the entire estimate amount, select Total of all estimate lines. Then select Copy to invoice.
- Or, to create an invoice for only part of the estimate, you can select the option to enter a percentage of each line or the option to enter a custom amount. Then select Copy to invoice.
- Make any updates or edits to the invoice. Then select Save.
Tip: If you have more than one open estimate for a customer, you can add them all at once. However, your customer may prefer separate invoices for each one.
Review open estimates
- Go to Sales, then select All sales (Take me there).
- Select the Filter ▼ dropdown.
- In the Type dropdown, select Estimates.
- Find your estimate.
If you have QuickBooks Sole Trader, you might not see the below report in your company version.
You can also run a report to get more details:
- Go to Reports (Take me there).
- Look for and open the Estimates by Customer report.
- Select your date range and select Run report.
This gives you the customer name, the estimate number, the status, and the amount.
Delete an estimate
If a client decides they don't want you to do work anymore, it's better to update the estimate status to Closed rather than delete it. (See Step 2: Update an estimate's status.) This keeps the record on your accounts for good bookkeeping.
But if you created an estimate by mistake, you can simply delete it:
- Go to Sales, then select All sales (Take me there).
- Find the estimate.
- In the Action column, select the dropdown ▼ and then select Delete.
- Select Delete to confirm.