An estimate is used to create a bid, proposal, or quote. The estimate can later be turned into a sales order or an invoice. These are the steps on how to create an estimate.
Turn on estimates
To create an estimate, you need to make sure the Estimates feature is turned on
- Sign in to the QuickBooks company file as Admin.
- From the QuickBooks Edit menu, select Preferences.
- On the left pane, choose Jobs Estimates then go to the Company Preferences tab.
- Select Yes to the question "Do you create estimates?"
- Select OK.
Create an estimate
- From the QuickBooks Home screen or on the Customers menu, select Estimates / Create Estimates.
- On the Customer: Job drop-down, select a customer or customer job. If the customer or job is not on the list yet, you can select Add New.
- Fill in the relevant information at the top of the form like the Date and Estimate #.
- In the detail area, select the item(s) you propose to do or include as a sale.
Note: When you select or add an item, the description and amount are automatically populated based on the description and unit cost entered when the item was set up. You can delete or modify this when creating Estimates.
- (Optional) If you want to apply for a discount, you need to create a discount item.
- From the QuickBooks Lists menu, choose Item List.
- Right-click anywhere and select New.
- In the New Item window, select the Type on the drop-down and choose Discount.
- Enter an Item Name/Number and a brief Description.
- In the Amount or % field, enter the discount amount or percentage. If your discount amounts vary, you may want to leave the Amount or % field blank and enter the amount directly on your sales forms.
- From the Account drop-down, choose the income account you want to use to track discounts you give to customers.
- Select an appropriate Tax Code for the item then OK.
- Select Save Close.
Creating an estimate is part of your usual A/R workflow in QuickBooks Desktop. To see the complete list of workflows and other customer-related transactions, refer to Accounts Receivable workflows in QuickBooks Desktop.