Group line items by project phases on estimates and invoices

Use project phases to organize your estimates and invoices by phases of work in QuickBooks Online Advanced and Intuit Enterprise Suite. This helps you track project progress and get paid faster.

Who this is for

Project phases are built for construction businesses that need to:

• Bill clients based on project phases (like Demo, Foundation, or Framing)
• Show detailed progress on invoices
• Collapse and summarize contracts and invoices at the phase level for simplified billing and approvals

Turn on progress invoicing

To start, you need to turn on progress invoicing first. This lets you send multiple invoices for one estimate.

1. Go to Settings , then select Account and settings.
2. Select the Sales tab.
3. In the Progress Invoicing section, turn on the feature.
4. Select Save and then Done.

Create an estimate with project phases

Project phases are groupings or scopes of work, like "Site Prep" or "Electrical." You can organize and summarize your line items under each phase. This makes it easy to track and bill for each phase.

Add project phases to your estimate

1. Go to All apps , then Projects, then Projects (Take me there).
2. Select the project you want to work on.
3. Select Add to project, then Project estimate.
4. In the Product or service section, select Add Phase.
5. Name your group after a phase of work (like "Foundation & Concrete").
6. Add line items under that phase.
   • Tip: You can drag and drop to rearrange groups or move line items between Project Phases.
7. Repeat for each phase of your project.
8. Select Save or Review and send when finished.

Choose what your client sees

You can control how much detail shows on the estimate your client receives.

• Show Phase totals only: Your client sees just the phase names and total costs (like "Foundation: $15,000"). They won't see individual line items. This will display in the PDFs generated by estimates.
• Show all details: Your client sees every line item under each phase.

Select the arrow next to each phase group to collapse or expand the line item details. You can also choose to “collapse or expand all” via the same button at the top of your line items.

Create a progress invoice

Once your estimate is ready, you can create invoices as you complete phases of work.

1. Select your estimate, then select More actions, then Convert to invoice.
2. Choose how much to invoice:
   • Enter a percentage for the whole Phase (like 50% of Foundation work).
   • Or enter a dollar amount for specific line items.
   • Grouped row billing allows customers to apply % invoiced to project phases that apply to all child line items. Individual line item billing will also aggregate to reflect at the phase grouping level. 
3. While editing the invoice, select Manage ⚙ then Customization.
4. Under Table content, find Edit labels.
5. Turn on the toggles for:
   • Total: The agreed amount for that phase.
   • Invoiced: What you’ve already billed.
   • Remaining: What’s left to bill after this invoice.
6. The added columns will appear on your invoices and PDFs. Select Save and send when finished.

Tip: Bill at the Phase level to save time. You don't need to update each line item one by one.