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Community Contributor *

Progress percentage invoicing

Contractor signs contract for $50,000.  Need to  bill percentage of that each month what was completed.


I need to show the entire contract amount on the balance sheet so I created an item "Proposal" going to "Unearned Revenue" - other current liability.  I have setup QB to do estimates and progress billing.  


Can someone give me exact details on how to do that from start to finish?


Thank you.





QuickBooks Team

Re: Progress percentage invoicing

Hello, beancounterbooks.


First, you'll create an estimate. Using the estimate, create a purchase order so you can create a bill. Then, using the same estimate, create an invoice.


Here's how to create an estimate and create a purchase order from it:

  1. Click Customers, then choose Create Estimates
  2. Fill in the necessary fields, then click Save & Close.
  3. Open the estimate, then click Create Purchase Order.
  4. Choose Create purchase order for all allowed items, then click OK.
  5. On the Purchase Order window, add a vendor.
  6. Click Save & Close.

Next, open the purchase order to create a bill. Here's how:

  1. Click Vendors, then choose Enter Bills.
  2. Choose the vendor name.
  3. You'll receive a message, "Open purchase orders exist for this vendor. Do you want to receive against one or more of these orders?", click Yes.
  4. Choose the estimate, then click OK.
  5. Click Save & Close.

When you open the bill, this will show the billable customer.


Lastly, create an invoice from the estimate. Here's how:

  1. Open the estimate, then click Create Invoice.
  2. Choose Create invoice for a percentage of the entire estimate, then enter the percentage in the % of estimate field.
  3. Click OK, then click Save & Close

As always, I suggest conferring with your accountant on the best way to handle this situation.


While I can't answer any accounting advice queries, I'm here for you if you have other QuickBooks technical concerns.

Established Community Backer ***

Re: Progress percentage invoicing

For Customers, you use Estimate to show the Plan or Scope and Price agreed to, and expectation that the fulfillment will result in actual Charges to them = invoices or sales receipts.


For Vendors, you use Purchase Orders to show the Plan or Scope and Price agreed to, and expectation that the fulfillment will result in actual Charges to you = Bills or Checks or Credit Card Charge entries.


You don't list Deferrals under these conditions. That's why PO and Estimates are Non-posting.


An Accrual basis reporting entity might have work in process; that is Deferrals, later, for the Work. Not for the signing of Contracts.