Sales Orders

@Anonymous

I think you made a typo: "These transaction has different functions; sales orders are used to track multiple orders and Fulfillment, while estimates are used to analyze profits Progress."

@Sarah JB

The SO is based on Qty only, and that's why they are often used, created From the estimate, for purposes of managing demands on inventory. They work fine for services, as well, but fulfillment and backorder tracking is Qty-based, the purpose of using SO.

You actually can use Estimate and SO, then invoice your customer from billable time and costs. They all meet different tracking, management and reporting needs.

We thought we would use the Sales Order as a way of showing that an Estimate was approved so we would easily see what estimates were a go and which ones needed to be followed up on.  I guess we can still invoice from the Estimate if a progress invoice is needed and close the Sales Order once the customer is fully invoiced.  Unless you have another suggestion for tracking estimates from bid to awarded.

We are experimenting with using the Sales Order as a way to show that an estimate has been accepted.  Then we know to follow up on those without a Sales Order to either get approval to move forward or inactivate it if they are not going to award it to us.  I guess I can still invoice from the estimate if I need to do a percentage based invoice and close the Sales order once the estimate has been invoiced.  If you have another suggestion for knowing what estimates have been approved and which have not I would love to hear it.  Thank you

Thanks for the report info.  I have created a saved report.  I'm wondering though about the Job Status field on the Customer/Job record.  It allows us to indicate Pending, Awarded, etc.  But how can we use this field in reports?  Like to see what jobs are in awarded state or pending state or completed state?

Hello there, Sarah JB.

I'm here to help provide additional information about the Job Status field in QuickBooks Desktop.

You can use the Customize Report option on a report to add the Job Status column.

Here's how:

1. Run a report.
2. Click Customize Report.
3. Go to the Filters tab.
4. In the search field, type in Job and select Job Status.
5. Click the drop-down arrow below Job Status and select the option you want.
6. Click OK.

Please keep in touch with me here if you need further assistance with the reports. I'm always around here in the Community.

This is the only option that creates Progress: "I guess we can still invoice from the Estimate if a progress invoice is needed"

And this is Fine: "and close the Sales Order once the customer is fully invoiced."

"Unless you have another suggestion for tracking estimates from bid to awarded."

That is Job Status.

@Anonymous

A Transaction Report is a listing of Activity. Not Job Status. That shows what has been created for the customer name. Use Reports menu > List Report, for Customer info, including Job Status reporting. In Reports menu > Jobs, Time & Mileage, you also see the reports for Estimates, which will include Active Status.

@Sarah JB

You want Reports menu > Contractor Reports, if you are using the Contractor Edition, for Job Status. Otherwise, make your own: List reports. Start with Customer Phone, customize it, Retitle it and Memorize it.

Please see my attachment.

I can't believe that progress invoices can't be generated from sales orders! I have a need to do 15% down upon booking, 75% more on shipping, and 10% after final acceptance.  But this should be tied to the sales order, which is where the contract is expressed for us.  Now I'm not sure how the heck I can manage the billing separately from the shipping!

@kate111

You have Progress billing from the Estimate, as Progressive against that Baseline Scope.

Or, you are Fulfilling their order. That means by Quantity, even if that is Services or Noninventory.

And you didn't tell us which Program you are using. If you have Premier installed as either Wholesale/Manufacturing, or as Retail, or the Accountant Edition, or any Enterprise, you have Backorder tracking. If you have Pro or any other Premier edition installed, you are missing the function you are asking about = backorder tracking.

These are completely different concepts:

Estimate of work for price, so Fulfillment here as Progress is by Quantity, Cost or % for each line item.

Sales Order is included in the warehouse management and inventory reporting and provides for better reporting for demands on goods and services. Fulfillment here is Never by Amount or by %. You only have Qty control, here.

They are provided to meeet different needs.

You also have one more: Directly Billable as in a time & Costs arrangement. You still would use an estimate for your quote to provide to the customer, or simply as your internal planning tool. Now you will use Add Time & Costs, to Bill. That means Neither progress nor order fulfillment. But you still get to use Est vs Actuals reporting and can track Scope and even Cost to Complete compared to the Estimate, for both cost and revenue.

So, everything here is your tool, to use as needed. But you use the Right tool that gives you the functions you need.

Please see my attachment.

I am using Enterprise manufacturing and wholesale 19.0.

We have a large order that has ACCEPTANCE criteria meaning:

15% down payment required

75% more due net terms upon shipment

10% due some time after shipment, upon what is commonly known as FINAL ACCEPTANCE.  

So while we are indeed selling them a manufactured item, which has quantities, etc. the thing needs what is commonly known as a billing plan - allowing us to take some money that is not revenue, convert it to revenue and recognize more revenue when shipment happens - then generate more invoices at more 'milestones' unrelated to quantities.  Perhaps we have outgrown QB and need to find a bigger better solution.

"the thing needs what is commonly known as a billing plan"

Yes, but you need to know what you are Listing for them to pay, which might be a benchmark, not the actual Product. Example:

I list a scope on an estimate for a kitchen remodel, which includes 5 cabinets and 20 hours of labor + some flooring. If I want Half Down, that isn't 2.5 cabinets; you cannot deliver or sell 2.5 cabinets. It isn't 10 hours of labor; the work has not even started. What you see here is the Justification or the math that results in the amount of Prepayment I will request. The Prepayment Item is what I put on the First invoice or sales receipt. The Scope of work from the Estimate hasn't even started.

You stated it right here: "allowing us to take some money that is not revenue,"

The first billing is an Other Charge type item linked to Liability as Prepayment.

Then: "convert it to revenue"

Now you are ready to make an actual invoice for income and/or scope, or you delivered product, so the Invoice is the Full Sale at this point. That prepayment item is put on a Credit memo for this same date and Applied. Now you Relieved the Liability (Credit memo) and instead of refunding it, you Applied it to the Sale. The Invoice now is the Income event. The application of the Credit Memo shows the Prepayment is in lieu of New Money, because you wanted to apply it to show the income is now Partially Paid by that earlier payment.

You don't Move liability to income. You charge for income, and show it is "paid by prepayment funds we already got" which relieves the liability account of that balance.

"and recognize more revenue when shipment happens"

That would be the next invoice.

"then generate more invoices at more 'milestones' unrelated to quantities.  Perhaps we have outgrown QB and need to find a bigger better solution.'

You just need to lay it out, and understand at which point there is Prepayment, not income; at which point there is Income, and if that is all to be paid with New Funds or prepayment applied, or both needs; etc.

You have all these tools in QB Pro. That means Enterprise easily does it, as well, because you are paying for the Ferrari Program. QB Pro does this and costs about $150.

This has been asked for for years, and nothing happens... its like they dont understand English, and have not ever ran a small business.