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Sarah JB
February 5, 2019
Question

Sales Orders

  • February 5, 2019
  • 13 replies
  • 28 views

We use the Contractor Edition of QB.  When we invoice from an estimate we are able to invoice a percentage of that estimate.  I do not see that option for a Sales Order.  Can progress invoices not be done form Sales orders?

13 replies

A
Anonymous
February 5, 2019

Hi there, @Sarah JB,

 

Thanks for checking this with the Community. I can share some information about progress invoicing in QuickBooks Desktop.

 

At the moment, progress invoicing only applies to your estimates. You can create an invoice for selected items but not a percentage of your sales order.

 

These transaction has different functions; sales orders are used to track multiple orders and Fulfillment, while estimates are used to analyze profits.

 

If this is something beneficial for you, I'd suggest sending this preference to our developers. Doing this will let them know what features would help a business like yours run a little better, and they will consider that in a future update.

 

Here's how to send your request:

  1. Click the Help menu bar.
  2. Scroll down to Send Feedback Online.
  3. Select Product Suggestion.
  4. Choose Product Suggestion for the Type of Feedback.
  5. Product Area is optional.
  6. Enter your suggestion.
  7. Click Send Feedback.

That should do it. Your suggestion goes directly to our Development Team who considers feedback for QuickBooks enhancement. I'll do the same thing in my end to reinforce your request.

 

Please keep me updated if you have any more questions about QuickBooks. I'll be glad to help. Have a great day!

 

 

K
kate111
February 15, 2019

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!

qbteachmt
qbteachmt
Level 11
February 15, 2019

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.

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