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Join nowMy client is a contractor and works on large construction contracts as a sub. The owner or general contractor only pay invoices on a prescribed contractual date each month like the 20th or the 25th or whatever is in the contract.
So the "terms" functionality doesn't work for us. Unless there is some trick that I don't know. They often send bills out early because of the time it takes to invoice (AIA) and volume. So I cannot use 30d or any other fixed days. How do we make this work?
Solved! Go to Solution.
Hi there, @Holly31.
In QuickBooks, we use Estimates and Progress Invoicing to complete this task. This way, you can create and break down the cost of an estimate into many invoices needed for partial payments on the work done. I'd be glad to show you how to do that.
You can begin with turning on the Progress Invoicing feature, here's how:
Once done, you can now create an Estimate and create progress invoicing to link the Job cost per contract. Please refer to this article to know the detailed steps: Set up and send progress invoices in QuickBooks Desktop. You'll also learn how to track the transactions linked by running a report mentioned at the bottom part of the article.
You'll want to customize the report to see the progress of the Job cost being rendered. Here's an article that fits: Customize customer, job, and sales reports in QuickBooks Desktop.
Please don't hesitate to tag my name below if you need further assistance or questions. I'd be happy to back you up. Have a wonderful day ahead.
Hi there, @Holly31.
In QuickBooks, we use Estimates and Progress Invoicing to complete this task. This way, you can create and break down the cost of an estimate into many invoices needed for partial payments on the work done. I'd be glad to show you how to do that.
You can begin with turning on the Progress Invoicing feature, here's how:
Once done, you can now create an Estimate and create progress invoicing to link the Job cost per contract. Please refer to this article to know the detailed steps: Set up and send progress invoices in QuickBooks Desktop. You'll also learn how to track the transactions linked by running a report mentioned at the bottom part of the article.
You'll want to customize the report to see the progress of the Job cost being rendered. Here's an article that fits: Customize customer, job, and sales reports in QuickBooks Desktop.
Please don't hesitate to tag my name below if you need further assistance or questions. I'd be happy to back you up. Have a wonderful day ahead.
Thank you! They use an unrelated estimating software and have not been diligent about entering revenue/cost estimate (also causing fits with WIP reporting). They already have preference set as you recommended.
I'm going to read the links you provided. I'll let you know if I have any questions (pretty sure that I will). Will it matter that they are doing CO's as separate estimates? What's the preferred way to add cost/revenue related to a change order?
I'm glad to see you getting back to us here in the Community, @Holly31.
You'll have the option to edit or change the information on your estimate that you send to your customer. Let me walk you through editing an estimate in QuickBooks Desktop (QBDT).
Furthermore, here's an article you read that provides basic information in creating an estimate in QBDT: Create an estimate.
I've added this article in case you need help with the Accounts Receivable workflows in QuickBooks Desktop.
You can always share your concerns with us, as we're here to get your QuickBooks matters sorted out.
While you provided very valuable information, I'm still at a loss for how to make payment terms a particular day of the month. Please help us to understand how this works.
I'd be glad to guide you on how to make payment terms in QuickBooks Desktop, @Holly31.
Payment terms signify when you expect to receive a payment from a customer or when you pay bills to your vendor.
To add a payment term, here's what you'll need to do:
6. Click OK to save it.
You'll want to save time managing your payments. Feel free to review this article for the details: Recurring Payments.
Please leave a comment below if you need further assistance with setting up customer terms in QuickBooks Desktop. I'm here to always help.
Thank you for jumping in to help. Neither standard solution works for us. Here are our requirments.
1. We must prepare and submit invoices before a fixed contract date each month.
2. The invoice is not due until the following month on the fixed contract date.
ex. Customer has fixed date of the 25th. Due to volume, we begin to prepare and send invoices days before the 25th but it's not standard when they are sent. The customer is expected to pay by the 25th of the following month.
We can get close using standard functionality but not good enough for cash flow projections or collection work. Still need a solution.
Thanks for getting back to us, Holly31.
For now, those options mentioned by @Rubielyn_J are the only possible solutions that you can do if you want to set up payment terms in QuickBooks Desktop.
If this functionality doesn't work for cash flow projections, I recommend reaching out to your accountant for other ways on how to do it.
You can also stay current on all QuickBooks latest news and updates by visiting QuickBooks Blog.
For future reference, you can read this article in case you'll enter customer payment: Record An Invoice Payment.
As always, let us know if you need more help. We're always here to assist you anytime.
No solution. Sad. This billing method is normal for contractors. Perhaps someone else in the construction industry give me their method of creating terms consistent with contract.