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zs2
Level 2

Explain estimate, invoice, payment workflow

I am new to Quickbooks Online and the estimate, invoice and payment process. I am hoping someone can explain how to navigate this for my small business.

 

I created an estimate and can send it to my client. Often they want changes and I am comfortable making edits and resending to them for finalization. Once the estimate is final, I can click "Create Invoice" to move it from estimate to invoice. I have an event design business, so the first payment is 25% of the total amount and the remainder is due two weeks prior to the event date.

 

Question 1: Quickbooks prompts me for "invoice full amount", "invoice 50% per line" or "custom amount per line". I am thinking I need to select "invoice full amount" and advise the client to only pay 25% or do I select "custom amount per line" and send only a 25% of the invoice as the amount due? If I do the latter, do I issue the invoice again at a later date for the remaining 75% of the invoice?

 

Question 2: Sometimes clients will make multiple partial payments towards the invoice. Once received, how do I record partial payment against the outstanding invoice? If I then resend the invoice to them, will it show payments already made and amount outstanding?

 

Thanks!

Solved
Best answer 03-04-2019

Best Answers
Level 4

Re: Explain estimate, invoice, payment workflow

Hello @zs2 

 

  Here are also some steps for you to get the partial payments recorded to one invoice:
  

  1. Click the Plus icon.
  2. Choose Receive Payment.
  3. Enter the customer name.
  4. Select the invoice by putting a check mark.
  5. On the Payment column, enter the partial payment amount (see screenshot).
  6. Click Save and close.

    Another way would be to click Receive Payment in front of the invoice itself, all the details will already filled to the payment and you would need just to correct the payment amount. Then you will be able to see partially paid invoice in the Customer transactions list (Sales->Customers -> Search for Customer name).

Hope that helps too!

 

Polina

View solution in original post

2 Comments
Level 15

Re: Explain estimate, invoice, payment workflow


@zs2 wrote:

I am new to Quickbooks Online and the estimate, invoice and payment process. I am hoping someone can explain how to navigate this for my small business.

 

I created an estimate and can send it to my client. Often they want changes and I am comfortable making edits and resending to them for finalization. Once the estimate is final, I can click "Create Invoice" to move it from estimate to invoice. I have an event design business, so the first payment is 25% of the total amount and the remainder is due two weeks prior to the event date.

 

Question 1: Quickbooks prompts me for "invoice full amount", "invoice 50% per line" or "custom amount per line". I am thinking I need to select "invoice full amount" and advise the client to only pay 25% or do I select "custom amount per line" and send only a 25% of the invoice as the amount due? If I do the latter, do I issue the invoice again at a later date for the remaining 75% of the invoice?

 

An invoice is a final sale and posts to income.  Better to use the partial invoice concept

 

Question 2: Sometimes clients will make multiple partial payments towards the invoice. Once received, how do I record partial payment against the outstanding invoice? If I then resend the invoice to them, will it show payments already made and amount outstanding?

 

You use receive payments, select the invoice and enter the actual amount paid,, the invoice will stay open for the balance due.

 

No that partial payment will not show on an invoice, you use customer statements to show account activity, invoice, payments, credit memos, etc

 

Thanks!


 

Level 4

Re: Explain estimate, invoice, payment workflow

Hello @zs2 

 

  Here are also some steps for you to get the partial payments recorded to one invoice:
  

  1. Click the Plus icon.
  2. Choose Receive Payment.
  3. Enter the customer name.
  4. Select the invoice by putting a check mark.
  5. On the Payment column, enter the partial payment amount (see screenshot).
  6. Click Save and close.

    Another way would be to click Receive Payment in front of the invoice itself, all the details will already filled to the payment and you would need just to correct the payment amount. Then you will be able to see partially paid invoice in the Customer transactions list (Sales->Customers -> Search for Customer name).

Hope that helps too!

 

Polina

View solution in original post

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