Sales Order workflow in QBO Plus - am i missing a step?

klja37 · ‎February 28, 2026

Hello! I am trying to figure out the best workflow from Estimates > Sales Orders > Invoices. I've tried two different workflows, and each seems to have a flaw by leaving an open document (or I am missing a step??).

WORKFLOW 1 (used for Order A below):

Using this method, both the sales order and the invoice are created by using the “convert” feature on the estimate.

I create an estimate. Once that estimate is accepted by the client, I mark the estimate as accepted and convert the estimate to a sales order (from the menu within the estimate). Once the client is ready to pay, I go back into the estimate and convert it into an invoice. The estimate is then marked as Converted. Then I apply the client payment, and the invoice is marked as paid.

Here is the catch. Using this method, on the SO summary page, that SO still shows as Not Invoiced, even though it is.

Additionally, the Invoice and the SO both link to the Estimate, but the Invoice and SO are not linked to each other.

So, I tried a different workflow thinking that it would fix it.

WORKFLOW 2 (used for Order B below):

Using this method, I create the sales order from the estimate and then create the invoice from the sales order.

I create an estimate. Once that estimate is accepted by the client, I mark the estimate as accepted and convert the estimate to a sales order (from the menu within the estimate). Once the client is ready to pay, I open the SO and from within the sales order, I convert it into an invoice. Then I apply the client payment, and the Invoice is marked as Paid. Additionally, on the sales order summary page, the payment status changes to Paid.

Here is the catch with this method: the estimate shows as Accepted but not Converted. The Convert to Invoice link on the estimate summary page is still showing.

Using this method, the Estimate is not linked to anything. The SO links to the invoice and the invoice links back to the SO.

Here are a few screenshots:

Estimates Summary Page

Sales Order Summary Page

Invoice Summary Page

Is there a way for:

1) the estimate to show as converted,

2) the sales order to show as paid,

3) the invoice to show as paid, and

4) for all three docs to be linked to each other?

Thank you in advance for any suggestions and tips!

ThomasJosephD

Hi klja37, you're correct, just like estimates, sales orders are non-posting transactions and won't appear in your books, affect your income, or impact your A/R until you actually convert them into an invoice.

Since these orders have a specific role in your workflow, you can manually close them and mark them as shipped without triggering an invoice.

I also agree with your approach of converting the estimate directly instead. This way, you can handle the billing and ensure you don't end up with any duplicate invoices.

Don't hesitate to reply here if you have more questions.

View solution in original post

ThomasJosephD

Hi klja37, the behavior you are experiencing is working by design within QuickBooks Online.

Currently, the system does not support a native three-way link that updates the status of the Estimate, Sales Order (SO), and Invoice simultaneously. Due to this limitation, one document in the chain will inevitably remain in its current status.

Based on the goals you've shared, I recommend sticking with Workflow 2 and leaving the estimate in accepted status rather than converted. Since it is a non-posting transaction, it has no impact on your financial records or General Ledger, it will simply serve as a historical record of the initial quote.

However, if you prefer to convert the estimate into an invoice, an alternative is to skip the SO step entirely. Since both serve a similar purpose, you can convert your estimate directly to an invoice.

If you need further clarification, don't hesitate reply below.

klja37

Hi @ThomasJosephD ,

Thank you for the response. I can't skip the SO, as I need the ability to track orders that haven't shipped. Many items are made-to-order or backordered. I need a way to keep track of those orders in case my clients follow-up for status.

Is the SO also a non-posting transaction? Since one document essentially has to be left open under QBO's current capabilities, I think Workflow 1 may be better for my situation. That way someone on our team doesn't see "convert to invoice" on the estimate and accidently convert an estimate a second time. Confusing/upsetting clients and also incorrectly doubling our sales in QBO.

In Workflow 1, I could leave the SO as Not Invoiced, but (I believe) still be able to mark it as Shipped (Fulfilled) and to change the order status to closed once it's both paid and shipped. Is that correct?

Thank you!

ThomasJosephD

Hi klja37, you're correct, just like estimates, sales orders are non-posting transactions and won't appear in your books, affect your income, or impact your A/R until you actually convert them into an invoice.

Since these orders have a specific role in your workflow, you can manually close them and mark them as shipped without triggering an invoice.

I also agree with your approach of converting the estimate directly instead. This way, you can handle the billing and ensure you don't end up with any duplicate invoices.

Don't hesitate to reply here if you have more questions.

klja37

Thank you!

Tori B

On behalf of my colleague above, you're certainly welcome, @klja37.

Please feel free to reach back out anytime. We are always happy to lend a hand. Take care!

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Sales Order workflow in QBO Plus - am i missing a step?