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Level 1

Estimates and Invoices

I work at a construction company and I'm having a hard time to understand when I'm supposed to convert an estimate into an invoice. I start creating an estimate with all my estimated costs and I include a markup for each expense. Next step would be corverting the estimate into an invoice but I'm not sure If I should convert it right away and have one invoice for the full amount of the project or if I should create invoices only when I'm supposed to charge the client a portion of the total amount.

When converting the full estimate into an invoice, I'm able to run reports that shows how much the customer still owns me but I also don't want to create invoices (with services) before receiving the payment from the customer.

2 Comments 2
Level 15

Estimates and Invoices

An invoice is a final sale, so an estimate should be converted to an invoice when you are ready to charge the customer

Content Leader

Estimates and Invoices

Hey there, whbuilders.


Thanks for reaching out for support here in the Community.


You're on the right track! As Rustler mentioned above, an invoice is used for the final sale when it's time for your customer to pay.


I recommend checking out the following linked article for additional info about when to send an estimate and invoice: Create and send estimates in QuickBooks Online. There's also details about converting estimates to invoices.


Please don't hesitate to reach back out if you have any other questions.

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