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Level 1

How to create an invoice with scheduled payments?

Is it possible to create an invoice that displays the total being billed, less payments that have been made, less payments not due yet, so that what's due now appears in the lower right corner?

 

 

(Title has been edited by moderator for clarity)

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Best answer December 16, 2017

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Highlighted
Level 15

How to create an invoice with scheduled payments?

What you are asking about is Progress Invoicing.

 

The full scope goes on the Estimate.

 

Each invoice is a Date of charges with its own Due Date. There is no 30-60-90 for just One invoice. That cycle = three invoices, each with its own Charged Date and Due Date. Due Date is typically based on terms, such as "Net 15." The invoices would be 30-60-90 days apart, but you expect to be paid each time within 15 days = terms.

 

You create the first invoice and select that it is From that Estimate. Use a Progress Invoice template, to show as many of the Columns as you want to see on screen and on the customer's printout: Estimate, Prior, $, % and/or Qty.

 

You won't see Payments here that are applied to other invoices. That is Statement = this customer's account activities, showing running balance.

View solution in original post

26 Comments
Highlighted
Level 8

How to create an invoice with scheduled payments?

Hi there, Steve. 

 

I'd be happy to lend a hand with this invoice. 

 

It sounds like you may be looking for a customer statement, which shows what your customer's balance is up to a specific date. Can you please confirm if this is what you're looking for, and then let me know if you're using QuickBooks Desktop or QuickBooks Online? 

 

I look forward to hearing back from you. 

Highlighted
Level 1

How to create an invoice with scheduled payments?

I'm visualizing an invoice, although maybe there's a way to accomplish what I want with a statement.  I'm certainly willing to try. :)

 

I'm using QB Accountant Desktop 2016

Highlighted
Level 8

How to create an invoice with scheduled payments?

Thanks for following up with me. 

 

Is this invoice for a product/service that you'll be invoicing them for progressively, or are you just wanting to show them the amount they owe you based on invoices already created, paid, and not paid?

Highlighted
Level 1

How to create an invoice with scheduled payments?

A customer is being invoiced for $40,000.00 with payments of $10,000.00 due in 30 days, $15,000.00 due in 60 days, $5,000.00 due in 90 days, and $10,000.00 due in 120 days.

 

The initial invoice should show $40,000.00 and when each payment is due.  Putting payment terms of 30-60-90-120 wouldn't really work, because the payments aren't all for the same amount.  Subsequent invoices should show when each payment was made, how much is currently due, and how much is due in the future.  Or can that be done cleanly with statements instead of multiple invoices?

Highlighted
Level 1

How to create an invoice with scheduled payments?

I want to show them the amount they owed originally, the amount they owe now, and the amount they will owe in the future.  I'd like all of this information on a single invoice, if possible.  If not, (and I suspect it's not possible), I'd like to know how to show that information on a statement.

 

FWIW, I took the original invoice, I saved it as a PDF, I converted the PDF to a Word document, I edited the Word document so that it looks the way I want it to look, I converted it back to a PDF, I sent the new PDF to my customer, and I attached the PDF to the original invoice.  But that's a pretty complicated and convoluted process.

Highlighted
Level 8

How to create an invoice with scheduled payments?

I appreciate these details, Steve. 

 

I'd like to see if the transaction history has what you're looking for. To run this report, please follow these steps: 

  • Open up the invoice. 
  • Click the Reports tab. 
  • Select Transaction History

Here you'll see the payments made and amount due. On the right side of the report, you have the option to print it out to send to your customer.

 

Please let me know if this is similar to what you're looking for. 

Highlighted
Level 1

How to create an invoice with scheduled payments?

The transaction journal for that invoice shows the full amount in the Accounts Receivable account, and the full amount in the Income account.  It doesn't show the one payment that has already been received.  But even if it did, that's not what I'm looking for.

Highlighted
Level 8

How to create an invoice with scheduled payments?

Instead of using the transaction history, a simple statement will show the same information: the date they were invoiced for the $40,000, the date of their payment, and how much they currently owe. At this time, there isn't a way to show what they will owe at a future date. I recommend sending this as a feature request to the engineers to let them know you'd like to see this added: https://quickbooks.intuit.com/commerce/common/fragments/feedback.jsp.

Highlighted
Level 15

How to create an invoice with scheduled payments?

What you are asking about is Progress Invoicing.

 

The full scope goes on the Estimate.

 

Each invoice is a Date of charges with its own Due Date. There is no 30-60-90 for just One invoice. That cycle = three invoices, each with its own Charged Date and Due Date. Due Date is typically based on terms, such as "Net 15." The invoices would be 30-60-90 days apart, but you expect to be paid each time within 15 days = terms.

 

You create the first invoice and select that it is From that Estimate. Use a Progress Invoice template, to show as many of the Columns as you want to see on screen and on the customer's printout: Estimate, Prior, $, % and/or Qty.

 

You won't see Payments here that are applied to other invoices. That is Statement = this customer's account activities, showing running balance.

View solution in original post

Highlighted
Level 1

How to create an invoice with scheduled payments?

Hi Steve,

 

I might be able to help a bit, if you haven't already figured it out. I own a school transportation company. I have set contract amounts on our daily school bus routes, that are then split into 10 equal monthly payments. So every September I create the entire school year invoices. So for an example it would be $1000 per month, Sept thru June for a $10,000 contract, since school operates 10 out of 12 months. I put the date for the 1st of every month. You would just have to create the invoices in advance with the dates on the invoice that you want the payment due. (I use due on reciept) My issue is when an invoice isn't fully paid. On the statement it doesn't show that a payment was applied to a particular invoice. I have multiple open invoices for any customer, constantly. It just shows as a payment made and the date. School districts don't always pay in the month its due. Or payments are made from a different account, for example  Band trips, (which are NOT billed in advance) they might have fundraisers to afford the trip, so the "Activities Account" pays for the trip but then there are other trips on the invoice that the Board of Education pays. So next month I'd like to be able print a statement showing that the Activities Account paid $ on invoice #. So if someone from QB is reading this, can you advise how to do it? Thank you and Good Luck Steve.

Highlighted
Level 1

How to create an invoice with scheduled payments?

Here is what I think is a simple problem.  A service is provided, in this case, a loan totaling $100,000 (interest included).  How would you put that in to quickbooks and have QB send invoices on a monthy basis for 5 years or 60 months.  Also, to make this even more simple, the lendee could not pay off the loan sooner to receive a discount on the interest.

 

Thus, 1/1/2019 Loan $100,000

Payment due 2/1/2019 $1,666.67

Paid: 2/1/2019 $2,000

Payment due 3/1.2019 $1,666.67

Paid: 3/1/2019 $3,0000

 

In other words, overpayments don't matter - it does not reduce the liability of $100,000 or the payment schedule, and the overpayment is at the discretion of the payer.

Highlighted
Level 1

How to create an invoice with scheduled payments?

Here is what I think is a simple problem.  A service is provided, in this case, a loan totaling $100,000 (interest included).  How would you put that into quickbooks and have QB send invoices on a monthly basis for 5 years or 60 months?  Also, to make this even more simple, the payer could not pay off the loan sooner to receive a discount on the interest.  However, they can pay off the loan as fast as they want to

 

Thus, 1/1/2019 Loan $100,000

Payment due 2/1/2019 $1,666.67

Paid: 2/1/2019 $2,000

Payment due 3/1.2019 $1,666.67

Paid: 3/1/2019 $3,0000

 

In other words, overpayments don't matter - it does not reduce the liability of $100,000 or the payment schedule, and the overpayment is at the discretion of the payer.

payment schedule and the overpayment is at the discretion of the payer.

Highlighted
Level 15

How to create an invoice with scheduled payments?

A Service is provided, or a Loan was made. Those are two different things. I provide a service to you and Charge you for it. Or, I gave you Money and this loan must be paid back. Or, I sold you a car and offer to carry the Loan and you will pay me over time. I perform a Service, Charge you, and that is my sales income.

 

For Loans, I use an estimate. I put the Other Charge Item here linked to the Other Asset debt account, for the full amount owed to me. I can progress invoice from the estimate, and then add the interest income to the invoice. The Estimate will track the remaining balance as will the Other Asset account. This is called Progress Invoicing. This exists in QB Desktop.

 

Overpayments matter because you just created Negative AR, obscuring your real AR and violating the cash basis reporting, if that matters to you. Put a Prepayment item on the invoice, which makes this your Liability, to be applied to later invoices by using a Credit Memo; this is the same as the Escrow Accounting process. Or, your client just prepaid Principal, and you have to Progress Invoice accordingly.

 

Payment schedule is based on the Amortization terms.

 

Overpayment is not Negative AR for you. The client needs to understand if the loan provision treats it as prepaid Interest against the full amortization or if that is Additional Principal.

 

 

Highlighted
Level 1

How to create an invoice with scheduled payments?

thank you so much Rich , I'm simply trying to create an invoice recurring monthly with same amount

Highlighted
Level 1

How to create an invoice with scheduled payments?

I don't even see a link on home page for invoicing

 

Highlighted
QuickBooks Team

How to create an invoice with scheduled payments?

Hello there, harrymania2331.

 

Let me assist you in creating recurring invoices in QuickBooks Desktop.

 

When you create an invoice, you can save it as a memorized transaction. From there, you can set it up how often you want to process it.

  1. Go to the Customers menu and select Create Invoices.
  2. Enter all details required. Press =Ctrl + M on your keyboard.
  3. Choose Automate Transaction Entry and select Monthly on the How Often drop-down.
  4. Click OK, then Save and close.

You can also press Ctrl + T or go to the Lists menu and select Memorized Transaction List to see all recurring transactions you created. I have an article here for your reference:

Post again here if you need anything else. Wishing you all the best!

Highlighted
Level 1

How to create an invoice with scheduled payments?

I too am trying to accomplish this same task. That is, creating recurring invoices for a large balance to be paid monthly in installments. I've created an estimate in QB and from there created progress invoices. I then saved and memorized my progress invoice. When I posted the next progress invoice from my memorized transactions, it doesn't appear to be linked to my estimate. I have several customers who will be paying in installments. I would prefer not to open up each estimate every month to create an invoice. How can I make sure my memorized invoices are linked to the corresponding estimates, in which I can track the remaining balances?

Highlighted
QuickBooks Team

How to create an invoice with scheduled payments?

Thanks for joining us here, @szimmer3890.

 

To make sure your invoice is linked to the estimate, you'll have to work from your estimate instead of doing it in the normal invoice workflow. I'll guide you how.

 

Create an estimate:

  1. Go to the Customers menu and then select Create Estimates.
  2. Choose your customer.
  3. Fill out the rest of the estimate.
  4. Select Save & Close.

 

Once done, you can now link your estimate to an invoice. Here's how:

  1. From the Customers menu, select Customer Center.
  2. Choose the name of your customer.
  3. Find and open the estimate on the customer's page.
  4. Click Create Invoice from the toolbar.
  5. Decide how much you want to charge on the invoice. 
  6. Click OK.

 

You can check out this article to learn more about progress invoicing: Set up and send progress invoices in QuickBooks Desktop.

 

Also, you may want to consider sending online invoices to your customer. This way, they'll be able to pay you directly from the invoices.

 

Don't hesitate to click the Reply button if you have additional concerns. I'll be around to help. Have a great day!

Highlighted
Level 1

How to create an invoice with scheduled payments?

Hello Everyone

 

I have a somewhat similar but different problem. We provide training and charge a set amount for a 6-week long course. The Ministry requires us to report sales based on the earned revenue and also report unearned revenue. Here is an example. Let's assume the program costs $6000 and a student enrolls on 1st June 2020 for 6 week-long course. At the end of the month of June, you are required to record a sale of $4000 ( $6000/6 weeks X 4 weeks in June).  Also, If you have received $4000 or less life is good with the Ministry. If you have received more than $4000 that has to be reported as " unearned revenue". Basically you have charged for the services that you have not provided yet. 

 

I am running into three problems, a regular invoice posts the entire sale in the month of June while it needs to be split $4000 in June and $2000 in July. How do I create this invoice?

 

Secondly, How do I get the due dates correctly based on this 6-week schedule( assuming I have the solution for the first problem).

 

Lastly, any reports to calculate the " unearned revenue" in the month of June in case someone pays more than $4000 in June.

 

thanks.

Highlighted
QuickBooks Team

How to create an invoice with scheduled payments?

Hello there, SAMGILL.

 

When the customer avail the 6-week program, make sure that the Invoice date is the day the customer avail the program. For the Due Date, enter when the 6-week program will end. You can also set up Terms so it will be automatic.

 

When the customer pays the partial amount upon signing up, record the payment as normal Receive payment. make sure the payment date is the day the customer paid. The remaining balance will be paid the same way you recorded the initial payment.

 

If the customer paid although the 6-week program hasn't started yet, you can record the prepayment as a retainer. For the detailed steps you can use this reference: Manage upfront deposits or retainers.

 

For the report that shows unearned revenue, you can pull up any sales report you usually run and ensure that it is set to Accrual with the correct report period. For further customization with your reports, you can use this article for more details: Customize reports in QuickBooks Desktop.

 

Feel free to mention me in your reply if there's anything else that you need help with. You take care!

Highlighted
Level 1

How to create an invoice with scheduled payments?

Thanks for your Response Catherine. I would need to seek your help a little further. Let`s say a student enrolls on September 15th, 2020. I will create an invoice and set terms to net 30 days. Would the quick books count $6000 as the sale amount of the month of September? If so, how do I get it to count $3000 for September and the other $3000 for the following month as the service is spread over 30 days?

Highlighted
QuickBooks Team

How to create an invoice with scheduled payments?

I appreciate you getting back to us, @SAMGILL.

 

Allow me to provide additional information on setting up terms on an invoice.

 

When you set terms to an invoice, it only means that you expect to receive a payment from a customer on that day. To answer your question based on your example, QuickBooks will only count $3000 sales for September if you record their first payment in the same month. And the other $3000 sales will be recorded in the following month if you record their second payment in the month of October.

 

As stated by my colleague Catherine_B, you'll want to make sure that the payment date is the day the customer paid their payment.

 

I'm adding this article to learn more about setting up terms: Set up payment terms.

 

Please feel free to visit our Community forums again if you have other questions with QuickBooks Desktop. We're always here to help. Have a wonderful day!

Highlighted
Level 1

How to create an invoice with scheduled payments?

Hi Mark

 

I followed the instructions above. A new invoice was generated on September 14th for $5000 with a net 35 days for payment. The customer made a payment of $800 on September 14th and it was posted in quick books. When I run a PNL in accrual mode from Sep 14th to the end of September. I still see the full sale amount of $5000 posted for the month of September. See attached picture. I am not sure what am I doing wrong. PNL snip.PNG

 

 

Highlighted
QuickBooks Team

How to create an invoice with scheduled payments?

Thanks for following up with the Community about this, SAMGILL.
 

You're seeing everything correctly for how your Profit and Loss was generated. When producing these reports, you have an Accounting method option which controls what's included on them.
Here's the two different accounting methods that can be used and how they differ:
Cash

  • Income/expenses that have taken place will be displayed.

Accrual

  • Income/expenses will be shown as if they happened, even if they haven't occurred yet. For example, if you create an invoice and never send it to a customer, it'll show up on your P&L when matching dates for the document are entered.


To only see amounts your customers have paid you on reports, make sure you're using our Cash method.
 

You'll be able to find more information about accounting methods in the following resource: Choose between cash & accrual accounting methods in reports
 

I'll be here to help if there's any questions. Have a lovely day!

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