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kahandler
Level 1

Progress billing- prevent partial removal of inventory

We sell equipment that has many individual parts.  We bill our customers 30% up front, then the balance in two more payments.  We ship (and remove the inventory) when the sales order is paid in full.  When we create the first progress invoice for 30%, QBO is taking 30% of each part out of  inventory, leaving us with quantities on hand of ".7" which of course, makes no sense. 

How do I prevent the progress bill from removing parts from our inventory account until the last progress bill when we actually remove it and ship it?

4 Comments
ReymondO
QuickBooks Team

Progress billing- prevent partial removal of inventory

Hi there,@kahandler.

 

As of now, the option to prevent the partial removal of items from the inventory isn't available in QuickBooks Online. 

 

However, you can use the estimate as a way to record the number of orders your customers have requested, then create the invoice after they pay you. Here's how:

 

  1. Create an estimate transaction once your customer orders equipment on you.
  2. Open this transaction once your customer pays you, then select Create invoice.
  3. Choose the options you want to use and click Create invoice.

I hear you and realize the importance of this matter into your business. Let me send feedback to our developers so they can check it and probably add this feature in any future updates.

 

I also encourage you to visit our Firm of the Future website to stay current with our news and updates.

 

Please know that you're always welcome to comment anytime if you have other concerns.

 

Rustler
Level 15

Progress billing- prevent partial removal of inventory

@kahandler 

 

in QB you have to use a service item for the partial payments, then list the inventory items on the final invoice with the qty and total price set to zero.

 

From what you say, you would create the initial invoice for 30% using a service item you create.
then create an estimate for the second payment using that same service item.
then create an estimate for the final payment using that same service item and the balance due, list the inventory items, qty and set them to a zero sales price

 

You can future date the estimates, and when that date comes around, copy to invoice

kahandler
Level 1

Progress billing- prevent partial removal of inventory

I’m not sure that will work.  Our sales reps prepare a sales estimate that lists all the parts and then that gets converted to a sales order that corresponds to the customers purchase order .  The sales order then gets converted into the into the sales bill.  Therefore, the inventory is on the bill from the beginning.   Is there a way I can show the list of inventory  items on the invoice but have them valued at zero so I can use the service item that will have the amount due be the only item on the bill with a cost associated with it?

eghouston
Level 1

Progress billing- prevent partial removal of inventory

This process is working for me...

  1. I create an estimate. 
  2. From the estimate I create an invoice and use the option:   0% of each line = $0.00
  3. Then on the invoice I add a line item with Product Name "Deposit on Account" which is mapped to my Balance Sheet "Bank" for the money received offset with a liability account for Deposits Received.  This creates an invoice that shows the customer what they ordered, and the deposit required.
  4. When the product is delivered, I go back to the Estimate and create an invoice using the option:   Total of all estimate lines = $  then add the line item "Deposit on Account" with a negative amount for what was previously invoiced and received.  The previous related Balance Sheet items clear, Inventory and Cost of Goods Sold are intact and the Sale and A/R line items are created.
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